We noticed today that Crestmark Bank is not taking new CD money which we thought was a little strange. They generally offer competitive rates and as of yesterday had the best 3 month CD rate on the BestCashCow rate tables. I called them to learn more and spoke with Gus Mattia, a Senior Vice President and the bank's Controller.
Mr. Mattia told me that all is fine at Crestmark and that pulling out of the market is something they do from time-to-time when they get behind in processing paperwork. He also told me that Crestmark has no exposure to the subprime market or even the consumer lending market. They do not do consumer loans. Instead, Crestmark lends to businesses for such things as factoring receivables, dealing with seasonal cash flow issues, funding sales growth, and more. Mr. Mattia told me they have been in operation for 12 years, are profitable, and are well capitalized.
He also told me that they will probably start accepting cd deposits again in the next two to three days once they are caught up with the paperwork.
Crestmark Bank has a Bauer rating of 3 1/2 starts out of 5.
Meanwhile, find the best online CD rates here and the best online savings rates here.
Comments
ktexas
October 24, 2008
Yup, I can confirm that they've had these on and off periods for the last two years. They'll have attractive short-term rates for a few weeks, and then all of their rates show 0% for a while. When I called I was told the same thing. When the interest rate is 0%, they're no longer accepting deposits.
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