A year after the worst U.S. fire in over a century and the water in Lahaina, Maui is finally “safe to drink”.

That, combined with a 90% clearing of the demolished residential lots and a $4 billion settlement announced on August 2, 2024, will help the community to finally see some light at the end of their tunnel.

However, the banks in Hawaii find themselves in need of deposits to lend. Good news for depositors is they are willing to pay attractive interest to bring those deposits home.

Lahaina, Maui: a Year After the Wildfires

It has been a year since the worst U.S. fire in over a century ravaged the town of Lahaina on the island of Maui (8/8/23). Surviving residents, who were scattered throughout the islands and to the mainland, are still a long way from moving back home.

Those with homes that remained standing as well as those who want to rebuild finally got some good news. Just a week shy of the anniversary, the public water in Lahaina was declared “safe to drink”.

In another step forward, over 90% of the nearly 1,500 residential lots that needed to be cleared of debris, are now clear. That, combined with a $4 billion settlement announced on August 2, 2024, will help the community to finally see some light.

Hawaiian Electric Industries, the parent of 4-Star American SB, FSB, Honolulu, and its parent, ASB Hawaii Inc., a savings & loan Holding Company (JRN 40:32), is on the hook for about half of that settlement amount. Hawaiian Electric, undoubtedly in need of money, is also (reportedly) considering a sale of American SB.

Five of American SB’s 35 branch offices are located on Maui, but none are (or were) in Lahaina. As a result, American SB did not suffer a direct financial hit from the fires. It has, however, experienced an outflow of deposits since that firestorm. Deposits are needed to make loans that will help neighbors rebuild and get back on their feet.

To make up for the outflow, American SB began doing two things: 1) it took in about $150 million of brokered deposits during the fourth quarter of 2023 and 2) it began offering CD specials on its website. In fact, Jumbo Rate News is pleased to welcome 4-Star American SB, FSB, Honolulu, HI to its rate pages this week.

The posted rates are good for consumers as well as businesses. The only caveat is that the funds must come from another financial institution. Sounds fair enough.

You will also find American SB on page 2, along with every other bank headquartered in Hawaii. (All Hawaii credit unions are listed on page 5.) Links to their respective websites are  provided (when available). While most do not accept deposits from out-of-state businesses, consumers will have better luck. (Many are also still set up to receive donations.)

Consumer CDs are now available at 3½-Star Bank of Hawaii, Honolulu,  which is offering a 6 month CD ($5,000 minimum) at 4.55% APY. It too, requires the funds to come from an another institution. (Bank of Hawaii has several Maui branches, including two in Lahaina.)

For a limited time, 5-Star Central Pacific Bank, Honolulu also has a 6 month CD special available (4.50%). In this case, the CD is only available to customers with a CPB exceptional checking account. Central Pacific also put a $1 million cap on this CD.

Former JRN listee, 5-Star Finance Factors Ltd., Honolulu has also joined in with two consumer eCDs: 6 months at 4.50% APY and 12 Months at 4.00% APY. It requires just $1,000 to open an account.

Also offering eCDs to consumers is 4-Star First Hawaiian Bank, Honolulu with a $500 minimum and a $250k maximum: 6 months has a 4.50% APY and the 1 year APY is 4.10%.

And finally, with $1,000 and a Hawaii address, 5-Star Territorial SB, Honolulu has a 6 month at 4.65% APY and 7 to 12 months at 4.00% APY. Again, new money only.

These are not the best rates in the U.S., but they are better than average. And, the money will be used toward rebuilding Lahaina.

Notably missing from this article (up to now) is 5-Star Hawaii National Bank, Honolulu, the only other bank headquartered in the Aloha State. Hawaii NB has witnessed some fluctuations in its deposits since the fire, but to a lesser degree than some. Hawaii NB closed one of its ten branches permanently in January (its Hilo office), but has maintained roughly the same number of employees. Loans are up from a year ago, and even better, its loan quality is superb.