APY GUY: Maximize Your Savings & Earnings

Money Market

HomeStreet Bank CD Rates – Now up to 4.00% APY!

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image credit: homestreet.com

HomeStreet Bank is a regional bank headquartered in Seattle, Washington serving residents in Washington, Oregon, California and Hawaii.

They were founded in 1921 by W. Walter Williams who managed to keep the bank in the family through four generations.

HomeStreet suffered major losses during the 2008 financial crisis which eventually required them to raise capital through an IPO in 2012 – ending four generations of control by the Williams family.

Today, HomeStreet Bank offers various financial services to both businesses and individuals.

For the purpose of this review, we will focus on HomeStreet Bank’s fixed rate CDs (certificates of deposit) and variable rate money market accounts.

All of the deposit accounts covered in this review are federally insured by the FDIC up to the applicable limits.

HomeStreet Bank CD Rates + Account Details

There are two variables that may affect the APY (annual percentage yield) that you receive on your CD with HomeStreet Bank. These are 1. Location, and 2. Deposit amount.

Before displaying the rates of their CDs, HomeStreet Bank requires you to select your region (you can do that here).

They have regions broken up into four groups – 1. California, 2. Eastern Washington, 3. Hawaii, and 4. Western Washington/Oregon. We should note that we’ve downloaded rate cards from each region and found the interest rates and APYs to be the same throughout. In more favorable interest rate environments, we suspect this would change.

Their rates are also tiered by deposit amount, but like location, all tiers pay the same APYs currently. We will update this post when their rates change.

HomeStreet Bank offers three types of certificates of deposit. These are:

  • Custom and IRA Certificates. Terms ranging from 31 days to 5 years.
  • Featured CDs. Oddball terms such as 11 and 22 months and higher APYs.
  • Jumbo Certificates. Require minimum $90,000.

Interest is compounded daily and credited monthly on all HomeStreet Bank CDs. We should also note that HomeStreet Bank’s CDs automatically renew and you are provided a standard 10 day grace period in which you may add or withdraw funds penalty free. If nothing is done during this time, the CD will renew with the same terms and the going APY.

If you need your funds prior to your maturity date, HomeStreet Bank may impose a simple interest penalty on the amount withdrawn based on the current interest rate being paid on the account.

Custom and IRA CD Rates

Their Custom and IRA CDs offer 9 terms to choose from ranging from 31 days to 5 years. The minimum deposit requirement is $500.

CD Term$500$2,500$5k$10k$25k+
31 days0.10%0.10%0.10%0.10%0.10%
3 months0.15%0.15%0.15%0.15%0.15%
6 months0.20%0.20%0.20%0.20%0.20%
9 months0.20%0.20%0.20%0.20%0.20%
12 months0.20%0.20%0.20%0.20%0.20%
18 months0.20%0.20%0.20%0.20%0.20%
2 year0.20%0.20%0.20%0.20%0.20%
3 year0.20%0.20%0.20%0.20%0.20%
5 year0.20%0.20%0.20%0.20%0.20%

To put the yields shown in HomeStreet Bank’s rate matrix (above) in perspective, the current national average for a 12 month CD and a 5 year CD sit at 0.90% APY and 0.98% APY, respectively, according to FDIC data.

Featured CD Rates

The Featured CDs offer the most competitive yields and as of December 2022 their best offer is an 18 month CD with an APY of 4.00%.

CD Term$500$2,500$5k$10k$25k+
4 months3.25%3.25%3.25%3.25%3.25%
7 months3.50%3.50%3.50%3.50%3.50%
11 months0.25%0.25%0.25%0.25%0.25%
13 months3.75%3.75%3.75%3.75%3.75%
15 months0.25%0.25%0.25%0.25%0.25%
18 months4.00%4.00%4.00%4.00%4.00%
22 months0.40%0.40%0.40%0.40%0.40%
3 years0.40%0.40%0.40%0.40%0.40%
5 years0.40%0.40%0.40%0.40%0.40%

Jumbo Certificate Rates

HomeStreet Bank’s Jumbo CDs come with a minimum deposit requirement of $90,000 and a maximum deposit amount of $240,000. You may hold multiple CDs with HomeStreet, but FDIC coverage applies to just $250,000 per individual or $500,000 on joint accounts.

Jumbo CD TermAPY
30 days0.15%
60 days0.15%
90 days0.15%
120 days0.15%
180 days0.30%
270 days0.30%
365 days0.30%
APY = Annual Percentage Yield

HomeStreet Bank only offers Jumbo CDs with short terms at this time.

Money Market Rates + Account Details

HomeStreet Bank typically offers five different kinds of money market accounts, however two have been discontinued. These accounts feature variable rates that can change at any time without notice. The three available options include:

  1. Money Market. Standard account with minimum deposit requirement of $1,000.
  2. Private Banking Money Market. Higher APY available, must contact a branch to open.
  3. Promotional Plus Money Market. Higher APY available, must open with $10,000 in new money.

