Earning 1.2 percent on a 5-year CD as of June 2013 is pretty typical fare for certificates of deposit. However, earning 1.55 percent on a 5-year CD is a bit more attractive, especially when dealing sizable amounts under $250,000 per account. AloStar Bank of Commerce is currently making this offer within its CD schedule, ranging from less than one year to 5 years in term lengths.

The Bank offers customers four categories of CDs including traditional formats, small business CDs, and both retirement types (traditional IRA and Roth). While AloStar’s rate schedule will pay interest on terms as low as 30 days, the best earnings are on money locked up for a sizable duration.

AloStar is a fairly new institution, having only been established in April 2011. Unlike other banks, AloStar’s goals and mission statement put a heavy emphasis on providing banking services to the average working American versus the majority of focus on big commercial clients. The main leadership of AloStar includes a combined aggregate of 66 years of banking management experience, and AloStar is recognized and insured by the Federal Depositors Insurance Corporation (FDIC) as well.

To generate and increase its assets, obviously, AloStar is offering more competitive rates, both for online banking and borrowing. With headquarters based in Birmingham, Alabama, AloStar relies on the Internet and phone for most of its customer reach. However, the Bank utilizes partner bank offices in Texas, California, Illinois, Maryland, and Georgia. AloStar management is also working on establish lending offices in Boston and New York.

So while AloStar’s CD offering isn’t necessarily like striking gold, gaining a quarter point or so over the majority of the market is an advantage in earning interest, especially when one needs to keep deposits safe under federal insurance protection.

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