When are CD Rates Coming Back Up? Part 1

CD Rates are Low

CD Rates are Low

Recently we’ve seen CD rates hit all time lows.  There are a few reasons for this, and understanding them is going to help you structure your CDs in a way that will maximize your interest earned.

Obviously, credit is tight right now.  The minimum FICO scores for lending have increased, banks have arbitrarily cut the limits on credit cards and lines of credit, and banks are still scared to lend in this economy.

These factors coupled with the influx of TARP funds, has created a situation where some banks have too much money.  For these banks, their deposits are beginning to exceed their demand (or desire) to lend.

In response, these banks will have some of the lowest rates in order to slow down the amount of new CDs coming in.  Why would a bank do this? Banks don’t make money on CDs unless they are lending that money out.

As the economy recovers and credit loosens up, we’ll see an increase in CD rates.  In the meantime, look for banks that are located in healthy local economies.  These banks are generally doing more lending, and as a result will generally have higher interest rates on their CDs.  Grab their 12, 18, and 24 month terms.  Don’t go any longer than two years.  If things continue the way they are, we’ll see short term CDs get back around 3% by then.

Read Part 2 of “When Are CD Rates Coming Back Up?

Mortgage Rate Analysis – Monday October 12th, 2009

Rates are Rising

Rates are slowing on the rise.

Today the bond market is closed in observance of Columbus Day, so there is not going to be a lot of activity on the mortgage rate front.  Several lenders have published rates sheets, and several loan officers are working today so don’t hesitate to contact your mortgage professional.

What we are seeing in the rates that have been posted so far today is that the lenders are taking a more conservative approach to the day and have slightly raise all rates across the board.  Check out the best mortgage interest rates for Washington State right here.

Last week we saw a slight spike in rates right at the end of the day on Friday due to the precipitous drop in prices of mortgage back securities.

  • This week we are expecting several economic reports that potentially have the ability to slow the rise down and maybe lets us hold steady for a while.  Wednesday we will get Retail Sales and the meeting minutes from the Sept 23rd Fed Meetings.  Those meeting minutes will get analyzed to see of any hint of the feds future actions might be hiding in them.   There are several other reports due this week that if they hit their expectations, the markets should respond favorably!

This would be a good week to keep a close eye on rates are they could be a bit volatile over the course of the next week.  If you see a rate you like you should really considering locking, and not floating on the hope that they will go down.

Best CD Rates in Milwaukee Wisconsin – October 2009

If you are resident of Milwaukee Wisconsin or the surrounding area, here are some of the highest yielding CD Rates for your area.

Reviewed below are the best 6 month CD’s, 12 month CDs and 24 month CDs for Wisconsin.  Be sure to research local and national CD rates to determine what will be best for you.  Sometimes local CD rates can be higher and sometimes national rates can edge our your local market.

Remember that rates are time sensitive and it is important that you check with the financial institution you wish to conduct business with for up to date rates and quotes

Best 6 month CD rates in Milwaukee, Wisconsin:

  1. People’s Bank of Commerce:
    • 7 month promotional CD which yields 1.90% APY.
    • Minimum deposit of $5,000 is required.
  2. Bay View Federal Savings and Loan:
    • 6 month CD yielding 1.80% APY
    • Minimum deposit of $500 required.
  3. A-B Credit Union:
    • 6 month CD yielding 1.56% APY
    • Minimum deposit of $500 required.

Best 12 month CD rates in Milwaukee, Wisconsin:

  1. Prime Financial Credit Union:
    • Promotional 17 month CD yielding 2.17% APY
    • Minimum deposit of $250 required.
  2. First Service Credit Union:
    • Promotional 13 month CD yielding 2.10% APY
    • Minimum deposit of $1,000 required.
  3. North Milwaukee State Bank:
    • 12 month CD yielding 2.10% APY
    • Minimum deposit of $2,500 required.

Best 24 month CD rates in Milwaukee, Wisconsin:

  1. Hudson City Savings Bank
    • 24 month CD yielding 2.50% APY
    • Minimum deposit of $5,000 required.
    • This is a national institution and can accept deposits from any state.
  2. A-B Credit Union
    • 24 month CD yielding 2.34% APY
    • Minimum deposit of $500 required.
  3. First Service Credit Union
    • Promotional 19 month CD yielding 2.25% APY
    • Minimum deposit of $1,000 required.

Click to see the best cd rates nationwide.

All of these institutions are federally insured by the FDIC or NCUA.