Some of the benefits of a money market account with HomeStreet Bank include:

  • no charges for paper or electronic statements
  • ability to write checks
  • access cash with a debit card
  • can use as overdraft protection against checking account
  • FDIC insured

Money Market Rates

The standard money market account comes with a minimum deposit requirement of $1,000 AND a minimum daily balance requirement of $1,000 to avoid a $5 monthly service fee.

BalanceAPY
$1k – $9,9990.35%
$10k – $49,9990.35%
$50k – $99,9990.35%
$100k – $149,9990.35%
$150k – $249,9990.35%
$250k – $499,9990.35%
$500k +0.35%
APY = Annual Percentage Yield

As with their CDs, HomeStreet Bank’s basic money market account pays a flat APY across all balance amounts. To put the yields above in perspective, the current national average for a money market account sits at just 0.29% APY and the national average on a savings account is just 0.24% APY.

Promotional Plus Money Market

HomeStreet Bank’s Promotional Plus Money Market account requires a minimum deposit of $10,000 of new funds to HomeStreet Bank (or from an existing HomeStreet Bank CD that has matured and is in its grace period). Below are the current yields.

BalanceAPY
< $9,9990.35%
$10k – $49,9990.35%
$50k – $99,9990.35%
$100k – $149,9990.35%
$150k – $249,9990.35%
$250k – $499,9990.35%
$500k +0.35%
APY = Annual Percentage Yield

Yields do not currently ascend with higher balances. You can locate a branch here if you’d like to proceed with one of these accounts and open it in person.

Georgia’s Own Credit Union CD Rates – Up to 3.75% APY!

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image credit: georgiasown.org

Georgia’s Own Credit Union is a regional credit union serving Georgians across the Peach State since it opened its doors in 1934.

This credit union is quite small on a national scale but it’s the third-largest credit union in the state of Georgia, with 23 branch locations in metro-Atlanta, Savannah, Augusta, and other cities. 

To join Georgia’s Own – should you decide that it would be a good fit for your long-term financial goals – you’ll need to meet their geography or employment-based membership requirements.

Georgia’s Own Credit Union is not open membership but there are a couple of eligibility loopholes you can use to qualify if you don’t meet the general criteria. We’ll cover this in our eligibility section further down in this article.

Curious how their NCUA-insured savings products stack up? Find out in our comprehensive review below.

Georgia’s Own Credit Union CD Rates + Account Details

Georgia’s Own CDs are federally insured by the NCUA (FDIC equivalent for credit unions) up to the maximum amount allowed of $250,000 per depositor. Joint accounts are covered up to $500,000.

Standard certificate accounts and bump rate certificate accounts, which Georgia’s Own calls “Own Your Rate CDs,” are available for purchase.

CD Rates

CD TermMinimum DepositAPY
6 month$5000.75%
1 year$5002.00%
13 month Special$5003.75%
22 month own your rate$5000.67%
2 year$5002.50%
3 year$5002.75%
44 month own your rate$5000.75%
4 year$5003.00%
5 year$5003.25%

Please note that these standard CD rates can vary depending on balance, however at the present time they do not. Yields are consistent across all deposit amounts.

To put the offers above in perspective, the current national average for a 12 month certificate of deposit sits at just 0.90% APY.

13 month CD Special

This is Georgia’s Own Credit Union’s newest addition to their CD account offers. It holds the highest rate of any of their deposits and automatically renews into a standard 12 month CD if nothing is done during the grace period.

Own Your Rate Savings Certificate (Bump Rate CD)

Bump rate CDs are also available at Georgia’s Own.

You’ll find these under the name of Own Your Rate Savings certificates and these require $500 to open just like their standard CDs.

These certificates come with 22 and 44 month terms that allow you to bump up your rate. You are allowed one bump for the 22 month term, and two for the 44 month term.

Remember, these products are only useful when rates are rising. If Georgia’s Own does not raise their deposit rates during the life of your CD, then the option becomes irrelevant. Also keep in mind Georgia’s Own will not notify of rate increases, so you’ll have to monitor these yourself while you bump CD is active.

How is Interest Compounded?

Interest is compounded and credited monthly or quarterly on 6 month, 1 year, 3 year, and 5 year CDs, but compounded and credited only quarterly on 2 year and 4 year CDs.

Early Withdrawal Penalties

  1. Early withdrawal from a term of 12 months or less will cost 90 days’ interest,
  2. from a term of 13-24 months will cost 180 days’ interest,
  3. from a term of 25-36 months will cost 270 days’ interest,
  4. from a term of 37-48 months will cost 360 days’ interest, and
  5. from a term of 49-60 months will cost 450 days’ interest.

