Community Bank, with branches primarily in Mississippi is offering a 3.00% APY 15-month IRA CD. That's a terrific rate. The top 5-year CD at the moment pays only 2.75% and the top 12-month CD pays 2.01%. Average CD rates are even lower. The 3.00% APY is a relationship rate and a depositor must have another account at the bank to that rate. That's as easy as opening a checking or savings account. Without a companion account, the rate drops to 2.00% APY for the FIRA, still very competitive. The rate is also only available for new contributions to the bank. The account must also be opened in a branch, so this is a local offer only.
This is not a standard CD, but rather a retirement CD. Please visit our Fixed IRA Guide for more information on how these investments work.
Community Bank has an interesting structure. It consists of eight separately chartered banks that are tied together at the holding company level via a corporation called Community Bancshares, Inc. The company as a whole has $2.2 billion in assets. We found at least two of the eight banks that are offering the competitive rate: Community Bank, North Mississippi and Community Bank, Coast.
Community Bank, North Mississippi has $485 million in assets, up from $183 in 2006. The bank has a Texas Ratio of 46% versus the national average of 19.96%. It has eight branches scattered around North Mississippi, including Memphis.
Community Bank, Coast has $390 million in assets, up from $310 million in 2006. It has a Texas Ratio of 20.94% versus the national average of 19.96%. The bank has eight branches primarily on the gulf and southern parts of the state.
It's very likely that the other six banks also offer the IRA rate. If anyone is able to confirm that, please let us know.
Find the best FIRA CD rates in your local area. Don't settle for average rates on your money.
Previous Weekly Rate Spotlights
- March 21, 2012- First Choice Bank Offering Competitive CD Rates in New Jersey
- March 13, 2012 - The City National Bank of Metropolis Offering 1.26% APY Money Market Account
- March 6, 2012 - North Country FCU Offering 2.80% APY 60-Month CD - Northern Vermont
- February 27, 2012- El Paso Area Teachers FCU Offering 2.98% APY Five Year CD
- February 21, 2012 - Cardinal Bank Offering 2.01% APY First Choice Checking
- February 13, 2012 - Citizens State Bank Offering 4.00% APY Variable IRA
- February 6, 2012 - Liberty Bank & Trust Offering 1.31% APY Savings Account Rate
- January 30, 2012 - WYMAR Federal Credit Union Offering 2.27% APY 24-Month CD
- January 23- 2012 - Frederica Credit Union Offering 1.65% APY 12-Month CD - Open to All
- January 17, 2012 - Western Heritage Bank Offering 2-Year CD Paying 1.75% APY
- January 9, 2012 - Navy Federal Credit Union Offering 3.00% APY 20-Month IRA CD
- January 5, 2012 - Consumers Credit Union Offers 4.09% APY Rewards Checking Account - Nationally Available
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Investing in an IRA CD is a bit different from a regular certificate of deposit.
As I wrote in the BestCashCow Fixed Rate IRA Guide:
Fixed Rate Individual Retirement Accounts (also called CD IRAs) are certificates of deposit held within a traditional Individual Retirement Account (IRA) or a Roth IRA. As a result, any interest on the certificate of deposit accumulates according to the tax advantages of the IRA. In a traditional IRA, pre-tax income is deposited into the account where it accumulates until retirement age. At that point, when the money is withdrawn, the user is taxed at their prevailing tax rate.