CD Rates Reverse and Head Back Down in October

After slight increases in August and September long term CD rates (2,3 and 5 year certificates) have reversed course and have headed back down for the month of October.

Hopes have been high that the raises in August and September may have marked the end to the spiraling CD rates, but as it stands now long term rates are just barely above the record low we saw in the month of July.

The shorter term certificate of deposits have also reversed course albeit not as bad as the long term CD’s.

What does this mean for you?

It means not much has changed.  The same rules that applied for borrowing back in July and August and still the same as we head into November.  The decline in CD rates may not yet have reached its bottom, although hopes are still high that this is merely a short dip and soon the CD rates will rebound and continue to rise.

Remember the general rule of thumb: Go short when CD rates are low and you think they’re going to go up, and go long when interest rates are high and you think they’re going to go down.

CD Rates are obviously low and we are hoping they will increase.  So now may not be the best time to go long.

Here you can check out the best CD rates from banks across the country. Interest Checking Accounts may be a great alternative while CD rates are still so low.  Interest checking will allow you to have continual access to your money, and still be earning comparable interest to CD accounts.


Highest CD Rates In Oklahoma City, OK – October 2009

Here is a list of the highest yielding CD (certificate of deposit) rates for the residents of Oklahoma City, OK. These CD rates will come in the form of the 6 month CDs, 12 month CDs and 24 month CDs. After going through several rate pages from local banks and credit unions serving Oklahoma City and most of Oklahoma, we have found that most rates are lower than the national average, you are better off finding national institutions than with local ones.

Keep in mind that CD rates are always changing and are time sensitive in nature, so be sure to check the date of this article for accuracy. You can always find the best national CD rates from our CD rates page.

How we came up with this list:

The highest CD rates are usually kept for the longer maturities and/or those with the highest minimum deposit and since we wanted to keep in mind that our average investor does not have loads of money stashed around, we wanted to give you more options with the best CD rates that we have found.

Highest 6 Month CD Rates In Oklahoma City, OK:

  • Sooner State Bank (The Village, OK) – 6 month CD yields 2.02% APY with a minimum deposit of $10,000.
  • Communications Federal Credit Union – 6 month CD yields 1.90% APY with a minimum deposit of $1,000.
  • WEOKIE Credit Union (Edmond, OK) – 6 month CD yields 1.87% APY with a minimum deposit of $1,000.

Highest 12 Month CD Rates In Oklahoma City, OK:

  • Midfirst Bank – a promotional 15 month CD yields 2.10% APY with a minimum deposit of $5,000.
  • Sooner State Bank – 12 month CD yields 2.07% APY with a minimum deposit of $10,000.
  • Oklahoma Employees Credit Union – 12 month CD yields 2.02% APY with a minimum deposit of $500.

Highest 24 Month CD Rates In Oklahoma City, OK:

  • Tinker Federal Credit Union (Bethany, OK) – 24 month CD yields 2.68% APY with a minimum deposit of $10,000.
  • Communications Federal Credit Union – 24 month CD yields 2.55% APY with a minimum deposit of $1,000.
  • Sooner State Bank’s – 24 month CD yields 2.53% APY with a minimum deposit of $1,000.

All of the above banks and credit unions are federally insured by either the FDIC or NCUA. Be sure to check with your bank to make sure they are still federally insured and do not give them your money if they are not. If you live in or around Oklahoma City, OK and know of better CD rates please let us know.


Sovereign Bank Offers A Save & Invest CD Package At 2.25%

Sovereign Bank has come out with a limited time offer to help you save and invest your money at the same time. The Save & Invest CD Package takes your money and splits it between two CDs, with half put in a 6 month CD at 2.25% APR and the other half put in a 36 month CD term.

The key is to diversify

This is a great way to diversify your money between saving it and investing it at the same time in a high paying CD package. As half of your money earns a steady high interest rate of 2.25% for 6 months, the other part of your money will be linked to investments in the S&P 500. A great aspect of the 6 month CD term is that there is no early withdrawal penalty, which will give you access to that half of your money.

The best part about the 36 month CD investment is that unlike some longer term investments, it is FDIC insured. In an economy like ours, it is vital to make sure you put your money in a safe institution that is federally insured. The guarantee you have with the 36 month CD is that you will not lose any of your investment, the only penalty for the S&P going down will be that you will not receive any interest for the period. For every year that the S&P goes up you will receive a great interest rate.

Additional details about this offer:

  • Minimum combined deposit for the CD package is $5,000.
  • Must be opened before November 27th, 2009
  • The Invest CD matures on November 30th, 2009; the term will be 36 months from that date.
  • There is an early withdrawal penalty for the Invest CD, and within 6 days of opening the Save CD.

This great offer from Sovereign Bank offers you an easy and low risk way of both saving and investing your money. For more information, visit the Sovereign Bank promotional page here.


Highest CD Rates In Sacramento, CA – October 2009

Here is a list of the highest CD (certificate of deposit) rates available to the residents of Sacramento, California. We have compiled a list of the best CD rates for the 6 month CD, 12 month CD and 24 month CD terms. After going through many local bank rates and credit unions serving the city of Sacramento as well as Central California we have found that you will find better rates with national institutions than with your local ones.

