Farmers And Merchants Bank CD Rates
Farmers & Merchants Bank in Piedmont, Alabama, offers certificates of deposit with terms ranging from 30 days to five years.
The bank’s current CD rates vary by term, with longer certificates generally offering higher annual percentage yields. The rates listed by the bank are effective August 24, 2026.
The institution is different from other banks with similar names across the United States. This article focuses specifically on Farmers & Merchants Bank headquartered in Piedmont, Alabama.
What Are The Current Farmers And Merchants Bank CD Rates?
Farmers & Merchants Bank currently offers CD terms from 30 days through five years. The minimum opening deposit for these certificates is $1,000.
The bank publishes both the interest rate and annual percentage yield for each certificate. APY reflects the effect of compounding and is useful when comparing deposit products.
| CD Term | Interest Rate | APY | Minimum Deposit |
| 30 Days | 0.05% | 0.05% | $1,000 |
| 60 Days | 0.10% | 0.10% | $1,000 |
| 90 Days | 0.50% | 0.50% | $1,000 |
| 6 Months | 3.50% | 3.55% | $1,000 |
| 1 Year | 3.75% | 3.80% | $1,000 |
| 18 Months | 3.95% | 4.01% | $1,000 |
| 2 Years | 4.00% | 4.06% | $1,000 |
| 30 Months | 4.05% | 4.11% | $1,000 |
| 3 Years | 4.10% | 4.16% | $1,000 |
| 4 Years | 4.15% | 4.22% | $1,000 |
| 5 Years | 4.25% | 4.32% | $1,000 |
The highest listed APY is 4.32% for the five-year CD. Rates can change without notice, so customers should confirm the current rate before opening an account.
Which CD Terms Does Farmers And Merchants Bank Offer?
The bank provides several short and long-term certificate options. Each term has a fixed rate for the agreed certificate period.
Short-Term CDs
The shortest available certificates run from 30 to 90 days. Their current APYs are 0.05%, 0.10%, and 0.50%, respectively.
These certificates may suit customers who want a shorter commitment. However, their current yields are substantially below the bank’s longer-term CD rates.
Longer-Term CDs
The bank offers certificates with terms of six months, one year, 18 months, two years, 30 months, three years, four years, and five years.
The five-year certificate currently has the highest listed APY at 4.32%. The rate increases gradually across the longer terms, reaching 4.16% for three years and 4.22% for four years.
How Much Do You Need To Open A CD?
Farmers & Merchants Bank requires a $1,000 minimum deposit to open one of its listed CDs.
The minimum applies across the CD terms shown on the bank’s current rate schedule. Customers should confirm the required amount when opening a certificate because deposit requirements can change.
The bank’s CD product page also states that its certificates have no monthly maintenance fee.
Does Farmers And Merchants Bank Charge An Early Withdrawal Penalty?
Yes. Farmers & Merchants Bank states that an early withdrawal penalty may apply when money is removed from a CD before maturity.
The current public rate information does not provide one universal penalty amount for every CD term. The exact penalty should therefore be confirmed with the bank before opening a certificate.
Early withdrawal rules matter because a CD is designed for funds that can remain deposited until the agreed maturity date.
How Does A CD Work At Farmers And Merchants Bank?
A certificate of deposit allows a customer to deposit money for a fixed period at an agreed interest rate.
The bank holds the funds until the certificate reaches maturity. During that period, the account earns interest according to the terms established when the CD is opened.
For example, a customer depositing $10,000 into a certificate should consider the term, stated interest rate, APY, and maturity conditions before committing the funds.
The bank also provides a certificate of deposit calculator that can help customers estimate earnings based on their deposit amount, term, rate, and compounding information.
Is Farmers And Merchants Bank FDIC Insured?
Farmers & Merchants Bank is an FDIC-insured institution. The bank is identified by FDIC Certificate Number 1735.
Standard FDIC deposit insurance generally covers eligible deposits up to the applicable insurance limit per depositor, ownership category, and insured bank.
