Luther Burbank Savings Reviews of Checking, CD, Money Market, and IRA Rates
Luther Burbank Savings is a small, California-based bank that was first chartered in 1983. It has nine branches across the state and has about $9 billion in assets.
Though it’s a California state-chartered commercial bank, deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.
For a small institution, Luther Burbank has a diverse product line. You can find a number of different types of checking accounts, CDs and money market accounts at the bank. Rates and terms can vary based on a number of different factors.
Here’s a closer look at the Luther Burbank product line, with information on rates and how to open various accounts.
Luther Burbank Savings’s Most Popular AccountsAPY | Account Type | Account Name | Compare Rates from Similar Accounts | ||
|---|---|---|---|---|---|
0.05% | Savings | Luther Burbank Savings High-End Money Market Savings | 1.85% | Goldman Sachs Bank USA High-yield Online Savings Account | on Goldman Sachs Bank USA’s secure website |
0.80% | CD Rates | Luther Burbank Savings 12 - 23 Month CD | 2.50% | Ally Bank High Yield 12-Month CD | on Ally Bank’s secure website |
1.30% | CD Rates | Luther Burbank Savings 36 Month CD | 2.70% | Synchrony Bank 36 Month CD | on Synchrony Bank’s secure website |
1.80% | CD Rates | Luther Burbank Savings 60 Month CD | 3.00% | Goldman Sachs Bank USA High-yield 5 Year CD | on Goldman Sachs Bank USA’s secure website |
In this article, we’ll cover:
Checking account options at Luther Burbank Savings
CD rates at Luther Burbank Savings
Money market account options at Luther Burbank Savings
IRA account options at Luther Burbank Savings
Overall review of Luther Burbank Savings
Checking account options at Luther Burbank Savings
[LutherBurbankEverydayChecking]Everyday Checking[/LutherBurbankEverydayChecking]
Online account access, high interest rates and no fees make this account an attractive checking option.APY | Minimum opening deposit |
|---|---|
0.75% | $1,000 |
- Minimum opening deposit: $1,000.
- Monthly account maintenance fee: None. However, a monthly direct deposit or online bill pay transaction must occur within 90 days of account opening to avoid fee of $15.
- ATM fee: $0
- ATM fee refund: 100% of all ATM fees worldwide
- Overdraft fee: $20
Luther Burbank Savings refers to its Everyday Checking account as “the checking account of the future,” and for many traditional banking clients, this may be true. With a relatively modest opening balance, you can get access to a high interest rate and a host of free services and benefits.
No ATM service charges. Luther Burbank Savings doesn’t charge ATM fees with its Everyday Checking account, or with any checking account for that matter. Best of all, if you’re charged an ATM fee anywhere, Luther Burbank Savings will reimburse the fee automatically.
Free online banking, bill pay, person-to-person transfers, debit card and mobile app. Many of these freebies are standard with online banking accounts, but the Luther Burbank’s mobile app includes bill pay and deposit features, which is not always the case.
On the downside, Luther Burbank Savings doesn’t offer any overdraft protection on its checking accounts. You can open a savings account and make transfers yourself to cover your checks, but if you overdraw the account, you’ll get hit with a $20 penalty fee and the bank won’t make an automatic transfer on your behalf.
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[LutherBurbankRegularInterestChecking]Regular Interest Checking[/LutherBurbankRegularInterestChecking]
The Luther Burbank Regular Interest Checking Account is the “standard” checking account offered by the bank.APY | Minimum Deposit Amount |
|---|---|
0.05% | $0 - $999.99 |
0.05% | $1,000 - $4,999.99 |
0.10% | $5,000 - $24,999.99 |
0.10% | $25,000 - $49,999.99 |
0.10% | $50,000 - $74,999.99 |
0.10% | $75,000+ |
- Minimum opening deposit: $50; $5,000 for highest rates
- Monthly account maintenance fee: $15 if minimum not met
- ATM fee: $0
- ATM fee refund: 100% of all ATM fees worldwide
- Overdraft fee: $20 (no overdraft protection)
This account may be more appropriate for traditional retail customers that want more than free checking or online checking, but may not want to deposit as much as required by the High-End Checking account.
