Corus Bank 2.89% 12-month CD

Chicago’s Corus Bank is offering a respectable 2.89% APY on a 12-month CD with a minimum deposit of $10,000.

Although the minimum deposit is a bit steep, you’ll earn nearly twice the national average for one-year CDs.

Corus is a member of the FDIC, so your money should be safe.

But anyone taking advantage of this deal should realize it’s in big trouble and operating under special oversight by the Federal Reserve Bank of Chicago and Office of the Comptroller of the Currency.

Corus poured way too much money into condominium construction loans during the housing boom in Florida, Nevada and Arizona. Now the developers of those projects are defaulting because they can’t sell the units.

(Don’t miss the latest on our personal finance blog, including a new report on how badly the markets have battered baby boomers’ savings just a few years before they’re supposed to retire. Just click on the “finance” tab at the top of the page or here to go Bankaholic’s Personal Finance Blog.”)