Be mindful that CD rates are always changing and that these rates may be out of date depending on the date of this article. You can always find up to date CD rates from our CD rates page.

How we came up with this information:

As you may very well know that if you are looking for the highest CD rates you will need to look at the longer maturities such as the 60 month CD or CDs that require a high minimum deposit.

Highest 6 Month CD Rates In Sacramento, CA:

  • UFB Direct – 6 month CD yields 1.70% APY with a minimum deposit of $8,000. This is a national bank and will accept deposits from other states.
  • First Financial Bank (Sacramento branch) – A promotional 10 month CD yields 1.50% APY with a minimum deposit of $500.
  • Community Business Bank of West Sacramento – 6 month CD yields 1.45% APY with a minimum deposit of $10,000.

Highest 12 Month CD Rates In Sacramento, CA:

  • Colorado Federal Savings Bank (Sacramento branch) – 12 month CD yields 2.0% APY with a minimum deposit of $5,000.
  • Community Business Bank – 12 month CD yields 2.0% APY with a minimum deposit of $10,000.
  • iGoBanking.com – 12 month CD yields 2.0% APY with a minimum deposit of $1,000. This is an online institution with will accept deposits from any state.

Highest 24 Month CD Rates In Sacramento, CA:

  • Hudson City Savings Bank – 24 month CD yields 2.50% APY with a minimum deposit of $5,000. This bank can accept deposits from any state.
  • First Financial Bank – A promotional 25 month CD yields 2.50% APY with a minimum deposit of $10,000.
  • CitiBank (Carmichael, CA branch) – 24 month CD yields 2.25% APY with a minimum deposit of $1,000.

All of these banks and credit unions are federally insured. Make sure the bank or credit union you deposit your money to is insured by either the FDIC or NCUA. If you live in or around Sacramento, CA and you know of a better CD rate please let us know.


East Carolina Bank Offers 2.50% 13 Month CD Rate

The East Carolina Bank is now offering three competitive CD specials

  • 2.50% APY 13 month
  • 3.00% APY 25 month
  • 3.25% APY 36 month

A minimum deposit of $1,000 is required with a maximum of $90,000 per term. If you wish to have more than one open CD and you are maxed at $90,000 deposited you can open multiple CDs. You will not find these specials listed on their bank’s website but can be verified by calling or emailing the bank. These are details as of today (10/14/09).

To get these rates you will have to visit the branch to open the CD. Any resident located in East North Carolina, including the cities of Washington, Leland, Morehead City, New Bern, Currituck, Hatteras, Engelhard, Williamston, Wilmington, Hertford, Greenville and Columbia. If you are looking for a specific locations phone number just go to their website and in the “About Us” link on the top of the page click “Our Locations” to find the bank closest to you with addresses and phone numbers.

If you look at BauerFinancial they rate East Carolina Bank as a 4 star (Excellent) bank but Bankrate rates the bank as a 2 star (below peer group). You can read into both ratings on those sites to see why they rate East Carolina Bank as they do. The bank has been a FDIC member since 1934 (FDIC Certificate # 2017). Remember these competitive CD rates are only available to local residence.


Highest CD Rates In Las Vegas, Nevada – October 2009

Here are the best CD (certificate of deposit) rates for the residents of Las Vegas, Nevada. We have put these rates in the form of the 6 month CDs, 12 month CDs and 24 month CDs. After going through many local banks and credit unions serving the city of Las Vegas as well as most of the state of Nevada, we found for the most part that you will find better rates with national institutions than with your local banks.

Keep in mind that CD rates are always changing so you will want to refer to the date of this article for accuracy. You can always get the most up to date CD rates from our national CD Rates page.

How do we choose which CDs are best?

As you may already know, the higher CD rates tend to accompany the longer maturities and/or the higher deposit minimums and therefore we wanted to give our reads options in choosing which CD is best for them. Instead of putting only information of the highest CD rates, which tend to accompany the Jumbo CDs, we have come up with a list of banks and credit unions that are easier to obtain.

Highest 6 Month CD Rates In Las Vegas, Nevada:

  • Nevada Commerce Bank – 6 month CD yields 1.77% APY with a minimum deposit of $10,000.
  • Branch Banking and Trust Company (Henderson, NV) – 6 month CD yields 1.75% APY with a minimum deposit of $1,000.
  • Nevada National Bank – 6 month CD yields 1.65% APY with a minimum deposit of $1,000.

Highest 12 Month CD Rates In Las Vegas, Nevada:

  • Black Mountain Community Bank – 12 month CD yields 2.15% APY with a minimum deposit of $1,000.
  • Bank of Las Vegas – 13 month CD yields 2.10% APY with a minimum deposit of $500.
  • Mutual of Omaha Bank – 16 month CD yields 2.10% APY with a minimum deposit of $2,500.

Highest 24 Month CD Rates In Las Vegas, Nevada:

  • Nevada Commerce Bank – 24 month CD yields 2.53% APY with a minimum deposit of $10,000.
  • Hudson City Savings Bank – 24 month CD yields 2.50% APY with a minimum deposit of $5,000. This is a national bank and will accept deposits nationwide.
  • Washington Federal Savings and Loan Association – 24 month CD yields 2.50% APY with a minimum deposit of $1,000.

