2.05% Money Market Account and 2.28% 12-Month CD at Seacoast Commerce Bank in CA - Nationally Available read and submit comments for this post

Update 11/14/09: The rates have fallen. Investor Money Market rate has fallen from 1.50% to 1.00% APY. CD rates have also fallen. Please refer to the bank's website for the latest rates.

Seacoast Commerce Bank is offering some competitive rates on its Internet Investor Money Market Account and on its Internet CDs. The rates and account overviews are described in the bank's internet account page as of 6/26/09.

The MMA has a 2.05% APY for balances over $25K. You probably won't want this account if you don't intend to keep a balance of at least $25K. Under $25K, the rate drops to 1.05% APY and there's a $25/month fee. The account has limited check writing, but there doesn't appear to be an ACH transfer system in which you can initiate electronic transfers.

The bank's Internet CD rates are also competitive. The two most competitive are the 2.28% APY 12-month CD and the 2.58% APY 24-month CD. Minimum deposit is $10,000. Some details I was told about the CDs include:

• Rate is locked at the time of application and/or postmark of
  application and deposit
• No fees for a wire transfer to open the account. Outgoing wire at time of close is $30 (can be waived however)
• Early withdrawal penalty is 3 months of interest
• When CD matures, mailed check is free, outgoing wire transfer is $30
• Written authorization at CD closure is required. They do have a secure email system that can be used.

I was told by a bank official that they just began offering these accounts nationwide. There's an "Apply Now" link in the internet account page. This opens up a PDF application that must be filled out and mailed in along with a check. I was told that they can initiate or accept an ACH transfer for the initial deposit. The application provides a phone number to call for those details. Accounts must be opened online to be eligible for the rates.

Seacoast Commerce Bank is headquartered in Chula Vista, California which is in southern San Diego County. The bank has fair ratings for safety and soundness: 3 stars (adequate) at BauerFinancial (based on 3/31/09 data) and 3 stars (performing) at Bankrate.com (based on 12/31/08 data). The bank has been a FDIC member since 2003 (FDIC Certificate # 57428).

Thanks to the reader who emailed me info on these accounts.

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