The interest rate on Luther Burbank’s Regular Interest Checking account is nothing special. Even at the $5,000 deposit level, which earns the account’s highest rates, Regular Interest Checking pays on par with the national average for checking accounts. The rate is even lower for deposits below $5,000.
Account holders still benefit from the free worldwide ATM access offered to all Luther Burbank checking customers.
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[LutherBurbankHighEndChecking]High-End Checking[/LutherBurbankHighEndChecking]
The High-End Checking account pays additional interest to account holders with higher balances.APY | Deposit |
|---|---|
0.05% | $0 - $999.99 |
0.05% | $1,000 - $4,999.99 |
0.30% | $5,000 - $24,999.99 |
0.40% | $25,000 - $49,999.99 |
0.40% | $50,000 - $74,999.99 |
0.40% | $75,000+ |
- Minimum opening deposit: $1,000 to open, $25,000 for highest rates
- Monthly account maintenance fee: $15 if minimum not met
- ATM fee: $0
- ATM fee refund: 100% of all ATM fees worldwide
- Overdraft fee: $20 (no overdraft protection)
The High-End Checking account caters to clients with larger available balances, paying its best rates on bigger deposits. Rates for higher deposits can pay more than twice the national average. However, customers can still get higher rates with the bank’s Everyday Checking account if they’re willing to go completely online.
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[LutherBurbankFreeChecking]Free Checking[/LutherBurbankFreeChecking]
The Luther Burbank Free Checking account is the most basic offering at the bank, offering free services for low minimums but paying no interest.- Minimum opening deposit: $0
- Monthly account maintenance fee: None
- ATM fee: $0
- ATM fee refund: 100% of all ATM fees worldwide
- Overdraft fee: $20
Luther Burbank’s Free Checking account can be considered the bank’s “entry-level” account. With no minimum opening deposit or account maintenance fees, the account is perfect for first-time clients, such as college students. The account isn’t completely fee-free, however. As with other Luther Burbank checking accounts, you’ll get hit with a fee if you overdraw your account as this account doesn’t come with overdraft protection.
Even as a “basic” account, the free checking account at Luther Burbank Savings offers a host of benefits. You’ll get the same ATM fee rebates and free services as the bank’s other checking accounts, including mobile and online access, a debit card, bill pay and person-to-person transfers.
How to open a Luther Burbank checking account
You can open Luther Burbank’s checking accounts either online or in a branch. Depending on where you live, opening your account online might be much more convenient. Luther Burbank Savings is a California-based bank that only operates nine branches, located in a range of locations from Northern to Southern California.
To open any type of checking account at Luther Burbank Savings, you’ll need to be a U.S. citizen and at least 18 years old. You’ll also need to provide the following information:
- Social Security number
- Driver’s license or state-issued ID
- Beneficiary information, including name, Social Security number and date of birth
From there, click through the online account application to provide the rest of the required personal and financial information. You’ll be asked for standard information such as your contact information, employment status and funding source.
To open an account in a branch, you’ll need to provide the same information to a Luther Bank representative in person.
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magnifying glassHow Luther Burbank’s checking accounts compare
Luther Burbank Savings offers enough different types of checking accounts that you can likely find one that matches your needs. A completely free checking account is offered and is much more than a “bare-bones” account that some other institutions offer. Even at the free level, you’ll have mobile and online access, a debit card, bill pay services and unlimited, fee-free ATM access worldwide.
Clients in need of additional services or higher interest rates can take advantage of Luther Burbank’s other checking options. Fans of traditional retail banking may prefer the Regular Interest Checking account over the free or “Everyday” options, while those capable of making larger deposits may benefit most from the High-End Checking account.