The grace period within which you can make penalty-free withdrawals or deposits upon renewal is 10 days.

Georgia’s Own Credit Union Savings Accounts

There are 5 different savings account options to choose from with Georgia’s Own Credit Union. However, all of them provide the same yields currently. Your 5 options are:

  1. Primary Savings
  2. Holiday Savings
  3. Vacations Savings
  4. Club Savings
  5. Coindexter Club Savings

The Holiday and Vacation savings accounts allow you to automatically set money aside for those intended uses. The funds you save in these accounts are then automatically transferred to your primary account on November 1st and May 1st, respectively, so that the money is available when you need it for those events.

A Club savings account, on the other hand, lets you set aside money for unspecified uses but functions similarly to the Holiday and Vacation savings accounts.

A Coindexter Club savings account is geared towards children learning the value of saving. These can be opened by children up to 13 years old. When this account reaches a balance of $250, the primary account holder receives a free gift.

Interest is compounded and credited quarterly for all savings accounts.

Lookout For Potential Fees

Though technically called an inactive account fee, you’ll essentially be charged a monthly maintenance fee of $5 for every month that your account balance dips below $250. For every excessive withdrawal over the federally allowed limit of 6 per month, you’ll be charged $10.

Savings Rates

BalanceAPY
$5.00 – $49,9990.10%
$50,000 – $99,9990.15%
$100,000 +0.20%

A minimum opening deposit of just $5 is required to open any savings account with Georgia’s Own Credit Union, and any balance above $5 will earn interest.

The initial $5 that you deposit into the Primary savings account granted to you when you join is your share in the credit union, so you’ll need to make sure that that money stays there to keep your membership.

Georgia’s Own Credit Union Money Market Rates + Account Details

The money market rates offered by Georgia’s Own are more competitive than their savings products, but still lag the top rates held by online institutions.

Money Market Rates

BalanceAPY
$2,500 – $9,9990.50%
$10,000 – $24,9990.60%
$25,000 – $49,9990.70%
$50,000 – $99,9990.80%
$100k – $249,9992.00%
$250k – $499,9992.00%
$500k – $999,9992.00%
$1m +2.00%

To put these offers in perspective, the current national average for money market rates sits at just 0.29% APY nationally according to FDIC data.

Avoid a $10 monthly service fee and continue earning dividends by maintaining an average daily balance of $2,500 or more.

As with the savings accounts, for every excessive withdrawal over the federally allowed limit of 6 per month, you’ll be charged $10.

About Georgia’s Own Credit Union + Eligibility Requirements

Georgia’s Own Credit Union holds just shy of $2.5 million in total assets and has a net income of $21 million. 182,756 members bank with this credit union. There are 32 Georgia’s Own Credit Union branches, all of these located in Georgia. This institution also participates in co-op shared branching with other credit unions and shares over 85,000 surcharge-free ATMs across the country.

To be eligible to join Georgia’s Own, you’ll need to meet one of the following:

  1. be a resident of a qualifying Georgia county,
  2. a member of the Georgia’s Own Foundation,
  3. a Georgia resident and member of the Getting Ahead Association,
  4. a family member to someone that’s a Georgia’s Own member, or
  5. an employee/retiree of a qualifying company.
  6. Having ties to Georgia State University – whether you’re a former student, current student, or member of faculty or staff.

To become an Advocate with the Georgia’s Own Foundation you’ll need just $10 and anyone can join. This is the biggest loophole for non-Georgia residents to join.

To become a member of the Getting Ahead Association, you’ll need to be a Georgia resident and you can contact a Georgia’s Own representative for help joining.

Georgia’s Own has mobile banking apps available for download for Apple and Android mobile devices, and these are generally considered to be user-friendly and comprehensive based on customer reviews.

Final Thoughts

Georgia’s Own Credit Union is probably going to be best suited for individuals living in or around Georgia.

Their savings account rates are below the national average, however their money market rates and CD rates are becoming more competitive (albeit still behind the top yields found from online banks and other nationally available credit unions).

Connexus Credit Union CD Rates – Up to 4.85% APY!

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image credit: connexuscu.org

Founded in 1935 in Wausau, Wisconsin, Connexus Credit Union got its start as an employee-only credit union serving individuals and families affiliated with Employers Mutual, which later became the insurance giant Liberty Mutual.

As with many credit unions that stand the test of time, Connexus credit union experienced growth through acquisition. Over the years they acquired a number of smaller credit unions that allowed them to broaden their membership eligibility to what it is today.

Today, Connexus credit union serves roughly 360,000 members in all 50 states with over $2.8 billion in assets and just shy of $2.5 billion in consumer deposits.

Connexus credit union has also been nationally recognized over the years for consistently offering high deposit rates on both variable and fixed rate accounts, as well as exemplary customer service.

