Luana Savings Bank, founded in 1908 and based out of Northeastern Iowa, is the 9th largest bank in Iowa with just over $2 billion in assets.

They have 6 locations with their flagship branch being in Luana, Iowa. The other 5 branches are located in the following cities (all within the state of Iowa):

• Ossian
• New Hampton
• Polk City
• Clive
• Norwalk

They offer a wide range of services including:

• Deposit Accounts – CDs (certificates of deposit), checking accounts, money market accounts, savings accounts, IRAs (individual retirement accounts) and HSAs (Health Savings Accounts).
• Personal and Business Loans – personal loans, mortgage loans and refinance, real estate, auto, commercial, agricultural, and debt consolidation.

The also offer additional services such as:

• crop insurance
• bookkeeping
• community involvement

For the purpose of this review, we will focus on Luana Savings Bank’s deposit accounts – namely their competitive CD rates and money market account.

Despite Luana Savings Bank’s small regional footprint, their CDs and money market accounts can be opened online by consumers in all 50 states.

Luana Savings Bank is member FDIC and all deposits are federally insured up to the applicable limits.

Luana Savings Bank CD Rates + Account Details

Luana Savings Bank offers 15 CDs with terms ranging from 3 months to 8 years. Of the 13, 2 are promotional CDs that come with their most competitive yields as well as a minimum deposit requirement of $5,000. Their standard CDs only require a minimum deposit of $2,000, however, slightly higher rates apply to deposits of $100,000 or more. See table below for details.

(Promotional) CD Rates

CD Term	APY
11 month	4.51%
17 month	4.81%

To put these offers into perspective, the current national average for 12 month CDs sits at just 1.21% APY according to FDIC data.

That said, top yields from online banks and nationally available credit unions are now topping 4.50% APY following the FED’s latest rate hike of 0.25% on February 1st, 2023.

The 11 month CD renews into a standard 12 month CD upon maturity and the 17 month CD will renew into an 18 month CD if nothing is done during the 10 day grace period following your CD’s maturity. You can read more about the grace period below.

(Standard) CD Rates

CD Term	Min. Deposit	APY
3 months	$2,000	3.44%
3 months	$100,000	3.55%
6 months	$2,000	3.68%
6 months	$100,000	3.79%
12 months	$2,000	3.84%
12 months	$100,000	3.94%
18 months	$2,000	3.99%
18 months	$100,000	4.09%
24 months	$2,000	4.24%
24 months	$100,000	4.35%
30 months	$2,000	4.24%
30 months	$100,000	4.35%
36 months	$2,000	4.19%
36 months	$100,000	4.30%
42 month step up*	$2,000	3.99%
42 month step up*	$100,000	4.09%
48 months	$2,000	3.63%
48 months	$100,000	3.73%
5 years	$2,000	3.12%
5 years	$100,000	3.23%
6 years	$2,000	2.92%
6 years	$100,000	3.02%
7 years	$2,000	2.72%
7 years	$100,000	2.83%
8 years	$2,000	2.52%
8 years	$100,000	2.62%

To put these yields into further perspective, the current national average for a 24 month CD and a 60 month CD both sit at 1.21% APY according to the FDIC.

Compounding and Crediting Interest

With Luana Savings Bank, interest is both compounded and credited back to your CD on a semi-annual basis.

Many banks offer a more competitive compounding schedule featuring daily compounding interest that is credited back to the account monthly.

Grace Period and Early Withdrawal Fees

Luana Savings Bank CD’s come with a 10 calendar day grace period in which you may close out your CD or change its term or dollar amount. If nothing is done during this 10 day window your CD will automatically renew for the same term and the going APY at that time.

📌 Please Note: Luana will send you a notice 10 days prior to your CD’s maturity to remind you of its upcoming end date.

If you need access to the funds in your CD prior to its maturity, you will incur an early withdrawal fee.

We spoke to a customer service representative from the main branch in Luana to better understand the early withdrawal fee.

Here’s what we learned:

• Luana just changed their early withdrawal fee structure in the second half of 2022.
• Luana Savings Bank now allows for both full and partial withdrawals of your CD (with penalty fees).
• To calculate your early withdrawal fee , multiply the amount you need to withdraw by half of your CD’s interest rate.

So for example, if you have $100k in a 12 month CD earning 3.94% APY and you need to take out $5,000, first divide the interest rate in half which would be 1.97%, then apply that rate to the $5,000 which would come out to $98.50.

Money Market Account

Luana Savings Bank’s money market account is their other competitive deposit account. Unlike their CDs, the money market account comes with a variable interest rate that can change at any time.

It has a minimum deposit requirement of $2,500 and requires you to maintain that balance to avoid a $10 monthly fee.

Higher balances tend to pay higher yields. See the table below.

Balance	APY
$0 – $49,999.99	2.63%
$50,000 – $99,999.99	2.73%
$100,000 – $249,999.99	2.84%
$250,000 – $749,999.99	2.94%
$750,000 and above	3.04%

To put these yields into perspective, the current national average for money market accounts sit at just 0.44% APY according to the FDIC, however top rates from online banks are now inching over the 4.00% APY mark on all balances.

How to Open an Account

You can apply online to open any of the accounts listed in this review. The application process (found here) can be completed in minutes and only requires your personal information. You’ll need to following information handy to complete the process:

• Email
• Phone
• Address
• Social Security Number
• Driver’s License

Once you’ve completed your application and submitted it, Luana Savings Bank will reach out to you within 2-3 business days with your options to fund the CD. You can make an electronic transfer or mail a physical check.

If you’re going to make a transfer, you’ll want to have the following information available.

• Current bank or credit union’s routing number
• Current bank account number where funds will be transferred from