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 Read more...]]> 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!

Quick History of CPFCU:

Coosa Pines Federal Credit Union was Read more...]]> We were just forwarded a phenomenal 6 month CD rate coming out of Alabama which happens to be beating the national average by almost twice the APY. Coosa Pines Federal Credit Union (Alabama residents only) is now offering it’s members a 6 month CD yielding a whopping 1.25% APY (national average sits at just 0.63% APY) with a minimum deposit of $1,500 required.

Quick History of CPFCU:

Coosa Pines Federal Credit Union was chartered in 1950 by a small group of paper mill employees in Childersburg, Alabama. The credit union was operated out of a small office within the paper mill, and membership was open only to employees of the mill, their immediate family members, and members of their households. For many years, the mill ran strong in Talladega County, and the credit union grew just as strong, outgrowing the little office inside the mill. The members of Coosa Pines constructed the first credit union office building, which still serves as the Childersburg branch and our Corporate Office, on property adjoining the mill… amid the great evergreen pines of Central Alabama.

Complete List of CD Rates Available to some Alabama Residents:

How Regions Bank got it’s roots…

Regions Financial Corporation traces its Read more...]]> Regions Bank, the first multi-bank holding company in Alabama, was originally formed in 1971 as First Alabama Bancshares Inc. With the combination of three well-respected banks, the holding company began operations with a total of $543 million in assets and 40 banking locations in Birmingham , Huntsville and Montgomery. Today they operate in 16 states across most of the southeast to midwest.

How Regions Bank got it’s roots…

Regions Financial Corporation traces its roots back to three Alabama-based banks who became original affiliates of First Alabama Bancshares, Inc., chartered in 1970 as the first multi-bank holding company in the state of Alabama. Those three banks are: the First National Bank of Huntsville, chartered in 1856, the First National Bank of Montgomery, opened in 1871, and the Exchange Security Bank of Birmingham.

Regions Bank’s Product Offerings:

Regions offers a wide array of products for personal, small business and commercial banking customers. Within the personal banking vertical they offer the full assortment of products – checking, savings, CDs, credit cards, mortgages, refi’s, auto loans, student loans, insurance and investing. They also intertwined these products with state of the art online banking technology – online bill pay, mobile banking, etc.

CD Rates available through Regions Bank:

Regions Bank’s CD rates epitomize the miserable state of the current consumer savings market. Their rates provide yields of next to nothing with maturities ranging from 2 months to 5 years. PLEASE NOTE – These rates may be outdated. Refer to the date of this article for accuracy. Visit BankVibe.com’s CD Rates page for updated rates.

CD Rate Terms and Conditions:

If you are strictly after the best interest rate then you have a variety of options that will provide you with similar yields. The question you need to ask yourself is, “what type of minimum balance can I keep?” Most money market accounts provide a given interest rate based on a certain account balance. The more money you are able to keep in Read more...]]> Below are the highest yielding money market account rates serving citizens of the state of Alabama.

If you are strictly after the best interest rate then you have a variety of options that will provide you with similar yields. The question you need to ask yourself is, “what type of minimum balance can I keep?” Most money market accounts provide a given interest rate based on a certain account balance. The more money you are able to keep in these accounts, the higher the interest rate you will generally receive.

After sorting through dozens of interest rate tables belonging to banks and credit unions serving the state of Alabama, we have found that in most instances you will be able to lock in more competitive rates with national institutions rather than local ones. Before committing to one of the banks/credit unions listed below, you may want to browse through our archive of money market account interest rates.

Keep in mind, money market rates are time-sensitive in nature, therefor you may want to refer to the date of this article for accuracy. As with all money market accounts, the interest rates are variable and are subject to change without notice.

Top 2 MMA (money market account) rates in Alabama:

(click on the institution for more information)

• Citizens Bank: Geneva, Alabama: Money market account yielding 2.05% APY with a minimum deposit of $10,000. They are also advertising a “Star Rewards Checking Account” which is yielding 4.41% APY on balances up to $24,999. If you are unfamiliar with rewards checking account, you may want to review the requirements that are typically associated with them before signing up. Citizens Bank serves the greater southeast with over 40 branches in Tennessee, Alabama and Mississippi. They offer a general range of products from loans (consumer, home, auto, etc) to savings accounts (certificate of deposits, money market, interest checking, rewards checking, etc). They also have a wide range of business banking products as well. Contact info: (205) 408-7160 – Burmingham, Alabama office
• Southern States Bank: Opelika, Alabama: Money market account yielding 1.95% APY with a minimum deposit of $5,000. You must maintain a minimum balance of at least $1,500 to avoid a monthly fee of $10. Please note that you will also receive a lower interest rate with that amount as well. You are entitled to six monthly withdrawals (3 of which can be personal check). You will pay a $10 service fee for each additional transaction. Although the name of this bank (Southern States Bank) may lead you to believe this is a regional bank serving a number of southern states, it is not. They have three locations in Alabama only. Their locations are in Burmingham, Opelika and Anniston. Contact: (334) 737-1092

Both of the above institutions are federally insured by either the FDIC or NCUA. If you live in Alabama and know of a better money market rate offered through your local institution, please share by leaving a comment.

