Ever Bank Rocks 2.5% in Long Term CD this June 2011

Certificates of deposit allow you to make more of your savings by putting it away for a fixed term, and for a fixed interest rate. Naturally, the longer you keep your money tied to the bank, the higher the interest they will give you. If you’ve got some extra cash which you know you won’t use for some time, why not place it in a long term certificate of deposit? After all, interest rates certainly beat that regular savings account.

One of our highest scorers in long term CD’s for the month of June is Ever Bank. Currently they are giving away their 5-year CD for a high interest rate of 2.5%. Coming close after is Melrose Credit Union at 2.42%, followed by Penfed at 2.25%, and finally Capital One Bank’s 1.75%. These rates apply for 5 year certificates of deposit. 5 years is the longest term that Ever Bank can accept for certificates of deposits. Other terms are 3 months, 6 months, 9 months, 1 year, 1.5 year, 2 year, 2.5 year, 3 year, and 4 year CD’s. Another good thing aside from the high interest rate is the fact that there is no account fee.

Ever Bank has been in business since 1961 and ever since then they have continuously shown growth in their company. It is one of the highest rated banks and it also boasts of a 5 star health rating. Ever Bank also shows consistent stability and expansion of assets, starting from 3 billion dollars in 2002, and increasing that to an astounding 12 billion dollars in the year 2010.

Ever Bank is a member of the FDIC, ensuring the safety of your deposits for up to $250,000.00 for each account category. Accounts protected by the FDIC include checking accounts, money market deposit accounts, certificates of deposits and savings accounts. You can even choose to increase your coverage by applying for enhanced FDIC Insurance Coverage that can go as high as $5,000,000.

Ever Bank also provides customer support and online banking services, making banking easier and more convenient for you. With the highest long term CD rates from Ever Bank, looks like people from the West Coast have something to celebrate. Ever bank is located in eight locations in Jacksonville, Florida.

Ally Bank 12 Month Highest Yielding CD

Ally Bank has the highest yielding 12 Month CD rate of 1.44% APY. With Ally Bank you can open a certificate of deposit with no money down, have no monthly fees and get their best rate guarantee. Ally Bank carries a Ten Day Best Rate Guarantee, which means that within 10 days of opening your account, if CD rates increase you will be bumped up to the higher rate automatically.

Ally Bank has a 60 days interest, early withdrawal fee for closing out your CD early. They also have a ‘No Penalty CD’ offer at a lower rate, but your money is not locked up for the term of the certificate of deposit.

How much can you earn from this rate?

If you were to deposit at least $25,000 into the 12 Month CD from Ally Bank, you would earn $360.06 in 12 months.

Ally Bank also has a competitive 5 year CD at 2.79% APY, that would earn $3,684.89 for the same deposit.

If you decide to invest into any Ally CD’s be sure to watch your maturity date, as Ally will automatically renew the account if it is not closed. Check out their current rates here.

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.

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.