Article Summary:

Best short term CD rate – Danversbank with a four month CD rate of 2.50%.
Best one year CD rate ( almost ) – Choice Financial 13 month CD rate of 2.50%.
Best mid term CD rate – State Farm Bank with a 28 month CD rate of 2.75%.
Best long term CD rate – US Bank 59 month CD rate of 3.75%.

This is part two on the continuing saga of great CD rates that got away.  If you read part 1, which was not labeled part 1, you would know that these articles cover great CD rates available nationally that do not easily fit into the molds we use to measure CD rates.  All of these CD rates are still available at the time of this article.

The principal reason these CD rates do not fit or are not easily measured is that as nationally available CD rates they have odd month terms or maturities that do not have a category of measurement.  We have already covered US Bank’s 59 month CD rate that was at 4.00% earlier in the week and was just reduced to 3.75% – at 3.75% this CD rate is the highest five year CD rate now.  If a consumer were to shop for this rate on the largest CD rate search sites, it would not be identified, go ahead try it use google and look up CD Rates and troll the top 3-5 web sites.

The reason for the most search sites no including this CD rate offer is that the US Bank CD offer is on a 59 month term and thanks to my completion of first grade at Fiske School in Lexington, Massachusetts I know that would be one month shy of a five year term.  Since it is an odd month maturity it does not get measured in rate tables by the big websites.  This offer by US Bank, now at 3.75%, is the best five year CD rate available but can’t be found by the big web sites.  Hmmmm.

State Farm Bank’s 28 month CD at 2.75% was also covered as one that got away.  This CD rate is still available as well by State Farm Bank and even though this misses the term by a bit, if it were compared to two year CD rates it would be by far the best two year CD rate available. 

Todays’ first new CD rate find comes from Danversbank in er…Danvers, Massachusetts.  Danversbank offers a four month CD at 2.50%.  This is an online only CD that is available from any state in the nation is on a 4 month term with a CD rate of 2.50%.  You can not find a six month CD rate anywhere near 2.50%. 

Danverbank has assets of approximately $1.75 billion.  The bank turned a profit of $1.75 million in the first quarter of 2009 and turned a profit for the full year of 2008.  Noncuurent loans are only 0.46% of total loans outstanding.  The total risk based capital ratio is 14.98%, tier 1 cap ratio is 13.98% and core capital or leverage ratio is 10.12%, well capitalized.  Danverbank also took a pass on participation in the governments TARP program, “quite frankly, we didn’t need to” is the quote from President Kevin Bottomley.  One more time, “quite frankly, we didn’t need to”.

The second pick comes from Choice Financial Group in…..Grafton, North Dakota.  I have no idea where that is but I am confident the residents of the area have far higher ethical and moral standards than my neighbors ( whoops ).

Choice Financial has an internet only CD with a 13 month term that has an interest rate of 2.51%.  This CD rate is well ahead of the one year CD rates presently available, of course it is a 13 month term and the teachers at Fiske School would remind me that the really isn’t a one year term.  Well, frankly, I think I would accept the extra month for the additional 1/4 percent yield this CD delivers.

The CD rate is on what the bank calls their Rate Buider CD.  This bank CD has 13 month term, a 2.51% APY and a minimum deposit of $5,000.00.

Choice Financial Group is a Federal Reserve Non member bank.  It is regulated by the FDIC and the deposits are insured by the FDIC.  The bank has just slightly over $500 million in assets.  The bank earned a hair over $2 million in the first quarter of 2009.  Net operating income in 2008 was approximately $7 million.  Non current loans stood at 1.04%.  Total risk based capital ratio is 11.03%, tier 1 risk based cap ratio is 10.01% and core cap or leverage ratio is at 9.00%.  Choice Financial also did not take part in the TARP program.  What a coincidence.

Next week I will lay off the excessive Pepsi consumption and write slightly more coherently. 

Contacts for those banks reviewed:

Choice Financial


State Farm Bank

US Bank

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