If you live in the Milwaukee Wisconsin area and know of better CD rates from your credit union or bank please do all the other readers a favor and let us all know in the comments.  We at BankAim.com are a relatively small amount of people and have limited resources to find all the best deals, but collectively we can find all the best CD rates for the residents of Milwaukee Wisconsin.

Get $35 Cash Back From Bank of America Online Bill Payment

Starting on September 28th Bank of America was offering a special $25 bonus to those who paid 2 bills online within 30 days of signing up for online banking. It seems like Bank of America needed to sweeten up the deal a little and has now increased the bonus to $35 when you pay 3 bills online. This is a way for Bank of America to get their customers to use online banking.

What happens if you do not have 3 bills to pay? You do not have to worry because the $25 bonus is still available if you pay 2 bills online.

Bank of America

Key Points from the Small Print:

  • This is a special limited time offer available to existing consumer and small business customers who have not made a bill payment with Bank of America Online Banking within the last 6 months.
  • Offer cannot be combined with any other offer and is limited to one incentive per customer.
  • To get the $35, Small Business customers may instead enroll in Online Business Suite Direct Payments service and make three payments within 30 days.
  • Direct Payment Service requires Internet access, and Internet service provider fees may apply.
  • This service is not available in Washington or Idaho.
  • Incentive will be paid within 90 days of completing the requirements.
  • We may report to the IRS the value of the incentive we pay to you and you are responsible for any applicable taxes.

Promotional Page – Bank of America

Sign Up For MyAccess With Bank of America And Get $75

Bank of AmericaBank of America is at it again with a new offer for opening a new MyAccess Checking account. This is a special limited-time offer to all of the bank’s credit card customers. By signing up for the MyAccess Checking account you will receive a $75 bonus.

MyAccess Checking gives you access to both your checking and credit card accounts from anywhere, any time. It makes paying your credit card bill easier than ever before.
Here are the promo specifications:

  1. Offer is applicable only to Bank of America credit card customers who do not have an existing MyAccess Checking account
  2. Open a MyAccess Checking account online using offer code CH75OL1
  3. Fund your new account with $125 within 30 days from account opening and get a $75 credit on your account within 90 days from account opening.

Aside from the $75 cash credit, here’s what you will enjoy from a Free MyAccess Checking Account:

  • No obligations at all – no monthly maintenance fee, no minimum balance, no direct deposit required.
  • No service charge from Bank of America’s end for using non-Bank of America ATMs located in the U.S.
  • Easy account management with free Online Banking service that comes with free Bill Pay
  • 24/7 Access to customer support, online or by phone
  • A free Bank of America Visa® Check Card with Total Security Protection Package

Promo is good until 12/04/2009.
If you are interested in this deal and qualify for it, click this promotional page link or sign up directly.

CD Rates Find a New Record Low

CD Rates Equal Good InvestmentThis week CD yield averages for 3 month, 6 month and 12 month CDs have hit yet another record low.  And it does not get much better for the longer term accounts.

Bankrate’s weekly survey of large banks and thrifts taken Oct. 7 found the average annual yield for a:

3-month CD fell to 0.41% from 0.43%. That’s the lowest average since the survey began tracking 3-month CD rates in March 1989.

6-month CD fell to 0.61% from 0.62% — the lowest average since the survey began tracking 6-month CD rates in January 1984.

1-year CD fell to 0.93% from 0.95% — the lowest average since the survey began tracking 12-month CD rates in October 1983.

2-year CD fell to 1.43% from 1.46% — the lowest average rate since August 2003.

5-year CD fell to 2.23% from 2.25%. That’s still slightly above the 2.15% reached in July, which was lowest average rate since the survey began tracking 60-month CDs in January 1984.

Do not let the doom and gloom of the averages stop you from checking out our Best CD Rates available nationwide.  There are still some excellent CD rates.

BB&T Gives $100 For Opening A Free Checking Account

Open a new account with BB&T and get a $100 bonus for doing so. All you have to do is sign up and set up direct deposit or make three bill payments. This offer is only available to new clients who open a new personal checking account between now and 10/31/09 by visiting the following page – BB&T Cash Offer.

To receive the $100 bonus, new clients must do one of the following:

  1. Use online bill payment service to initiate 3 online bill payments from your new checking account within 90 days of account opening, OR
  2. Enroll in and receive a direct deposit to the new personal checking account within 90 days of account opening.

What The Small Print Says:

  • A new client is a person who is not currently a signer and who was not a signer within the last 6 months on any BB&T personal checking account.
  • Offer is limited to one incentive per household, and does not apply to second or multiple personal accounts.
  • Any accounts not in good standing, closed, and/or with a balance less than or equal to zero at the time we review account eligibility will not receive the incentive.

