Tennessee Commerce Bank 2.30% APY Savings Account

Rate information contained on this page may have changed. Please find latest savings rates.

Tennessee Commerce Bank is offering a competitive savings account paying 2.30% APY. It's also offering a some top cd rates.

Tennessee Commerce Bank is offering a competitive savings account paying 2.30% APY as of 6/5/2009.  That puts it near the top of the best savings and money market rates on the BestCashCow rate table.  It's also offering a some top cd rates.  As of 6/5/2009:

  • 2.40% APY 12 months
  • 2.45% APY 18 months
  • 2.87% APY 24 months
  • 3.27% APY 36 months
  • 3.45% APY 48 months
  • 3.65% APY 60 months

 

Opening and Funding

To open the savings account or a certificate of deposit, you'll need to download an application form, fill it out and mail it back with two pieces of identification.  To fund the account, you can send a check with your application, use ACH, or use a wire transfer.

Some key things to know about the account include:

  • The account is available nationally
  • There is a $250 minimum opening deposit and balance to avoid a $2.50 monthly fee
  • Trust accounts and POD accounts available
  • $2.50 charge for more than one withdrawal per month. 

Safety and Soundness

Based on FDIC data from March 31, 2009, Tennessee Commerce Bank has$1.266 billion in assets and $1.108 billion in deposits. Bauer Financial gives it 3.5 out of 5 stars (Good) for its safety and soundness.  The bank is FDIC insured.

Credit for this find goes to BankDeals.

Please share any experience you've had with Tennessee Commerce Bank.


Everbank Raises Promo Rate to 3.01% APY

Rate information contained on this page may have changed. Please find latest savings rates.

Everbank raised the promo rate on its yield pledge money market account from 2.55% to 3.01%. This reverses the trend of six months of rate cuts and may be another sign that we are reaching the bottom in savings and money market rates.

Everbank raised the promo rate on its yield pledge money market account from 2.55% to 3.01%.  This reverses six months of rate cuts and may be another sign that we are reaching the bottom in savings and money market rates.

Everbank's 1 year APY has increased from 1.87% to 2%.  What we've always found interesting about Everbank's offer is that the three month promo is a guaranteed rate for three months.  That means, in essence you get an account equivalent to a  3-month CD that is paying 3.01% APY and that is totally liquid.  The best 3-month CD rate according go the BestCashCow rate tables is 1.70% APY.

At times like this, when rates seem to have bottomed and are increasing on the longer-term CDs, parking money for a short-term in a higher yielding account like Everbank may make a lot of sense.

Everbank has always had a competitive promo rate.  Starting last fall it began to drop, along with savings and money market rates in general.  This increase reverses the trend of six months of rate cuts and may be another indicator, along with a leveling of the decline we've seen, that savings and money market rates have bottomed and will start trending up.


How GM Bankruptcy Filing Impacts GMAC and Ally Bank

Rate information contained on this page may have changed. Please find latest savings rates.

GMAC today issued a statement commenting on the filing of its once parent corporation General Motors.  The statement shows that while the financing company does have exposure to GM, bankruptcy will hopefully minimize the losses. 

Ally Bank, a bank that has been in the news quite a bit over the last week due to its high rates on savings and certificates of deposit is a subsidiary of GMAC.  Ally Bank was formerly known as GMAC Direct.

The statement on the GMAC site says:

DETROIT (June 1, 2009) -- GMAC Financial Services is a creditor of General Motors Corp. (GM) and as such is taking the appropriate steps to protect GMAC's interests during GM's restructuring.

GM has submitted a motion to the U.S. Bankruptcy Court that, pending approval, would allow its direct business with GMAC to continue in the ordinary course during GM's restructuring. In addition, GMAC has been advised by GM that GM will take appropriate steps in the bankruptcy court to authorize a purchaser of the assets to comply with all of the contracts with GMAC, including all payment obligations.

GMAC continues to provide automotive financing products and services to GM and Chrysler dealers and customers, including retail auto originations, wholesale financing, insurance products, and servicing of customer loans. The company's non-automotive activities also continue uninterrupted.

GMAC is a bank holding company with a newly appointed board of directors and a diversified ownership structure. GMAC has not filed for bankruptcy, nor does it intend to, and the company continues to meet all of its obligations.

The wording of this couldn't be more ambigious business-speak.  GMAC is a creditor to GM, meaning that it does have exposure. I'm guessing that the majority of the exposure comes from loans to dealers to purchase cars from the automaker (wholesale financing).  At the same time, the statement implies that the bankruptcy filing will ensure that GMAC is made whole for these transactions and will keep the financing relationship in place : "In addition, GMAC has been advised by GM that GM will take appropriate steps in the bankruptcy court to authorize a purchaser of the assets to comply with all of the contracts with GMAC, including all payment obligations."

So, for depositors of Ally Bank, this looks like a non-event for now. GMAC Finance issued a statement earlier today on an unrelated matter stating that the company was financially sound and had aqequate capital. 

I've contacted GMAC and will post any further information that I receive.