American Express Offers A Decent 36 Month CD

American Express is not only a credit card company, but also a leader in investments, high yield savings accounts and certificate of deposits. While most major banks and financial institutions keep their rates so low, its almost as if they don’t want your business, American Express keeps their rates competitive. For instance, Bank of America offers the same 3 year CD at a rate of 0.75% APY, now how is that worth buying into? I found it hard to believe that this major Credit Card company offered decent rates on CDs.

Right now you can get their 36 Month CD at 1.85% APY and while that isn’t the best rate available, they offer a sense of security. American Express is rated one of the most stable financial institutions and Bankrate gives them a 5 of 5 star soundness rating.

There are no minimum deposits or account fees when you sign up for any of American Express’s CD products.

Currently American Express is number 11 for having the highest 3 year CD. Here is a short list of the best 36 month certificate of deposits available:

While you can get better rates from one of these other banks or credit unions, American Express will keep you feeling like your money is secure.

Be sure to check out our CD rates board for the best certificate of deposit in your area.

Bank Of America Cuts Long Term CD Rates

Bank of America dropped some of its certificate of deposits this past week to follow a trend of cutting rates.

Bank of America, out of Charlotte, N.C cut its rates on the following CDs.

  • 5 Year CD dropped by 0.50% to 1.75% from an average of 2.25%.
  • 4 Year CD rates dropped from 1.75% to an average of 1.45%.
  • 3 Year CD rates dropped to an average of 1.1% from 1.5%.

The falling rates not only on CDs but also on money-market rates are leaving people with fewer places to stash cash and actually make a decent return. Money Market rates have dropped to 0.75% nationally, not making it more attractive to investors. Nationally CD Rates are at all time lows with bank institutions. Credit Unions are popping to the top of the charts, offering the highest CD rates for just about any term.

When the Nation’s largest bank lowers their long term CD rates, this could signal that other banks will follow in their footsteps. Now might be the best time to get into a long term CD with a decent rate, before other banks follow the coming trend. Large banks can offer lower rates because they have other products that can grab the attention of new customers, such as many different types of checking account promotions.

For the average person looking to stash their cash for a short amount of time, the options are limited. Cal Brown, vice president of planning at the Monitor Group in McClean, VA is advising clients to put their extra cash into short term bond funds. Bonds are currently yielding more than 3%, much higher than some of the highest CD rates.

Tennessee Commerce Bank Offers High CD Rate

The Tennessee Commerce Bank is offering a 2 year CD rate of 2.10% APY and a 3 year CD rate of 2.50% APY. The minimum deposit of both accounts is only $2,500. Both of these high interest CD rates come with an early withdrawal penalty of 6 months’ interest and are available nationwide.

It is easy to fund a new account with Tennessee Commerce Bank, either through ACH transfer, wire or check. Applications can be submitted through their website, by mail or even fax. Two forms of ID will be needed to open one of the CDs. Sending money via a wire transfer is free, but an outgoing wire will cost $25.

To close your CD at maturity you will need to submit the request in writing, otherwise the CD will be renewed for another term.

Tennessee Commerce Bank has a 2 of 5 star soundness rating through Bankrate and is FDIC insured.

Be sure to visit their website here for more updated CD rate offers.

First Federal CD Rates Offered

First Federal is now offering a 5 year CD rate of 3.5% APY with a minimum deposit of $1,000 and a 3 year CD rate of 2.65% APY with a minimum deposit of $20,000, this rate drops to 2.40% APY for a $1,000 minimum deposit. Both of these CDs come with an early withdrawal penalty of 180 days’ interest.

The First Federal CDs are limited to residents of North Carolina, South Carolina, Georgia and Florida. You can apply for one of these CDs online and transfer funds through ACH transfer.

You can lock the rate by submitting your application online. The maximum you can deposit into one of these CDs is $50,000 and upon maturity First Federal will mail you a check.

First Federal is also offering a high yield interest checking account called Moolah Checking and is currently paying 2.51% APY for any account up to $25,000. You can find branches in North and South Carolina.

First Federal is rated 3 of 5 stars from Bankrate and is FDIC insured.

You can visit their website here to find more up to date CD Rates.

Highest 3 Year CD Rates Yield 3.0% APY – November 2009

You may find it hard to find a 3 year CD rate above the 3.0% APY mark. Nationwide we have found the top 36 month CD rates coming from either credit unions or national banks instead of local banks.

Flagstar Bank has a 3 year CD yielding 3.0% APY. The minimum deposit is $500 to receive this rate from Flagstar. If you look at Flagstar’s current rates, their 30 month CDs are yielding 2.16% but if you jump up 6 months to their 36 month CD, you will yield a more lucrative rate of 3.0% APY. On their site you will have to enter your zip code before getting the interest rate in your area. After doing a few zip codes from major cities, we have found that the 3 year CD rate of 3.0% APY is common to most locations.

Alliant Credit Union has the same 3 year CD rate of 3.0% APY but comes with some strict requirements for eligibility. To be eligible for this 3 year CD rate you must deposit atleast $50,000 and fit into the following requirements:

  • live or work in the following Chicagoland communities: Arlington Heights, Bensenville, Des Plaines, Elk Grove, Elmhurst, Franklin Park, Harwood Heights, Itasca, Mount Prospect, Northlake, Niles, Norridge, Park Ridge, Prospect Heights, River Grove, Rolling Meadows, Rosemont, Schiller Park, Wood Dale and Chicago O’Hare Airport property.
  • Any person related by blood or law to an existing member.
  • Domestic partners of unmarried members.

If you cannot meet the minimum requirements for their 3 year CD rate, you can still earn the high CD rate of 2.85% APY.

CD rates are time sensitive in nature so please view the date of this article for interest rate accuracy. If you know of better 3 year CD rates then please let us know.