Connexus Credit Union CD Rates + Account Details

Connexus credit union offers both IRA CDs and standard CDs with terms ranging from 12 months to 5 years. Both their IRA CDs and standard CDs currently feature the same APYs for their respective terms.

Connexus Credit Union’s deposit products are federally insured by the NCUA (FDIC equivalent for credit unions) up to $250,000 per depositor or $500,000 for joint accounts.

All of their certificates of deposit require a minimum deposit of $5,000.

CD Rates

CD TermAPY
12 months4.51%
15 month Special4.85%
24 months4.01%
36 months3.71%
48 months3.51%
60 months3.51%

To put these offers in perspective the current national average for a 12 month CD and a 60 month CD sit at just 0.90% APY and 0.98% APY, respectively, according to recent FDIC data.

The 15 month Special CD will automatically renew into a 12 month CD if nothing is done during the grace period.

Grace Period and Early Withdrawal Fees

You’ll be given a 10 day grace period upon maturity of your deposit where you can either withdraw or deposit funds penalty free.

If you need to withdrawal money from this deposit prior to its maturity you will be subject to the following early withdrawal fees:

  • For the 12 month certificate, you’ll pay 90 days’ worth of dividends.
  • For the 24-month and 36-month certificates, you’ll pay 180 days’ worth of dividends.
  • For the 60-month certificate, you’ll pay 365 days’ worth of dividends.

Money Market Account Rate + Details

Connexus Credit Union offers some highly competitive money market rates if you:

  1. keep a high daily active balance in the account of $50,000 or more, and
  2. have an active checking account with them, and
  3. open a basic Regular Savings or Youth Savings account and fund it with at least $5.

Keeping an active checking account will likely be the hardest qualification to meet if you are new to Connexus Credit Union and already conduct checking elsewhere.

Connexus Credit Union defines an active checking account as a single checking account with Connexus under the same membership with:

  • Direct Deposit of net pay, including salary, wages, government benefits, or pension made to the account each month;
  • having ten (10) checks, ACH withdrawals, and/or debit card transactions clear the account by the last business day of each month;
  • and electing to receive eStatements. ATM transactions not included.

Money Market Rates

BalanceAPY
$0 to $999.990.00%
$1k – $19,999.990.25%
$20k – $99,999.992.01%
$100K – $249,999.992.51%
$250k – $499,999.993.01%
$500k – $999,999.993.41%
$1m +4.01%

To give the APYs above more context, the current national average for a money market account sits at just 0.29% APY currently.

The minimum deposit requirement for a money market account with Connexus credit union is $1,000. Interest is compounded monthly and credit monthly. There is no monthly maintenance fee associated with this account.

Outside of the checking account requirement there are a few other oddball rules tied to Connexus credit union’s money market accounts.

  1. If you make a cash withdrawal it must be at least $250.
  2. You may write checks with this account (if you order a box of checks for $16.90/100 checks), BUT you are allotted just three per month. Every check after the third will cost you $29.95 per check.

You can also only make a total of six transactions per month. This includes check, ACH, digital transfer or telephone transfer. This is par for the course for money market accounts and demand deposit accounts in general, per Federal Regulation D. If you need to get around these limits, you can make unlimited transactions through an ATM or at an in-person Connexus branch. Connexus is a part of a shared branch network featuring over 6,000 branch locations across the country.

Health Savings Account Rates + Details

Connexus Credit Union’s Health Savings Account features some of the most competitive rates in the country currently if you can maintain a balance of $5,000 or more.

A HSA (Health Savings Account) from Connexus credit union will allow you to put money aside on a pre-tax basis for qualified medical expenses that may arise in your life. These accounts earn impressive dividends and your money rolls over from year to year if you don’t use it.

To be eligible for an HSA account through Connexus credit union you must meet the following requirements:

  • You are covered under a High Deductible Health Plan (HDHP)
  • You have no other health coverage except what is permitted under “Other health coverage,” listed on IRS.gov
  • You are not enrolled in Medicare
  • You cannot be claimed as a dependent on someone’s tax return

Contribution Limits

20212022
Single$3,600$3,650
Family$7,200$7,300

Contributions can be made by either you or your employer up to the maximum limit specified by law. Individuals age 55 and older can make an additional $1,000 catch-up contribution.

Health Savings Account Rates

BalanceAPY
$0 to $99.990.00%
$100 to $499.990.50%
$500 to $2,499.991.00%
$2,500 to $4,999.991.00%
$5k to $14,999.991.50%
$15k +2.00%

Connexus Credit Union Eligibility

Connexus Credit Union offers its services to customers nationwide. It has four paths to membership. The first three are the easiest/fastest ways to join, followed by the fourth way which is essentially a loophole for any US citizen to join. The four paths to membership are as follows:

  • Employees, retirees, family members, or members of one of the following groups, or
  • Residents of one of the following communities, or
  • Spouses, family members, and those living in the same household of an existing member, or
  • Members of the Connexus Association. This just requires a one-time $5 donation.

