Last year, FDIC and MCUA deposit insurance was temporarily increased from $100,000 to $250,000 until the end of 2008. The Helping Families Save Their Homes Act of 2009 (S. 896), signed by President Obama last week, includes a provision that extends the FDIC and NCUA deposit insurance limit off $250,000 until December 31, 2013.

The bulk of the bill deals with mortgages and foreclosures, so the extention was not widely covered in the media.

Tennessee Commerce Bank is offering a competitive savings account paying 2.30% APY as of 6/5/2009. That puts it near the top of the best savings and money market rates on the BestCashCow rate table. It's also offering a some top cd rates. As of 6/5/2009:

• 2.40% APY 12 months

• 2.45% APY 18 months
• 2.87% APY 24 months
• 3.27% APY 36 months
• 3.45% APY 48 months
• 3.65% APY 60 months

Opening and Funding

To open the savings account or a certificate of deposit, you'll need to download an application form, fill it out and mail it back with two pieces of identification. To fund the account, you can send a check with your application, use ACH, or use a wire transfer.

Some key things to know about the account include:

• The account is available nationally
• There is a $250 minimum opening deposit and balance to avoid a $2.50 monthly fee
• Trust accounts and POD accounts available
• $2.50 charge for more than one withdrawal per month.

Safety and Soundness

Based on FDIC data from March 31, 2009, Tennessee Commerce Bank has$1.266 billion in assets and $1.108 billion in deposits. Bauer Financial gives it 3.5 out of 5 stars (Good) for its safety and soundness. The bank is FDIC insured.

Credit for this find goes to BankDeals.

Please share any experience you've had with Tennessee Commerce Bank.

Banks need deposits and in this environment often need them quickly.

So far, in 2009 alone, we have seen a couple of banks quickly raise large amounts of deposits with promotional savings rates. Cheasapeake Bank launched ClearSkies, an online banking arm, to offer depositors a 3 month lock on a 3.75% earlier this year. The promotion was so successful that the bank quickly lowered its rate because it got more deposits than it needed. East Boston Savings Bank recently followed suit with a 4 month lock on a 2.82% rate, which it recently lowered for the same reason. Currently, Acacia Federal Savings Bank is offering a 4 month lock on a 2.25% rate.

Promotional savings rates, especially those where the bank commits to locking a certain rate for a certain period - are a win-win situation. With the distribution on the internet, and site such as BestCashCow.com, the information on these rates gets out quickly and enables banks to quickly raise the funds that they need. Depositors wind up with a rate that is well in excess of comparable-length CDs. Additionally, depositors can rest assured that the banks usually will need to remain competitive after the guarantee date.