Great Florida Bank is offering a 6-month promo CD that yields 1.40% APY. That's the best 6-month cd rate according to the BestCashCow rate tables as of April 14, 2010.
A minimum balance of $10,000 is required in order to receive the promo rate. The CD can be opened nationally online or in one of their branch locations. The bank operates 29 branches in the Miami area.
In addition to the 6 month promo rate, the bank is also offering competitive rates on several other CD terms. They include:
12-Month CD: 1.65% APY
18-Month CD: 2.05% APY
While these are competive CD rates, it may make more sense to invest in a savings or money market account instead of a short-term CD. Many believe rates are on the rise (although we have yet to see that on BestCashCow) and savings and CD accounts offer higher rates with greater flexibility and liquidity. For example, Everbank has a promotional offer for new money that pays out a guaranteed 2.25% APY for the first three months after the account is opened. The rate then drops to 1.26% APY. But after six months, this account would pay about the same amount as the 6-month CD with the ability to withdraw money. The only risk with a savings or money market rate is that the bank could drop rates lower. That's possible but getting increasingly unlikely as the economy improves.
Safety and Soundness
Great Florida Bank was established in 1984. The bank currently has a Bauer Rating of 1 out of 5 stars (Troubled) for its safety and soundness. Many Florida banks are having trouble as the real estate crash has hit Florida especially hard. The bank's stock (Nasdaq: GBLB) is trading at $.82, down from a high of $18 in 2007. The bank is FDIC insured so if you deposit money be sure to stay below FDIC insurance limits.
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