Tennessee Commerce Bank is offering a competitive savings account paying 2.30% APY. It's also offering a some top cd rates.
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.
Promotional savings rates - especially those where the bank commits to locking a certain rate for a certain period - are a win-win.
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.
Everbank raised the promo rate on its yield pledge money market account from 2.55% to 3.01%. This reverses the trend of six months of rate cuts and may be another sign that we are reaching the bottom in savings and money market rates.
Everbank raised the promo rate on its yield pledge money market account from 2.55% to 3.01%. This reverses six months of rate cuts and may be another sign that we are reaching the bottom in savings and money market rates.
Everbank's 1 year APY has increased from 1.87% to 2%. What we've always found interesting about Everbank's offer is that the three month promo is a guaranteed rate for three months. That means, in essence you get an account equivalent to a 3-month CD that is paying 3.01% APY and that is totally liquid. The best 3-month CD rate according go the BestCashCow rate tables is 1.70% APY.
At times like this, when rates seem to have bottomed and are increasing on the longer-term CDs, parking money for a short-term in a higher yielding account like Everbank may make a lot of sense.
Everbank has always had a competitive promo rate. Starting last fall it began to drop, along with savings and money market rates in general. This increase reverses the trend of six months of rate cuts and may be another indicator, along with a leveling of the decline we've seen, that savings and money market rates have bottomed and will start trending up.