Customers with large deposits should understand how insurance limits apply to their specific ownership structure.
The bank also offers CDARS for customers with larger deposits who want access to expanded FDIC insurance through participating institutions.
What Is CDARS At Farmers And Merchants Bank?
CDARS stands for Certificate of Deposit Account Registry Service.
Through CDARS, qualifying funds can be placed into CDs issued by participating banks. The structure can help customers obtain FDIC coverage beyond the standard limit while maintaining a relationship with one participating institution.
Farmers & Merchants Bank states that customers can receive one rate and a consolidated statement through the service.
Customers considering a large CD deposit should ask the bank about current CDARS availability, terms, rates, and applicable conditions.
Where Is Farmers And Merchants Bank Located?
Farmers & Merchants Bank is headquartered at 112 East Ladiga Street, Piedmont, Alabama 36272.
The bank has expanded beyond its original Piedmont location and operates branches in several Alabama communities.
Its locations include Piedmont, Anniston, Jacksonville, Oxford, and Centre.
The institution was founded in 1915 by Charley N. Thompson. It began with $15,000 in assets and has operated for more than a century.
Its history distinguishes it from other financial institutions using the Farmers & Merchants Bank name.
What Other Deposit Accounts Does The Bank Offer?
Certificates of deposit are only one of the bank’s deposit products.
Farmers & Merchants Bank also lists savings, NOW accounts, PIC accounts, and its Wall Street account. These products have different minimum balances, rates, and account requirements.
A savings account generally provides easier access to funds, while a CD requires a commitment for a specified period.
Customers researching banking products may also encounter unrelated institutions. For example, our guide to the Deerwood Bank routing number covers a separate Minnesota bank and should not be confused with Farmers & Merchants Bank.
What Should You Check Before Opening A CD?
Several details should be reviewed before placing money into a certificate.
Compare APY And Term
The APY shows the annualized return based on the account’s interest and compounding structure. The term determines how long the money remains committed.
A higher APY may not suit someone who expects to need the funds before maturity.
Check Early Withdrawal Rules
Customers should ask about early withdrawal penalties before opening a CD. Taking money out early can reduce the interest earned and may affect the principal depending on the account terms.
Confirm The Current Rate
CD rates can change over time. The rate available when a certificate is opened generally determines its return under the applicable account agreement.
For that reason, customers should verify the current rate directly with Farmers & Merchants Bank before depositing funds.
Consider Deposit Insurance
Customers should also confirm how FDIC coverage applies to their deposits. This becomes especially important when the combined balance exceeds standard insurance limits.
People researching other lending products may also encounter terms such as a bank statement HELOC, which is a different financial product designed around home equity.
Frequently Asked Questions
What Is The Highest Farmers And Merchants Bank CD Rate?
The highest currently listed APY is 4.32% for the five-year CD. The stated interest rate for that certificate is 4.25%.
What Is The Minimum Deposit For A Farmers And Merchants Bank CD?
The current minimum opening deposit is $1,000 for the listed CD terms.
What Is The Shortest CD Term At Farmers And Merchants Bank?
The shortest available certificate has a 30-day term. It currently carries a 0.05% APY.
Does Farmers And Merchants Bank Offer Five-Year CDs?
Yes. The bank offers a five-year CD with a current 4.25% interest rate and 4.32% APY.
Can You Withdraw Money From A Farmers And Merchants Bank CD Early?
Early withdrawal is permitted under the applicable account terms, but the bank states that an early withdrawal penalty may apply.
Final Takeaways
Farmers & Merchants Bank in Piedmont, Alabama, currently offers CDs from 30 days through five years with a $1,000 minimum deposit. The listed APYs range from 0.05% to 4.32%, with the highest rate attached to the five-year certificate.
The bank also offers CDARS for qualifying larger deposits and maintains several other deposit products. Since CD rates and account conditions can change, customers should verify the current rate, APY, maturity date, and early withdrawal terms before opening a certificate.