Applying for membership is a straightforward process. You will need:

  • Valid Driver’s License/State ID/Passport
  • Valid United States Social Security Number
  • Account information for accounts that you would like to close and/or transfer money from.

Final Thoughts

If you value top-notch rates from a member-centric credit union, then Connexus credit union deserves your consideration. They’ve been nationally recognized for abnormally high rates and outstanding service by CNN Money, Kiplinger, PC Magazine, BankRate, the AARP and more.

Both their native apps for Apple and Android receive high marks in their respective app stores. Averaging a 4.7 star rating out of 5 for Apple and a 4.7 star rating out of 5 for Android.

That said, one of their highest yielding accounts (the money market account) comes with some potentially difficult hoops to jump through. However, if you are able to open and maintain an active checking account with them (the prerequisite to opening their money market account) you’ll be rewarded with some of the best yields available on the money market side.

Redneck Bank Review – Up to 4.25% APY!

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Redneck Bank is a real, online-only bank with a humorous approach to banking.

The institution was originally founded in 1969 in Oklahoma City, Oklahoma. And even though they are an online bank today, the Huckabay family that owns Redneck bank has been involved in banking since 1927.

Their website showcases a light-hearted, friendly brand with a rural and fun feel to it. Upon loading the page, you’ll see animated goats, pigs and even a fly buzzing across the screen that you’ll be tempted to shoo away. If the volume is turned up on your device, you’ll notice this display comes complete with sound effects to boot.

All that to be said, the bank has two very competitive products that are FDIC-insured up to the applicable limits.

These are a:

  • Mega Money Market Account, and a
  • Redneck Rewards Checkin’ Account

To see if either of these high yield online deposit products are right for you, continue reading our comprehensive review below.

Mega Money Market Account APY + Details

No muckin’ around with these rates!

The Mega Money Market Account by Redneck Bank features a VISA debit card and access to thousands of ATMs worldwide. Wallet style checks are also available upon request.

The account currently pays a whopping 4.00% APY on balances up to $75,000 and just 0.50% APY on balances beyond that.

The account comes with a minimum deposit requirement of $500, however, once the account is opened there are no monthly balance requirements or monthly maintenance fees.

Mega Money Market Rate

BalanceMin DepositAPY
$0 – $50,000$5004.00%
$50,000 +0.50%

To put the rates above in perspective the current national average for a savings account sits at just 0.24% APY and the current national average on a money market account is just 0.29% APY, according to FDIC data.

Account Features, Capabilities and Details:

  • Bank to bank transfers
  • Person to person transfers
  • Direct Deposit
  • Mobile Deposit
  • Visa debit card
  • Wallet style checks – available upon request.
  • Overdraft Protection – must opt in to this feature.
  • 6 free withdrawals or transfers in person or at ATMs. After these 6 free debits per month, Redneck Bank will charge $5 for each debit after the sixth per monthly statement cycle.
  • 10 free Online Bill Pay transactions per month; $0.50 charge for each transaction after.
  • Free eStatements with transaction images available to view online.

Redneck Rewards Checkin’ Account APY + Details

Be sure you can meet the account requirements to earn the advertised APY.

The Redneck Bank Rewards Checkin’ Account is similar to the money market account but with four major distinctions:

  1. The high APY of 4.25% is only applied on balances up to $15,000.
  2. You must make 10 debit card transactions with your Redneck Bank Visa Debit Card per monthly statement cycle to earn the advertised rate.
  3. You must receive statements electronically.
  4. Added Bonus: Redneck Bank will refund up to $25 of foreign ATM fees each monthly statement cycle in one lump sum.

All balances above $15,000 will earn 0.50% APY. Also, if you fail to meet point 2 or 3, you will earn just 0.25% APY on your balance.

Outside of the four major differences listed above, the Rewards Checkin’ account comes with all the same features and capabilities as the money market account.

Reviews and Customer Sentiment

Redneck Bank scores fairly well with consumers averaging between a 3.5 and 4 star rating out of 5 on major financial publications such as NerdWallet and DepositAccounts.

Their IOS app has just 13 reviews and scores an average 3.7 star rating out of 5 while their Android App has a lower 2.6 star rating out of 5 with only 29 reviews as of the time of this writing. To put this in perspective the average banking app on the Apple and Google Play stores scores a 3.9 star rating out of 5 according to this report.

Final Thoughts

At first glance of this company’s website, you may feel immediately inclined to write them off as an unserious or potentially even fake. But once you dig into the actual deposit account offers and pit them against the current products on the market, you begin to see these offerings are rather exceptional.

If you’re in the market for a variable-rate, online deposit account with easy access to cash via a debit card and a highly competitive APY, then this kooky online bank may be a great fit.