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CD rates at Luther Burbank Savings
[LutherBurbankStandardCD]Standard CD rates[/LutherBurbankStandardCD]
Rates of standard CDs at Luther Burbank Savings vary based on duration and amount deposited.Terms | $1,000 - $49,999.99 | $50,000 - $99,999.99 | $100,000 - $249,999.99 | $250,000+ |
APY | APY | APY | APY | |
3-5 Months | 0.70% | 0.70% | 0.70% | 0.70% |
6-11 Months | 0.75% | 0.75% | 0.75% | 0.85% |
12-23 Months | 0.80% | 0.90% | 1.00% | 1.10% |
24 Months | 1.05% | 1.15% | 1.25% | 1.35% |
30 Months | 1.30% | 1.40% | 1.50% | 1.60% |
36 Months | 1.30% | 1.40% | 1.50% | 1.60% |
48 Months | 1.55% | 1.65% | 1.75% | 1.85% |
60 Months | 1.80% | 1.90% | 2.00% | 2.10% |
- Minimum opening deposit: $1,000, but higher deposits can earn higher rates
- Minimum balance amount to Earn APY: $1,000; $250,000 for highest rates
- Early withdrawal penalty: 90 days’ interest for 1-11 month maturities; 180 days’ interest for 12-23 month maturities; 365 days’ interest for 24+ month maturities
Luther Burbank Savings offers a decent range of maturities, but you won’t see the longer-dated CDs that you can find at some other institutions. If you’re looking to put your money away for more than five years, you’ll have to look at CDs from other institutions.
Be aware that if you need to take out your money before maturity, you’ll face an early withdrawal penalty that will cost you some of your interest.
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[LutherBurbankSpecialCD]Special CD rates[/LutherBurbankSpecialCD]
Luther Burbank Savings periodically offers special rates on particular CD maturities.Term | APY | Minimum opening deposit |
|---|---|---|
3 Months | 1.25% | $1,000.00 |
- Minimum opening deposit: $1,000
- Minimum balance amount to earn APY: $1,000
- Early withdrawal penalty: 90 days’ interest for 1-11 month maturities; 180 days’ interest for 12-23 month maturities; 365 days’ interest for 24+ month maturities
As of July 25, 2018, Luther Burbank Savings offered a special-rate CD with a 3-month term on deposits of $1,000 or more. The rate is special because the term is only three months but the rate is closer to what you’ll get with a 24- to 30-month CD at this bank.
How to get Luther Burbank’s CDs
Luther Burbank doesn’t allow an online application for CD accounts. To open a CD, you’ll need to contact the bank directly at (888) 201-1233. Lines are open from 9 a.m. (PST) to 5 p.m., Monday through Friday.
You can also open a CD account by visiting one of the bank’s branches.
When you open a CD account, you’ll need to provide the same type of personal and financial information you would if you were opening a checking account. So, you’ll need your Social Security number, personal identifying information such as your name, address and birth date and financial information.
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magnifying glassHow Luther Burbank’s CD rates compare
Luther Burbank’s CD rates overall are above average. For most maturity ranges, the bank’s CD rates are at or above the national average for that term.
The best way to get a good rate at Luther Burbank is to deposit more money since the bank has a tiered rate system where larger deposits translate to better rates. At the highest deposit levels, the CD rates paid are much higher than the national average.
You can also earn higher interest rates at Luther Burbank Savings by purchasing longer-term CDs. With the exception of special CD rates, the longer the CD maturity, the higher the rate. CD terms at Luther Burbank Savings run as long as 60 months.
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Luther Burbank’s Money Market account options
[LutherBurbankMoneyMarketChecking]Money Market Checking account[/LutherBurbankMoneyMarketChecking]
At most deposit levels, you can get the same or higher interest rate on some of the bank’s other checking account options than you can with the Money Market Checking account.APY | Minimum Deposit Amount |
|---|---|
0.05% | $0 - $999.99 |
0.05% | $1,000 - $9,999.99 |
0.05% | $10,000 - $24,999.99 |
0.05% | $25,000 - $49,999.99 |
0.10% | $50,000 - $74,999.99 |
0.20% | $75,000+ |
- Minimum opening deposit: $1,000; $75,000 or more for highest rates
- Minimum balance to earn APY: $0
- Monthly account maintenance fee: $15 if minimum balance not met
- ATM fee: $0
- ATM fee refund: 100% of ATM fees worldwide
- Overdraft fee: $20
- Transaction Limitations: Six transactions per period
Luther Burbank’s Money Market Checking account is something of a hybrid between a checking account and a savings account. You’ll earn interest and be able to write checks. But you could earn more interest in one of the bank’s other checking accounts.
