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Top 3 Month CD Rate Drops To 0.76% APY

The leader of the 3 month CD rate, AloStar Bank of Commerce just lowered their rate to 0.76% APY from 0.81% APY.

The online bank has been offering the best 3 month CD for some time now and is a rate available to anyone nationwide. AloStar Bank of Commerce is based out of Birmingham, Alabama.

The next best 3 month CDs go to Virtual Bank and Hudson City Savings at a rate of 0.75% APY. The difference between the two banks is the minimum deposit required. Hudson City requires a minimum deposit of $500 for local residences or $5,000 for everyone else, while Virtual Bank requires a minimum of $10,000 to achieve this rate.

Hudson City Savings has 130 locations throughout New Jersey, New York and Connecticut.

Virtual Bank is based out of Palm Beach, Florida and is the online division of Lydian Private Bank.

The next best 3 month CD drops down to 0.70% APY from OneWest Bank with a minimum deposit of $1,000. Other than these banks, the next best CD rate starts at 0.50% from Discover Bank.

All of these banks allow savers from anywhere in the United States to obtain their rates as long as you meet their minimum required deposits.

Be sure to compare the best CD rates around the nation from our CD rates database.


Federal Reserve Dooms Higher Interest Rates For Savers

For those of us who are waiting for the Federal Reserve to increase interest rates that banks have to pay to borrow money, our waiting has gotten much longer, at least two years longer. Since the Fed’s rate-setting committee decided to hold interest rates at the current record lows until ‘at least through mid-2013’, we cannot see interest rates increasing on any investment vehicle such as Certificates of Deposits, Savings Accounts or any other investment that relies on the interest banks pay.

What does this mean for savers?

Banks will continue to borrow money at near zero percent interest and basically will have an endless supply of cash from the Fed. Why would a bank pay a higher interest to its savers/investors if it can get the same amount of money from the Fed at 0%-0.25% interest? Since these interest rates will be held at or near zero percent until at least mid-2013, savers get the short end of the stick!

What does this mean for mortgage rates?

The only good news about interest rates staying at record lows goes to those of us buying houses, cars or other items that require a loan of some type. The whole idea of keeping interest rates low is to encourage people to buy bigger houses and cars, and to encourage businesses to hire and expand their businesses. Neither of these scenarios has been working. The real estate market continues to struggle, more and more people are losing their homes to foreclosure and less people are able to qualify for a refinance on their current home mortgage, thus missing out on these record low mortgage rates.

The thought of keeping interest rates at record lows was to help the struggling economy, to help business create more jobs, to help the failing housing market, to increase consumer spending and to boost manufacturing outputs, but none have seen a boost or an increase in productivity. So why does the Fed keep doing the same thing by keeping record low interest rates until mid-2013? Not only does this do anything for the struggling economy but also hurts savers and investors alike. CD rates will continue to stay at or near record lows and mortgage rates will look to stay around record lows until inflation hits. We can see that both CD rates and Mortgage rates sticking around these low rates for a long time to come, unless if the US economy picks up, inflation hits or the Fed decides to change course.


Best CD Rates Are Found At Local Credit Unions

Before we start talking about Credit Unions we did want to report that MainStreet Bank still has a great rate on their 36 Month CD at 2.00% APY. You have to go through their airbanking.com website and act like you are signing up as a new member to view their CD rates.

Time and time again we have seen credit unions beat out the big banks on the rates they offer for not only savings accounts but also certificates of deposits. Most Credit Unions are out of reach of the average person or they have strict membership requirements, one of the many reasons why they can offer higher rates. Right now Melrose Credit Union has held the top spot for most of the popular CDs, but Connexus Credit Union has higher rates for the 12 month and 60 month CDs.

We stated that many credit unions have strict requirements or do not allow just anyone to join unless if they are employees or are associated with the credit union in some manner. With Connexus Credit Union anyone can join by registering through the Connexus Association and pay a one-time fee of $5. You then have to open a savings account with another $5. To receive the higher rate on CDs with Connexus, you will have to open a checking account, which has to be an ‘active account’. They define an active account as:

having at least 1 Direct Deposit of net pay, including salary, wages, government benefits or pension made to the account each month. Have 10 checks, ACH withdrawals and/or signature debit card transactions clear the account by the last business day of each month, and electing to receive eStatements.

We asked how much checks cost and were told for a box of 150 checks the cost was $14.76. Connexus Credit Union is located in Wausau Wisconsin.