Currently, they are offering an interest rate of 4.01% APY paid on all balances up to $100,000, with 1.01% APY paid on balances above that amount.

Thanks to BankVibe reader Sean for sending this one in!

One thing that slightly worries me about this rate is that it became effective back in April Read more...]]> Anyone looking to deposit $100k into a high-yield, FDIC insured, interest bearing checking account? If so, SouthPoint Bank out of Alabama has a great deal on their “rewards checking account.”

Currently, they are offering an interest rate of 4.01% APY paid on all balances up to $100,000, with 1.01% APY paid on balances above that amount.

Thanks to BankVibe reader Sean for sending this one in!

One thing that slightly worries me about this rate is that it became effective back in April and has not been updated since. Interest rates in general, especially savings account rates and CD rates have dwindled drastically since then, so this rate may be on the verge of a drop.

This is a variable rate and is subject to change without notice.

Like all other Rewards Checking Accounts, you will be required to make a certain amount of debit card purchases each month. You will also need to set up at least one ACH auto transfer from this account along with enrolling to receive e-statements to earn this advertised interest rate.

SouthPoint Bank was founded in 2005 as a result of SouthTrust Corporation announcing that regional giant Wachovia was acquiring it. It was at that point that three bankers, bound by commitment to independence and the desire to provide the Birmingham area with a locally based bank, began making plans to open what would become SouthPoint Bank.

Keep in mind, there may be eligibility restrictions with the following institutions (especially with credit unions), so you may want to contact a representative within the institution to see if you are eligible. If Read more...]]> Below are the best CD (certificate of deposit) rates available to residents in the state of Alabama. Because many of the banks and credit unions serving this area are regional ones you may also want to browse through Florida’s CD rates and Georgia’s CD rates as well.

Keep in mind, there may be eligibility restrictions with the following institutions (especially with credit unions), so you may want to contact a representative within the institution to see if you are eligible. If do not reside in Alabama you may still be able to take advantage of some of these products but it will most likely depend on your individual situation (place of work, residence, family relatives, etc).

How did we compile this list? As you are probably aware, higher CD rates tend to accompany longer maturities and since we did not want to strictly list long maturity CD’s we decided to list the deposit rates which beat the national average by the highest margins.

These rates are time-sensitive in nature. Please refer to the date of this article for accuracy. You may want to compare CD rates which are nationally available if these are outdated.

Top 3 CD rates (Alabama):

(clicking on the institution will bring you to their rates page)

Alabama Credit Union: Tuscaloosa, AL. 15 month CD yielding an APY of 2.52% with a minimum deposit amount of $500. The interest on this account is compounded quarterly. This account will automatically renew upon maturity (unless you specify otherwise). Like all credit unions, management is by a Board of Directors made up of persons democratically elected from the membership, by the membership. Board members volunteer their time and effort to ensure the highest standard of services possible to members of the credit union. Profits are passed on to members in the form of higher savings rates and lower borrowing rates.

First National Bank of Talladega: Talladega, AL. 36 month CD yielding 3.0% APY with a minimum deposit of $500. The First National Bank of Talladega was founded in the back room of a mercantile store, in a village of 1,250 citizens and has been open ever since. From it’s beginning in 1848, the bank has grown to over $300 million in total assets and has the distinction of being the oldest continuously operated bank in Alabama. It remains independently home owned and operated and proudly serves Talladega County as its primary trade area.

Farmers Exchange Bank: Louisville, AL. 48 month CD yielding 3.20% APY with a minimum deposit amount of $500. This is a small family owned bank serving Barbour county since 1958. The current president’s grandfather, “Mr. Rob,” put together a group of local leaders to purchase the Farmers Exchange Bank in McCullough, Alabama, and moved it to Louisville. For three generations, Farmers Exchange Bank has offered personalized financial services for Barbour County, and as the only locally-owned and operated bank in the community, they claim to have the flexibility to help you with your needs and dreams.

You may also want to check Redstone Federal Credit Union’s CD rates as well. They are the largest credit union in Alabama and frequently offer promotional rates.

All of the banks/credit unions mentioned above are federally insured by either the NCUA or FDIC and your deposits are secure up to $250k. If you live in Alabama and know of a better CD rate offered by your local institution, please share by leaving a comment.