That said, if you value in-person banking and a full suite of banking products, then Redneck Bank likely won’t meet all of your needs.

Redneck Bank FAQs

Still have questions about Redneck Bank? See what other consumers are asking around the web along with our responses below.

Is Redneck Bank a Real Bank?

Yes! Despite the quirkiness, Redneck Bank is a real bank. They are the Internet Banking Division of All America Bank. Their FDIC number is 20093.

What is Redneck Bank’s Routing Number?

The routing number for Redneck Bank is 103113182.

Paramount Bank 12 month CD: 0.75% APY + 0.85% APY Interest Checking

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[Update January 21, 2021 – Paramount Bank’s interest checking and money market account now provide a highly competitive yield of 0.85% APY and 0.50% APY, respectively. Fixed rate CDs remain unchanged to start the new year.]

[Update: August 7, 2020 – Paramount Bank lowered the APY on their 6 month and 12 month CD to 0.50% APY and 0.75% APY, respectively. The variable rate, interest checking account also had its APY lowered to 0.85%. ]

[Update: March 31, 2020 – Paramount Bank lowered its interest checking account APY from 1.25% to 1.00%. They also lowered their 6 month and 12 month CD rates to 1.25% and 1.00% APY, respectively.]

Update: March 13, 2020 – After lowering their rates across the board in early March, Paramount Bank again lowered most of their rates again this week, however, they kept the APY on 6 month and 12 month CDs to 1.50% APY and 1.25% APY, respectively. Paramount Bank still has one of the deepest inverted yield curves we’ve seen from a single financial institution since the FED’s recent rate cut of 0.50%.]

Some of the accounts offered by Paramount Bank still hold respectable APYs that are above the current national average, but more lucrative rates can be found elsewhere online.

Paramount Bank has 11 locations in 9 states with headquarters in Hazelwood, Missouri. Their savings products are available nationwide and can be opened online.

Paramount Bank is FDIC-insured up to $250,000 against bank insolvency.

Paramount Bank’s Current CD Rates

Paramount Bank’s certificate of deposit product line comes with terms ranging from 6 months to 5 years and has a minimum deposit requirement of $1,000 and a maximum deposit allowance of just $100,000.

Their CDs can be held in IRA accounts or as stand alone deposits and the yields are the same for each.

Paramount Bank CD Rates:

CD TermAPYMinimum Deposit
6 month0.50%$1,000
12 month0.75%$1,000
18 month0.75%$1,000
24 month0.75%$1,000
36 month0.75%$1,000
48 month0.75%$1,000
60 month0.75%$1,000

To give the yields above some context, the current national average on a 12 month CD and a 60 month CD sit at just 0.15% APY and 0.32% APY, respectively, according to FDIC data.

How your interest is calculated and paid:

The interest on your CD is paid out monthly, however, we have not been able to confirm if the interest is accrued daily or monthly. We’ve reached out to the bank but have yet to hear back.

You can learn more about Paramount Bank’s CDs here.

Paramount Bank’s Money Market and Interest Checking Rates

Paramount Bank’s interest checking account earns one of the highest APYs we’ve seen on a variable rate, FDIC-insured deposit account so far in 2021.

This account currently pays an APY of 0.85% on all balances up to $500,000 which beats the national average of 0.07% by several multiples. It also sits comfortably ahead of some of the top online savings account rates which hover around the 0.50% APY mark.

The account has no minimum balance fees and a minimum deposit requirement of just $100.

As with most interest checking accounts, the rate is variable and subject to change at any time without notice.

Paramount Bank’s money market account comes with a less attractive annual percentage yield (APY) and fees for dipping below the minimum balance threshold.

The rate sits at just 0.50% APY and comes with a $2,000 monthly balance requirement to avoid a $10 monthly fee.

Similar to the interest checking account the minimum deposit requirement is $100, but be sure to keep an average monthly balance of at least $2,000 or the $10 fee will cut into your interest earnings, and could even eat away at your principal.

If you’re looking to earn some interest on cash balances with your small business, then you might want to consider Paramount Bank’s business money market account. It also earns a competitive APY of 0.75% but comes with a monthly minimum balance requirement of $5,000 to avoid a $20 monthly fee.

About Paramount Bank

Paramount Bank originally started out as an independent mortgage company in 1970.

A group of local investors based out of St. Louis rebuilt the bank in 2004 with a focus on online products – namely high yield certificates of deposit and savings accounts.

They have 11 locations throughout the country in the following states: Arizona, California, Florida, Illinois, Iowa, Kansas, Missouri, Ohio and Texas.

For all banking inquiries, reach out to 833-731-0229.

Final Thoughts

Paramount Bank’s current APYs beat the national average by considerable margins for both their variable rate and fixed rate deposit accounts.

The interest checking account has the highest yield, but keep in mind this is a variable rate product subject to change at any time.