Connexus has a minimum deposit of $10,000 to receive their highest rates. For balances under $10,000 you will lose about 0.50% APY.

  • 12 Month CD rate of 1.75% APY versus Melrose Credit Union at a rate of 1.31% APY
  • 60 Month CD rate of 3.00% APY versus Melrose Credit Union at a rate of 2.83% APY

The national averages for both the 12 Month CD stands at 0.43% and 60 Month CD at 1.53% as stated by the FDIC.

The bank offering the highest 12 month CD is AloStar Bank of Commerce at 1.27% and the bank offering the highest 60 month CD is First Internet Bank of Indiana at 2.40% APY.

It might be worth going through some of the hurdles at your local credit union to get the higher CD rate. Some credit unions, such as those listed here are open to anyone, anywhere within the United States and have few restrictions. You can always find the best CD rates by going through our database of banks on our CD rates page.


CD Rates Hold Steady, But For How Long?

Today the Dow dropped 634 points or down 5.55% to 10,809. This is the lowest the Dow has been since 2008 and comes after the week of the US debt ceiling hike and downgrade of the US debt from AAA to AA+ by S&P.

Today a few banks have already lowered their rates on short and long term certificates of deposits. The bright spot is, those banks were not offering any of the top CD rates, so who really cares or knows. The current list of the top CD rates has held steady… well so far. When you find a big gap between the first and second place holders of any CD rate, usually you will see a decrease coming from the top holder.

Here is an example of the top three leaders in each CD term starting with the 6 month CD rates. We added Melrose Credit Union to show how much higher their rates are, compared to normal bank rates, plus to get the Melrose Credit Union rate you have to become a member, which is open to everyone located anywhere in the US:

6 Month CDs

  • AloStar Bank of Commerce – 1.05% APY
  • AuroraBank – 1.04% APY
  • Ascencia – 1.02% APY

12 Month CDs

  • (Melrose Credit Union – 1.31% APY)
  • AloStar Bank of Commerce – 1.27% APY
  • E-Loan – 1.26% APY
  • Sallie Mae – 1.20% APY

24 Month CDs

  • (Melrose Credit Union – 1.56% APY)
  • MainStreet Bank – 1.50% APY
  • AuroraBank – 1.46% APY
  • VirtualBank – 1.46% APY * (has the lowest rating of 1 out of 5 stars on bankrate)

36 Month CDs

  • (Melrose Credit Union – 2.07% APY)
  • MainStreet Bank – 2.00% APY
  • Doral Bank – 1.80% APY
  • AuroraBank – 1.75% APY

48 Month CDs

  • MainStreet Bank – 2.50% APY
  • (Melrose Credit Union – 2.32% APY)
  • Transportation Alliance – 2.06% APY
  • American Bank – 2.00% APY

60 Month CDs

  • (Melrose Credit Union – 2.83% APY)
  • MainStreet Bank – 2.60% APY
  • First Internet Bank of Indiana – 2.40% APY
  • Discover Bank – 2.35% APY

As you can see most banks are being competitive in the rates they offer. The biggest gaps in rates are between the 36 Month CD and the 48 Month CD, which could mean these rates will be adjusted at any time.

You can find MainStreet Bank’s CD here.

For all of our best CD rates, be sure to visit our CD Rates page.


Are CD Rates Going To Increase This Year – 2011

It has been 1 year since we wrote about the question “Will CD Rates Go Back Up In 2011” and so far rates have kept falling. Even mortgage rates are falling to their lowest levels in a year. As I write this post the United States has lost its AAA credit rating even though a default on its debt was diverted. The United States now has a credit rating of AA+ with a negative outlook, which means that the credit rating could drop again within the next 2 years unless if Congress reigns in on its overspending and debt problems.

Every program the Fed has enacted to build up the US economy has not translated into job growth or a pick up of the economy, which would translate into higher interest rates. When the Fed bought back billions of dollars worth of treasury bonds, it was speculated that interest rates would increase based on the growth of the economy and the increase of inflation. Once inflation increases so should interest rates.

