Many times banks taking over failed banks will offer great deals to keep customers or investors. There are customers that will leave a bank coming under new ownership simply because things have changed. They may not investigate the new bank or review their history; they simply don’t like the idea of a new bank and things changing. Research has shown that offering great deals are a way to retain the current investor base for many banks that take over failing banks. Examples include BB &T took over Colonial Bank or BBVA Compass took over Guaranty Bank.
On April 15th, AloStar Bank of Commerce took over Nexity Bank. AloStar Bank of Commerce is a newly chartered bank that was created when it acquired Nexity Bank as reported by the FDIC in their press release. AloStar Bank of Commerce does have an entry in the FDIC database which means that their certificate of deposit accounts are covered by the FDIC.
AloStar Bank of Commerce continues to extend online products and services similar to Nexity Bank including certificate of deposit rates that are competitive including their one year and 6 month term. They aren’t offering extraordinary deals. However, they are still competitive in today’s market.
These are the current CD rates for AloStar Bank of Commerce
30 Day CD 0.26% APY
90 Day CD 0.81% APY
6 Month CD 1.05% APY
9 Month CD 1.03% APY
12 Month CD 1.27% APY
24 Month CD 1.37% APY
AloStar Bank of Commerce is still competing for your investment dollar and their website advertises that local branches will provide higher than advertised rates. This is a negotiating tool that is terrific to use if you want to get the top rate for your certificate of deposit. No bank wants to see you walk out of their door with a cashier’s check for your CD.
There is a Highest CD Rate Survey you can complete and bring into the local branch of any AloStar Bank of Commerce along with proof of the higher advertised rates on competing websites and they will meet or beat them.
If you happen to have a Nexity Bank certificate of deposit you may be wondering what will happen now with AloStar Bank of Commerce and your CD. Banks that acquire a failed bank are permitted to reduce rates on existing CDs of the failed bank. Though, the bank must allow for a penalty free early withdrawal period. At this time AloStar Bank of Commerce has advised that no changes will be made to Nexity Bank customer’s certificates of deposit rates.