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[LutherBurbankHighEndMoneyMarketsavings]High-End Money Market savings account[/LutherBurbankHighEndMoneyMarketsavings]
The bank’s High-End Money Market savings account currently offers only slightly higher interest rates than the Money Market Checking account, and only for larger deposits. Rates still don’t reach the best checking account rates offered at the bank.APY | Deposit |
|---|---|
0.05% | $0 - $999.99 |
0.05% | $1,000 - $9,999.99 |
0.05% | $10,000 - $24,999.99 |
0.10% | $25,000 - $49,999.99 |
0.15% | $50,000 - $74,999.99 |
0.20% | $75,000+ |
- Minimum opening deposit: $1,000; $75,000 or more to earn highest rates
- Minimum balance to earn APY: $0
- Monthly account maintenance fee: $15 if minimum balance not met
- ATM fee: $0
- ATM fee refund: 100% of ATM fees worldwide
- Overdraft fee: $20
- Transaction limitations: Six ACH withdrawals per period
You can’t write checks on this account, but you can still withdraw your funds as many as six times each statement period via ACH.
How to get Luther Burbank’s money market accounts
The process for opening a Luther Burbank money market account is the same as if you were opening a CD account. In other words, you won’t be able to open these types of accounts online. You can either visit branch to set up your account, or you can call the bank at (888) 201-1233, Monday through Friday between 9 a.m. and 5 p.m. PST.
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magnifying glassHow Luther Burbank’s money market accounts compare
In some ways, it’s hard to differentiate between the two types of Luther Burbank money market accounts. They pay nearly identical interest across all deposit levels, and they require the same minimum deposit to open.
Even at the highest deposit levels, money market account rates at Luther Burbank Savings fall below the national average and other money market accounts. The main difference between the two types of accounts is that one is a checking account while the other is a savings account. The checking account offers check-writing privileges, while the savings account, in some instances, pays slightly higher interest. Both money market accounts come with the standard Federal Reserve-imposed limitation of six withdrawals/transfers per period. If you exceed this amount, you’ll get a warning from the bank. If you persist, your account will automatically be converted from a money market account into a regular checking account.
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IRA Account Options at Luther Burbank Savings
If you’re a fan of Luther Burbank’s CDs, you can get essentially the same product in an IRA wrapper.[LutherBurbankIRACD]IRA CD rates[/LutherBurbankIRACD]
Terms | $1,000 - $49,999.99 | $50,000 - $99,999.99 | $100,000 - $249,999.99 | $250,000+ |
APY | APY | APY | APY | |
3-5 Months | 0.70% | 0.70% | 0.70% | 0.70% |
6-11 Months | 0.75% | 0.75% | 0.75% | 0.85% |
12-23 Months | 0.80% | 0.90% | 1.00% | 1.10% |
24 Months | 1.05% | 1.15% | 1.25% | 1.35% |
30 Months | 1.30% | 1.40% | 1.50% | 1.60% |
36 Months | 1.30% | 1.40% | 1.50% | 1.60% |
48 Months | 1.55% | 1.65% | 1.75% | 1.85% |
60 Months | 1.80% | 1.90% | 2.00% | 2.10% |
- Minimum opening deposit: $1,000
- Minimum balance amount to earn APY: $1,000, but $250,000+ earns highest rates
- Early withdrawal penalty: 90 days’ interest for 1-11 month maturities; 180 days’ interest for 12-23 month maturities; 365 days’ interest for 24+ month maturities
Luther Burbank’s IRA CDs work like standard CDs. The more you deposit, the more likely you are to receive a higher interest rate. Breakpoints for rate jumps, along with the rates themselves, are the same as with standard CDs. For most maturities, you’ll earn more interest for deposits of $50,000, $100,000, and $250,000 or more. The same $1,000 minimum opening deposit applies to all Luther Burbank CDs.