In the past few weeks many CD rates were cut down a few basis points. Before the debt ceiling deal happened many were speculating that CD rates would actually increase because of Treasury yields being forced up by the small possibility of the United States defaulting. As Treasury yields increase so will interest rates, but right after the debt ceiling deal was passed, the stock market started crashing and Treasury yields actually started plummeting. Just this past week mortgage rates dropped close to 4.31%, down from 4.51% last week. It looks like CD rates will most likely continue their downward fall to record lows. How far will they go? Depends on multiple factors, but as long as the economy drags along there isn’t much hope for an increase in rates any time soon. I guess we should be asking the question “Will CD Rates Go Back Up in 2012” or more likely, ‘Will CD Rates Ever Go Back Up”. We thought last August 2010 that CD rates would surely be on the rise, since we haven’t created a magic ball and since no one can really predict the increase of rates, we made an educated guess that was completely wrong. We still have five months left in 2011 to see if rates will increase.

Here are some of the more active banks that consistently have some of the highest CD rates available nationally:

Bank of Internet cut its 12 month CD from 1.33% down to 1.20% and they also cut their short term 6 month CD rate of 1.15% down to 1.01%. The new leader for the 12 month CD term is now E-Loan at 1.26%.

First Internet Bank of Indiana currently holds the top spot for the 5 Year CD at 2.40% APY with a minimum deposit of $1,000. Discover Bank comes in second with a rate of 2.35% APY with a minimum deposit of $2,500.

If you are looking for the best CD rates, you might find better luck looking at your local credit union or a credit union that has no registration requirements like Melrose Credit Union out of New York.

You can always find the best cd rates here at bankaim.com.



Who Is Offering The Highest CD Rates?

If you are looking for the highest CD rates being offered today, you won’t find them at your local bank or at any major bank. Most of the highest CD rates are being offered at local credit unions. This makes it almost impossible for the average investor to get ahold of these rates. Reason being, you have to be a member of the credit union offering the rate. Most Credit Unions only allow specific people to join their union, whether it be school teachers, military personnel and family members or employers of major companies. Not only do you have to be a member but also most of the time you have to fulfill a list of requirements to be a member.

Melrose Credit Union has been one of the best credit unions to join who also consistently has the highest CD Rates offered. Here are the rates being offered through Melrose Credit Union:

  • 12 Month CD – 1.31% APY
  • 24 Month CD – 1.56% APY
  • 36 Month CD – 2.07% APY
  • 48 Month CD – 2.32% APY
  • 60 Month CD – 2.83% APY

These CD rates are higher than what you will find at any major bank. One year ago we posted these rates from Melrose, which you can see have dropped about one half of a percentage point.

(Reported August 2010)

  • 12 Month CD Rate – 1.76% APY
  • 2 Year CD Rate – 2.02% APY
  • 3 Year CD Rate – 2.52% APY
  • 5 Year CD Rate – 3.29% APY

To get into the Melrose Credit Union you have to fill out the registration form and pay $1. Once accepted you can then deposit the minimum of $5,000 to start earning the highest rates being offered today. Your earning will be compounded quarterly and if you decide to withdraw your money early, you will end up paying an early withdrawal penalty.

There are other credit unions offering decent CD rates but some will be harder to get into. Some have higher requirements, such as having a specific number of transactions each month using a debit card or having a direct deposit set up to your account. If you do not mind these little hassles then it’s probably better to go with a Credit Union than with a bank for investing in CDs right now. Melrose is also NCUA insured (this is the Credit Union’s FDIC insurance).


E-Loan Holds Highest 1 Year CD At 1.26%

The 1 Year CD rate has dropped from 1.33% down to 1.26% in just 12 days. The previous top earner was from Bank of Internet, which is now tied in second place at 1.20%.

E-Loan holds the top 12-month CD rate at 1.26% with a minimum deposit of $10,000. No other banks or financial institutions hold a rate close to E-Loan, as the next best 1 year CD goes to Sallie Mae, AuroraBank and Bank of Internet at 1.20%. Sallie Mae has no minimum deposit while both AuroraBank and Bank of Internet have a $1,000 minimum deposit.

There is one bank – First Foundation Bank that holds a 1.27% interest rate on the 12 month CD, but the minimum deposit is out of reach for the average investor at $25,000. Some might argue that tying up this amount of money for 12 months can be risky as rates can go up at a moments notice, or vice versa, rates can drop in a moments notice. For instance just 12 days ago you could have had a 1.33% 12 month CD rate.

E-Loan has an easy online application and has no fees to start. They also offer a compounded daily feature on their CDs.

Sallie Mae is tied for second place at the highest 12 month CD of 1.20%. With Sallie Mae you have no minimum deposit and they compound your interest daily.

