Shore Bank Promotional 3 month CD Rate – 10% APY!

January 25, 2009 9 Comments »

Shore Bank certainly does “get it” as far as promotional CD rates go. As of January 21, 2009 Shore Bank has an astonishing 3 month CD promotion yielding a whopping 10% APY for deposits up to $1,000. This CD rate tops BankVibe’s CD promotional rates category and will most likely remain at the number 1 spot for quite some time. Although the maximum deposit is fairly low this is still a phenomenal investment opportunity for those wishing to invest smaller amounts of money.

Shore Bank is a subsidiary of Hampton Roads Bankshares and is headquartered in Onley, Virginia. It is one of the top 5 largest banks in that state by customer base and asset size. Shore Bank has just 9 bank branches, but Hampton Roads Bankshares is fairly large institution with just over 700 employees.

Hampton Roads Bankshares is a publicly traded company and can be found on the NASDAQ Global Select Market under the symbol HMPR. Hampton Roads Bankshares have been hit hard lately and as of Q2, 2012, have a market cap of around $60 million. A fraction of what they used to be worth, you can buy shares of Hampton Roads Bankshares (as of Q2, 2012) for under $2 apiece.

Our Take:

We’ve covered a number of these promotional savings products recently where an incredibly high interest rate is accompanied with a low maximum deposit allowance. While ideal for newbie savers, they may not be that beneficial to more veteran savers. For those looking to invest much more into a deposit, you may want to consider a jumbo CD. A jumbo CD typically features a higher APY while requiring a much larger minimum deposit. Another important factor to consider is our current interest rate landscape. As a whole, interest rates are scheduled to continue their decline and will likely hover near zero until, tentatively, 2014 (according to latest FED meeting). Given this, we would suggest perhaps a longer term deposit such as a 3 or 5 year CD to hedge against future low rates.

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  • RD

    Not a general offer. “Exclusively offered to residents of Wicomico, Somerset, or Worcester County Maryland and Accomack or Northampton County in Virginia”

  • zach

    after going to the site, it says nothing about 10% for the CD rates only for their Grand Slam Checking account? Am I missing something?

  • admin

    zach,

    follow this link and look at the table titled, “Shore Bank Deposit Rates”….

    shorebank.com/rates_va.asp

  • Jumbo CD Rates

    The sad thing about these high rate teasers is after the guaranteed period (90-days) in this case the bank is almost certainly going to tank the rates. Or the bank itself may tank (think WaMu).

  • Will

    Why is it that only credit unions offer these type of cd rate promotions? I haven’t seen any bank offers that rival these rates. What’s the deal with that?

  • zach

    i went to your link. Its still the same. The Grand Slam introductory rate of 10% for 90 days is for the checking account not a CD.

  • http://www.Invesmint.com Bernz

    Yes, it is for checking account and not CD rates. If you scroll down a bit you will see their CD rate table. It’s still pretty high for checking account though.

  • Will

    Its a checking with a 3 month term? What is that some sort of hybrid? Certificate of Checking Deposit??

  • Jason

    This so called bank doesn’t even offer a 10% rate and the 5% afterwards doesn’t exist either. It is called false advertisement. I called one of their local banks and Ashley said they don’t offer it. So before you open an account up do some research first. Just an FYI.