Since your money is in an IRA, you’ll have to deal with the same restrictions that apply to this type of retirement account. For example, when your CD matures, you can choose whether or not to roll that money into a CD, but you won’t generally want to take that money out of the account. If you do, you’ll face ordinary income taxation, on top of a 10% early withdrawal penalty if you’re under age 59½.
Speaking of early withdrawal penalties, Luther Burbank’s IRA CDs carry the same penalties for early withdrawal as standard CDs. If you need to liquidate your CD early, you’ll give up some interest. However, since the money is in an IRA and you won’t generally be taking it out of the account until after you retire, these early withdrawal penalties are easy to avoid.
How to get Luther Burbank’s IRA CDs
Opening an IRA at Luther Burbank Savings requires either a phone call or a visit to a local branch. The service number is the same as you would use to open other types of accounts, (888) 201-1233.
You’ll be asked for some basic personal information and financial information, including your name, address and Social Security number. If approved, you can fund the account via ACH, wire transfer or paper check.
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magnifying glassHow Luther Burbank’s IRA CD rates compare
Luther Burbank’s IRA CD rates are not among the best IRA CDs available in the market. However, they are well above the national average rates across the whole range of maturities. Minimum deposits are fairly standard, although some other banks offer lower entry points. If you’re investing in longer term CDs, pay heed to the steep early withdrawal penalty. If you have to take your money out before maturity, you’ll lose an entire years’ worth of interest.
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[LutherBurbankIRAMoneyMarketaccount]IRA Money Market account[/LutherBurbankIRAMoneyMarketaccount]
The High-End Money Market account is also available in IRA accounts at Luther Burbank Savings, with the same rates.APY | Deposit |
|---|---|
0.05% | $0 - $999.99 |
0.05% | $1,000 - $9,999.99 |
0.05% | $10,000 - $24,999.99 |
0.10% | $25,000 - $49,999.99 |
0.15% | $50,000 - $74,999.99 |
0.20% | $75,000+ |
- Minimum opening deposit: $1,000; $75,000 or more to earn highest rates
- Minimum balance to earn APY: $0
- Monthly account maintenance fee: $15 if minimum balance not met
- ATM fee: $0
- ATM fee refund: 100% of ATM fees worldwide
- Overdraft fee: $20
- Transaction limitations: 6 ACH withdrawals per period
Luther Burbank’s IRA money market account is the same one you can get in a regular account. Luther Burbank Savings offers the savings account version in the IRA since an IRA is a long-term investment account, not a checking account. You can take money out of the High-End Money Market account in your IRA, up to six times per month, but withdrawals are subject to the usual taxation and possible early withdrawal penalties outlined above.
If you’re leaving your money in the account for the long run, which is the purpose of an IRA in the first place, you’ll get a much higher return on your money by investing it in the bank’s CDs rather than the money market account.
How to get Luther Burbank’s IRA Money Market Account
To get an IRA money market account at Luther Burbank Savings, you’ll have to first open an IRA. The procedure is the same as if you’re getting an IRA CD, by making a phone call or visiting a local branch. Representatives are available at (888) 201-1233. You can also choose to call a local branch directly. Whichever method you choose, you’ll have to provide the same standard personal and financial information and then fund your account.
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Overall review of Luther Burbank Savings
Luther Burbank Savings has strategically kept its branch network small to focus on what it believes customers want. For the most part, fees and minimum account requirements are low. Rates for some accounts are below average, but for many accounts, including the Everyday Checking, High-End Checking and CD accounts, they top the national norms. Considering the small branch network, the bank offers a wide range of products for customers to use.
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