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Colonial Bank Offers 2.50% On 1-Year CDs

Posted in CD Rates by DealMaven
June 27, 2009 08:45 AM - 4 Comments

This southern bank has come up with one of the best CD rates around for short-term deposits.

Colonial Bank is offering 2.50% APY on a 12-month certificate of deposit with a minimum deposit of $500.

Colonial BankThat’s better than the top-paying nationally available rate of 2.30%, and more than twice the national average of 1.16% for a one-year term.

In fact, it’s more than many banks are paying on 24-month CDs.

Colonial Bank, a division of Montgomery, Ala.-based Colonial BancGroup, Inc., has more than 340 offices across Alabama, Florida, Georgia, Nevada and Texas.

That’s a good thing because you have to buy these CDs in person.

It’s more than a little annoying that Colonial does not publish CD rates on its Web site. But it does have a bank locator so you can find the branch nearest you.

You can also call 1-877-502-2265 to make sure this interest rate is still available before you make the trip.

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Comments (4)
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  1. tina said:
    on June 27th at 11:19 am

    Does it not seem unusual that they are offering better rates when they are in trouble with FDIC? Am I the only one this seems fishy too?

  2. Ben said:
    on June 27th at 12:33 pm

    You’re not the only one who sees this as unusual! In fact, I see it as downright alarming!!! How could a bank in their condition even consider offering above market rates? Perhaps they believe building their deposit base will make them a better take-over candidate.

  3. Quita said:
    on July 27th at 04:53 pm

    No, we are trying to increase our deposit base and do NOT want to be taken over.

  4. jmkeynes said:
    on July 31st at 02:01 pm

    Colonial is currently operating under a cease and desist order from the FDIC and has been prohibited from taking in additional brokered deposits. Between the FDIC oorder and Colonial’s skyrocketing non-performing loans, I estimate this bank will be seized by the FDIC within months. Unless you want to deal with the hassle of retreiving your deosits from the FDIC or whatever bank Colonial gets merged into, you are better off putting your money elsewhere. This bank is dead, a zombie…The stock is trading at $0.60, down 98% from $25 a few years ago. Insolvent financial institutions do not deserve your money.

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