[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 Term||APY||Minimum Deposit|
[Update: On or around March 30, 2020 Paramount Bank lowered the rates of their 6 month and 12 month CDs by 0.25% APY to the current yields you see in the table above.
Update: On or around March 9, 2020 Paramount Bank made major changes to their deposit rates. Prior to this date longer maturities (ie 36 months – 60 months) held higher rates. A significant inverted yield curve is now present.]
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 still offers a respectable APY although the rate saw numerous drops in the month of March. This account currently pays a 1.00% APY on all balances up to $500,000 which beats the national average, but still loses out to several online institutions such as Vio Bank and TAB bank by a significant margin.
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 0.75% 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 holds a 1.00% APY) 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.
While Paramount Bank has offered very lucrative yields in the past, the current rates on their deposits and money market accounts are below those offered by other online institutions.
The money market account also comes with a $10 monthly fee that could easily eat away at your interest if you don’t keep your average balance above $2,000 for the month.
There are a plethora of FDIC-insured money market accounts that can be opened online with zero fees or minimum balance requirements, so there is no need to burden yourself with this requirement if you feel you can’t keep it.
If you’ve opened a deposit, interest checking, or money market account with Paramount Bank in the past, we’d love to hear your thoughts in the comment section below.