ING Climbs to the Top of Nationwide CD Rate Leaders

ING Direct Logo

The 12 Month Orange CD Option from ING Direct now sits at the top of the best “No Minimum Deposit” CD rates nation wide.

ING is paying a 2.10% APY on the 12 month CD term.  This offer is good for “New Money”, meaning the money cannot already be deposited with ING.

Deposits to ING are FDIC insured.  You can have the interested withdrawn into your checking or savings account monthly.

This new ING offer is much higher then the Nation 12 month average for CD rates, which is at 1.65%, and even beats out INGs long term 5 year CD which is currently at 1.75%

Compare all the Highest CD Rates Here.

American Express Stops Gift Card Fees

New credit card regulations are about to begin, thank God! So American Express has decided to put themselves out in front of their competition early. Instead of waiting for the mandatory regulations kick in they decided that sooner was better than later to make changes. On Wednesday 9/30/09 American Express announced they would eliminate all monthly fees on its gift cards. Before the announcement, American Express would charge a hefty $2 monthly fee on all gift cards that were not used for more than a year after they were purchased. This has been a touchy subject with many consumers who would complain about the fees for unused cards.

American Express Giftcards

Alpesh Chokshi, president of American Express’s Global Prepaid unit, said “Eliminating the monthly fee was now possible because the gift card business had enough scale to remain profitable without the fees. The company will continue to make money from the purchase charge, which ranges from $2.95 to $6.95, as well as from its share of transaction fees each time the card is swiped.”
Why the $2.95 to $6.95 purchase charge?

American Express gift cards can be used anywhere that accepts American Express, which allows the consumer the freedom to buy anything almost anywhere. The fee is based on the convenience of the card. American Express started offering gift cards back in 2004 which has turned into a $1 billion dollar business a year.

Click here for more information on American Express Gift Cards.

What is a CD (Certificate of Deposit) and What are Good CD Rates?

A CD or Certificate of Deposit is a product offered to consumers by financial companies like banks and credit unions.

A CD is similar to a savings account except it is a time deposit.  This means your money will have to sit for a specific term, collecting interest, in the financial institution until it matures.  At the end of the CD term you can withdraw your money plus the interest you accrued during the term of the CD.  CDs are insured by the FDIC(Banks) and the NCUA(Credit Unions) which makes them pretty much risk-free.  Being risk free makes them an extremely secure place for your money to sit and accrue interest, but with the high security comes low yields.

CD Terms usually come in 3 months, 6 months, 1 year, 2 years, 3 years or 5 years.  The Interest rates on CD’s are usually fixed for the duration of the term and increase as the term gets longer.  Meaning the longer the term the better interest you will make on the CD.

Why Choose a CD over a Standard Savings Account?

Financial institutions will pay higher interest on CD rates because your money will remain in the CD for the agreed upon term.  In a typical savings account you can withdraw your money on demand.  When your CD matures you will have accrued much more interest earnings then if your money sat in a standard savings account for the same duration.

Helpful CD Tips: (There are exceptions for everyone of these tips, but these are usually the case.)

  • CD accounts with longer terms usually come with higher earning interest rates.
  • CD accounts with a larger principle balance usually come with higher earning interest rates.
  • Personal CD accounts usually have higher interest rates then Business CD accounts.
  • Uninsured CD accounts usually have higher interest rates
  • Small financial institutions usually offer higher interest rates then large financial institutions.

What are good CD Rates?

Determining what “Good” CD Rates are is all relative.  If you compare to earlier this decade every CD rate today is bad.  The 12 Month CD nearly hit 6% in the early 2000’s.

It is important to determine what CD Term you desire, then you can review your choices and find the best CD Rates.

Determining the Amount to Deposit into your CD account?

Many CD accounts require a minimum deposit.  The higher the minimum deposit, usually, the higher the rate.  If you have a substantial amount of money you will receive a better interest rate in a Jumbo CD account.  Jumbo CD accounts typically require a deposit of $100,000 or more.

Withdrawing Interest

Some Banks and Credit Unions will allow you to have the interest earnings withdrawn monthly or bi-monthly, often times automatically deposited into a checking or savings account.  They allow this because this eliminates compounding interest in the CD account.  If you decide to leave your money in the CD account, you will not only earn interest on the original balance, but also earn interest on the interest earned from the CD account.

Early Withdraw Penalties

Early withdraw penalties are the check to make sure you do not remove your money from the CD account before the term has ended.  The amount of penalties will differ depending on the size, term and type of CD account you opened.  Financial institutions who offer insured CD accounts are required to disclose the penalty for early withdraw at the time the account is opened.

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