One Georgia Bank offers a 4.00% 7-month CD for a minimum of $5000 amount of new funds deposited into the account. This offer is available in Atlanta Area only. It’s a very competitive rate, one of the highest CD rates in 2009 considering the short CD term (less than a year). This can automatically attract new depositors who are all ears when it comes to top CD rates. However, it can also be interpreted as an S.O.S. for a bank out of shape. Obviously, they’re trying to reel in depositors who are willing to let their $5000 worth fuel the bank.

The bank offered the same 7-month CD at 4.50% last September 2008. The sudden 0.50% drop may either be an indication of the banks slowly strengthening foothold. It could also be a buffering measure against the projected economical decline in 2009.

One Georgia started its operations in 2006, and has been taking “baby steps” in its investments. They’ve rated weakly compared to peers in the soundness meter: mere 2-stars (below peers) from BankRates.com and 3-stars (adequate) from BauerFinancial. Depositors need not worry, however, because One Georgia is an insured member of FDIC with Certificate #58238 and their money is safe in the bank.

If you’re a fairly new banker yourself, there’s no harm in investing your few dollars savings into their equally competitive long term CDs. For a lower minimum deposit of $1000, you can reap the benefits of a 4.00% APY (60-month CD); 3.85% APY (48-month CD); 3.75% APY (36-month CD); and 3.50% APY (24-month CD). For a more detailed listing of their CD rates, please refer to the bank’s rate table.

You don’t have to constantly keep watch of the bank’s changing APY and interest rates once you’ve deposited the funds. AYPs and interest rates for IRAs and CDs are fixed until the date of maturity. Always keep track of your maturity date as well, because most banks, including One Georgia, refresh their account’s terms automatically unless the depositor handed in, mailed, or faxed a written and signed instruction for the account to be closed. You may be looking at a longer wait for your money to mature again, penalty fees for withdrawing at an early date, and lower APY on your 2nd term, or all three.

In my personal opinion, it’s safer to invest your $1000 on a lower APY of 3.25% for 12 months. You might find higher APY’s for the same term, though, in more established banks across the US.

To open a CD account, you must have a One Georgia personal account holder first. For more information about account applications, contact their costumer service representative at 404-522-BANK (2265).