AloStar Bank of Commerce, based out of Birmingham, Alabama was originally founded to supplement the “bedrock” of the American economy by focusing it’s efforts on two major segments of the US population – deposit savers and businesses.
Important Note about AloStar Bank: AloStar Bank was formerly Nexity Bank. They are just one of several online FDIC-insured banks that have changed their name after the 2008 bank collapse due to negative consumer associations with their brands as well as problematic and/or failed businesses. When Nexity Bank went under in April, AloStar Bank was formed to take over all of their assets.
By making their bank CDs available across the country (48 states) through online CD accounts, AloStar Bank of Commerce can attract consumers from varying geographic locations with their above average CD rates and ease of account opening and funding. With their depositors cash they then fund businesses with $5 million to $150 million in revenue who need a variety of commercial lending products.
They are the 9th largest bank in Alabama (despite being able to service savers throughout the nation) and the 774th largest bank in the United States.
CD Rates available at AloStar Bank of Commerce:
(Rates accurate as of September 2011. Compare these rates with the best CD rates of 2011. AloStar Bank of Commerce provides varying yields on their certificates of deposit depending on the consumer’s deposit amount. A minimum deposit of $1,000 is required to open one of their CDs.)
- 30 day CD 0.26% APY with a minimum deposit of $1,000 required.
- 90 day CD yielding 0.76% APY with a minimum deposit of $1,000 required.
- 6 month CD yielding 1.05% APY with a minimum deposit requirement of $1,000. * Avg. rates for 6 month CDs currently sit at roughly 0.45% APY.
- 9 month CD yielding 1.03% APY with a minimum deposit of $1,000 required.
- 12 month CD yielding 1.27% APY with a minimum deposit of $1,000 required.
- 24 month CD yielding 1.37% APY with a minimum deposit of $1,000 required.
Team Behind AloStar Bank of Commerce:
The financal executives in charge with setting forth the direction of AloStar are Michael Gillfillan and Andrew McGhee. Together, Gillfillan and McGhee have 66 years of experience in banking and private equity.
Gillfillan spent 26 years at Wells Fargo and ended his tenure as chief credit officer and vice chairman. Most of his experience lies in bank governance and commercial finance management.
McGhee was a co-founder at Archway Equity Partners, an Atlanta-based private equity firm, in 2008. Before that he spent 12 years with SunTrust Bank and served as their managing director of three business units before becoming vice president.
If you have experience in banking with the newly formed AloStar Bank of Commerce, please share by leaving a comment below!