Their fixed rate CDs offer competitive rates for each term, although the yields are currently providing a flat APY of 0.75% from 1 to 5 year durations.

Deposit Accounts 101 – Everything You Need to Know

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Deposit accounts are bank accounts held at banks and credit unions that allow for safe-keeping of your funds.

Most of these accounts also provide interest while your funds are held, but some accounts like everyday checking accounts, may not.

These accounts come in two distinct types:

  1. ⏲️ Time Deposits
  2. 🏦 Demand Deposits

Time deposits, such as certificates of deposit, limit access to your funds for a fixed amount of time in exchange for interest paid to you. 

Demand deposits such as money market and checking accounts, provide access to your funds ‘on-demand.’ The bank or credit union will let you withdraw the entirety of your sum without needing permission from them.

You’ll want to note that while the bank or credit union can’t stop you from accessing your funds in demand accounts, they can impose strict fees for doing so. 

There are two primary benefits of deposit accounts:

  1. 🔐 Security
  2. 💰 Interest (APY)

Security. Although these waters haven’t been tested since the bank collapse of 2008, you can rest easy knowing your funds will be there when you need them. FDIC insurance (NCUA for credit unions) backs up all deposit accounts in the event of credit union or bank failure to the tune of $250,000 per depositor. For joint accounts, deposits up to $500,000 are insured ($250,000 x 2 depositors = $500,000 FDIC coverage).

Interest. Since the bank is using your deposit for commercial endeavors – namely, to loan out to borrowers – it only makes sense that you get a kick back in the form of a dividend for your part in the equation. 

Banks and credit unions compete for consumer deposits with attractive interest rates. The longer the consumer keeps his/her funds with the bank, the higher the interest rate and APY (annual percentage yield) they will receive.

On fixed deposits like CDs, rates generally ascend with terms. So longer duration CDs like 5 year deposits provide higher returns than 12 month deposits. And why shouldn’t they? Consumers should be increasingly rewarded with the duration in which the bank gets to hold their funds.

But that’s not the only reason your money earns more over time. The second factor is “compounding interest.”

Depending on the specific institution you’re banking with, interest is usually compounded daily, weekly or monthly with the proceeds being re-deposited into the account to ‘compound.’ The more frequent the compounding (daily, weekly, monthly) the higher your overall APY or annual percentage yield will be. That’s why when comparing deposit accounts you always want to look at the APY rather than the interest rate to calculate your bottom line earnings.

Now that we understand some of the nuances of deposit accounts, let’s dive into the specifics of each account type.

Certificates of Deposit (Time Deposit)

Certificates of deposit are fixed-rate, time deposits that generally come with terms between 3 months and 10 years. With these accounts you will not have access to funds prior to the deposit’s maturity date. If you do need access, you will incur a fee. These fees generally eat away at some, most, or even all of the interest you’ve accrued on your deposit. In most cases, these fees won’t eat away at your principal, but you’ll have to check with the institution’s fine print to make sure this holds true for your bank of choice.

You’ll also want to set a reminder for yourself to let you know when your CD is about to mature. Banks and credit unions have “grace periods” upon maturity, that generally last around 10 days. During this period you can change the deposit terms or move your funds fee-free to another account. If left untouched, the funds automatically renew into the same deposit product.

When should someone open a certificate of deposit?

  • In a falling interest rate environment. Timed deposits come with fixed rates. This can be a good thing or a bad thing depending on how interest rates are trending. In a falling interest rate environment certificates of deposits are a great strategy. In this environment look for longer term maturities to ride out the interest rate downturn. Conversely, in a rising interest rate environment variable rate products are better as their rates rise with the tide.
  • When promotional or ‘special term’ deposit products are offered. Some banks and credit unions have promotional deposits that can come with cash bonuses or extremely high rates on certain balances. These should always be considered when looking for FDIC-insured savings vehicles. Some credit unions, and online banks in particular, also offer deposits with special terms such as “No Penalty CDs,” which allow for penalty free access to your funds, or “bump-up” or “step-up CDs” which allow for your rate to rise during the life of the CD. It should be noted that step-up CDs are similar but not identical to bump-up CDs. For bump-up CDs the consumer specifies when the rates get a bump and with step-up CDs the rates rise at intervals set by the financial institution.
  • When you don’t need access to your money. Just be sure to pick a term you’re comfortable with as early withdrawal penalties are steep. Also, double check online savings account rates and money market rates before locking in a fixed rate CD. They may be more lucrative than the particular CD term you’re after.

IRA CD (Time Deposit)

IRA CDs are certificates of deposit held within your individual retirement account. Much of what we covered (above) applies to IRA CDs as well, just note you’ll have the added tax-advantage that IRAs offer.

Credit Unions and banks (both offline and online) as well as brokerage firms all offer IRA CDs. They can offer these in the form of traditional IRAs or Roth IRAs.