AuroraBank and Bank of Internet also come in at 1.20% and both have a $1,000 minimum deposit. Both of these banks are rated 4 out of 5 stars with Bankrate, giving them a ‘sound’ rating. Sallie Mae and First Foundation Bank come in also at 4 out of 5 stars, while E-Loan has a 3 out of 5 star rating. Three stars means the bank is performing and usually is not an indicator of troubles.

Be sure to check our up to date CD Rates table for more accurate interest rates. Rates can change on a daily basis. You may also want to consider that each term serves as a lock in period for the specific interest rate. If you wish to withdraw your money before your term is up, you will be charged a penalty and fees. Be sure to read the fine print on each Bank’s CD terms. If the bank has an auto renew feature, you could be locked into an extra term you did not really want.


Navy Federal Credit Union 12 Month CD Rate At 3%

Navy Federal Credit UnionNavy Federal Credit Union is offering a 12 month CD rate of 3%, which is currently the highest yielding 12 month CD. It’s call the Special EasyStart Certificate and comes with a few stipulations. This CD requires a minimum deposit of $50 and has a maximum of $3,000. By putting the maximum deposit of $3,000 at 3% for 12 months, you would end up making $91.25 by the end of the 12 months. These are not the best rates, but if you are planning on holding onto your money, these rates are better than almost all savings account rates and earnings are guaranteed.

Be sure to visit the Navy Federal Credit Union’s website to learn more about this Special CD offer. You can also find the best CD rates by viewing our CD rates page.


CD Rates Continue Their Slide Down, But For How Long?

Over the past few years interest rates have fallen to record lows. Low interest rates are good if you are in the market to buy a house, refinance your current mortgage or car loan, but for most of us we have seen our interest rates increase on our credit cards (Thank you CitiCards for the increased rate from 14% to 29.99%, even though I have perfect credit and never missed a payment) and our interest rates fall on our certificate of deposits, to record lows.

By taking a look back just a few months we can see that interest rates are still falling. We reported on February 22, 2011 that Walden Savings Bank had a 6 Month CD at 0.75% with a minimum deposit of $1,000. That same certificate of deposit sits at 0.60% for the 6 Month term. We also reported on April 6th, 2011 that Aurora Bank had the current best 1 year CD rate at 1.25%. Now just over two months later that same CD from Aurora is down to 1.21%.

Even the longer term CD’s are seeing drops in interest rates. The 24 Month CD from SalemFive ($10,000 minimum deposit) has dropped from 1.75% on February 21st 2011 to 1.30% on June 23rd 2011. Most major banks have been lowering their rates, while many credit unions such as Melrose Credit Union out of New York has held their rates steady for the most part. Melrose’s 2 year CD has been at 1.66% APY since February. In fact Melrose holds the top spot for the 24 month CD at 1.66% with a minimum deposit of $5,000. This is a credit union that has opened its door’s to anyone located within the USA. You will want to visit their website to view their terms and conditions for opening an account.

Thus far CD rates have fallen throughout the year, while some have held steady. If you plan on investing money into any CD, its best to research as much as you can before making a decision on which bank and term to go with. You can easily find a list of the best CD rates from our CD Rate table for your research. In an unstable economy, rates can continue to fall, so it could be wise to put your money in a higher interest, longer term CD or it could be just as bad to be stuck in a CD with a low interest rate while CD rates increase.

*We cannot make any financial advise and take no responsibility for the actions people take from visiting our website. Please consult your financial advisor before making any investment decisions.


Best Discover Credit Cards 2011

DiscoverDiscover is one of the biggest credit card companies in the world. They offer some great credit cards and we want to show you the best Discover Cards of 2011.

Discover has nearly every type of credit card that you could want. Here is a quick list of cards you will see below.  So if you are looking for

  • Low APR Credit Cards
  • Rewards Credit Cards
  • Student Credit Cards
  • Miles Credit Cards
  • and so much more…

Discover has what you need.

Take a look below at the Best Discover Cards of 2011.  We’ve tried to make it easy for you so you can sort the results by what you may be looking for in a Discover Credit Card.

See the Best Discover Credit Cards of 2011

Please wait

As you can see there are a lot of Cards to choose from.

To get the best Discover credit card you can narrow down what you are looking for.

Simply decide what type of card you are looking for.  Second check out the terms, we have listed some of the important terms under each offer.  Then simply press the ‘Apply’ Button and you can fill out a quick application to be approved.

You can do it all online and it only takes a few seconds to complete.

Once you are approved you will get your 2011 Discover Credit card in the mail.

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