You’ll want to note that the IRS takes 10% of all sums withdrawn from an IRA account prior to the owner turning 59 and a half. They will make some considerations for new home purchases, emergency or unforeseen payments, and others.

When should someone open an IRA CD?

See above as the same conditions that apply for standard CDs also apply for an IRA CD. 

Be sure to set notifications for grace periods on deposits held within IRA accounts if you plan on moving the funds upon maturity as these can be easier to forget.

Money Market Account (Demand Deposit)

Looking for competitive rates AND access to your money? Try a money market account. 

Unlike CDs, these are demand deposits that allow for full access of your funds – at your demand. 

Accessing your money can generally be done through ATM/debit cards or checks. ACH transfers are also permissible. Just note that per federal regulation D, only six transfers are allowed per month. Check with your individual institution on the fee structure beyond six as it varies. 

Minimum deposit and/or monthly balance requirements for these accounts are generally steeper than traditional savings accounts. In normal interest rate environments rates are tiered so that larger balances receive higher APYs. In less competitive savings environments rates tend to be flat across all balances.

When should you open a money market account?

  • When you have larger sums of money and want to earn a respectable interest but still have access to your funds.
  • In rising interest rate environments. Money market accounts tend to offer higher APYs than standard savings accounts but often require higher balances. Rates are variable and rise and fall with the overall interest rate environment.

Savings Account (Demand Deposit)

Like money market accounts, savings accounts are on demand deposit accounts that provide access to your money and an interest on your balance. 

Access to your funds isn’t quite as easy as it would be with a checking account, but it’s still available to you if you need it. Some accounts offer ATM or debit cards as well as check writing capabilities, but most online savings accounts do not. 

With online savings accounts you generally get a top tier interest rate but access to your funds is usually restricted to ACH transfers. Again, this varies by institution so check with your bank of choice prior to opening an account.

Same federal Regulation D regulations apply to savings accounts as they do with money market accounts, limiting you to 6 ACH transfers per month. Transfer fees will apply to anything beyond that and, in some cases, your account can be shut down or transitioned into a checking account.

When should you open a savings account?

  • When you want to separate funds designated for savings from your everyday spending money. Savings accounts are great for slowly building up funds for a later date. Whether you’re saving for an emergency or a big ticket item you wish to purchase in the future, savings accounts are great tools to use to achieve these goals.
  • When you want to safely earn an interest on your savings. Like all other deposit accounts, savings accounts are FDIC or NCUA insured up to $250,000 per depositor. APYs on these accounts, especially online savings accounts, can be quite competitive in normal interest rate environments.

Checking Account (Demand Deposit)

Checking accounts are your everyday bank account. They are used for withdrawing and depositing funds. You can access money easily with a debit or ATM card, check or online transfers. Funds can be deposited digitally via a mobile app or direct deposit from your employer. They can also be deposited physically with cash or check.

You won’t receive much interest on these accounts compared to other deposit accounts, but we have seen promotions featuring cash bonuses for signing up.

If you decide to open a checking account with a large national bank, beware that many impose monthly maintenance fees up to $15/month. Especially for accounts that don’t meet certain balance and/or activity requirements. 

When should you open a checking account?

  • When you need to open your first bank account. Because these accounts are designed for your everyday banking needs, it’s likely the first account we open with a bank or credit union. These accounts usually come with tools to help you learn about saving and budgeting as well as facilitate your everyday banking needs.

Rewards Checking Account (Demand Deposit)

These are eye-catching accounts that first started popping up in the product suite of local and community credit unions. The rewards these accounts feature can definitely grab your attention, but be cautious of the fees and activity requirements.

The rewards come in the form of cash bonuses or abnormally high interest rates. The interest rates can be upwards of 3 – 4% APY in this environment, but they’ll likely cap that yield to balances of $10,000 or less.

Here’s what is generally required of the consumer to obtain these rewards:

  • Usually 10 to 15 debit card transactions from the account are required. Meaning this will likely have to be your primary account, potentially even replacing your basic checking account.
  • You’ll likely have to set up at least one direct deposit OR one automatic ACH automatic withdrawal from the account. So a direct deposit from your employer or an auto pay on your mortgage, student or car loan would likely suffice.
  • You’ll also have to go mostly (or completely) digital as the accounts require the use of self-service options like e-statements or online bill pay at least once per month.

As you can see this is no easy feat to obtain the flashy rewards. However, if you can meet the requirements, they may be worth a look.

When should you open a rewards checking account?

  • When you’ve demonstrated to yourself that you can meet the monthly requirements of the rewards account through your everyday checking, then it may be worth switching over.
  • When the rewards checking account comes without so many strings attached. Occasionally less cumbersome versions of these rewards checking accounts hit the market and can be considered after reading the fine print.