All of these banks and credit unions are federally insured by either the FDIC or NCUA. Be sure you check with your bank to make sure they are federally insured and only deposit money in banks and credit unions that are insured. If you live in Las Vegas or in the state of Nevada and know of better CD rates from your local bank or credit union, then please let us know.


Watch Out For Chase’s CD Early Withdrawal Penalty

chase logoWe have all heard stories about hidden bank fees from ATMs and overdrafts, but there is another fee that savers need to worry about and that is the early withdrawal penalty of a certificate of deposit (CD). This penalty usually varies depending on the length of cd and what bank the cd is with. Usually for a long term CD the typical penalty is six months of interest. However, the early withdrawal penalty at Chase Bank is much more severe.


Last year if you had a CD at 5% with WaMu and that CD is now maturing as a Chase CD, it is very important to NOT allow it to automatically renew. You have a choice to not allow your CD to renew automatically, while some banks do not practice auto renewed cds, there are still those banks who like to keep your money as long as they can. This story comes from the site Bank Deals who reported about Chase’s early withdrawal penalty.

“A friend of mine had a Chase/WaMu CD flip over. It used to be at WaMu. To Cancel this Chase $100k CD, Chase wants $3k + $25. At the new interest rate of 0.20 for 12 months, that is a 15 YEAR interest penalty for canceling the CD. I know of no other bank in the world that charges this.”

Let’s say if you are on vacation and your $100k CD or even a $10k CD is coming up to maturity date. If you forget to close the CD during the grace period or the CD automatically renews, you will be liable for the early withdrawal penalty if you decide to try to get out of a second CD term. As Bank Deals’ reader found out, the penalty is much more than the usual six months of interest. Here is Chase’s disclosure (page 11), of the early withdrawal penalty for a 12 month CD:

‘For terms of one year or more, the early withdrawal penalty is equal to $25 plus 3% of the amount withdrawn.’

Plus your penalty may eat into the principal:

‘Early withdrawal penalties may require a reduction in the principle amount if the amount of accrued and unpaid interest on the deposit is less than the penalty.’

So by missing the grace period and doing an early withdrawal of the full amount, you will have to pay a large penalty to get your money out of the CD. An example is a $10k CD for more than 1 year you will have to pay a fee of $325.

Currently the Chase CD rates are not competitive, you can easily find better deals, higher interest and less penalties by going with a different bank.

Chase’s standard 12 month CD rate for Texas is only 0.25%, which you can find better rates just by searching for them. One positive note about Chase is they are a very financially sound bank and your money will be safe.


Amboy Direct Offers 2.10% APY On 1 Year CD

Amboy Direct another online banking site is offering a 2.10% APY 1 Year CD for balances over $10,000, called the eSavings CD. The minimum opening deposit is a mere $100 but the CD rate drops to 1%. Any deposit over $10,000 will lock your rate at the 2.10% level, plus the great thing about AmboyDirect is that you can add to the CD within the first 6 months! So if you start off with a deposit of $10,000 you can continue adding to it like a savings account with much higher interest. Most certificate of deposits do not allow you to continue adding to the balance, so if you came across more cash you would have to open another CD. With the eSavings CD it makes saving so much easier and the maximum deposit you can have is $100,000 for the CD. Visit Amboy Direct here.

How To Start With Amboy Direct

Amboy Direct makes it easy to get started by having an online application form and if you are already an Amboy Direct customer you will still have to fill out the application. As soon as you submit the application your cd rate is locked at the current offering which is 2.10%. As soon as the cd matures it is converted over to an eSavings account automatically unless if you ask for it to be renewed, making it that much easier to manage your savings.

It’s important to find out about any early withdrawal penalty on any CD that you get. With Amboy Direct their early withdrawal penalty is only 3 months’ interest (unlike Chases’ massive penalties that you can read about here). A great strategy for this type of CD is to start with $100, then watch to see how rates increase over the next few months and if the 2.10% is still a competitive rate, then bump up your balance over the $10,000 mark to get the 2.10% APY. If rates increase past 2.10% then start another CD at the higher rate and go from there. Just remember you have 6 months to add to your eSavings CD.

Watch out for possible issues with Amboy Direct as they currently have 1 out of 5 stars for soundness rating from bankrate, so be careful and do not go over the FDIC’s $250,000 limit to protect your money in case of a bank failure.


When Are CD Rates Coming Back Up? Part 2

Read Part 1 To “When Are CD Rates Coming Back Up?

rates going up graphAnother reason that we’re seeing such low CD rates is that banks are able to borrow from the fed at ridiculously low rates. As of October 14, 2009, banks are able to borrow from each other at .25% and directly from a Federal Reserve bank at .50%. If this is the case, why would a bank borrow from you (for example, issuing a CD) at three, four, or five percent? The fact of the matter is that they will not.

You can use this truth to gain an advantage though, even in this economy. Banks that are doing more lending need more funds from customers, as there are minimums that banks must maintain in order to borrow from the Federal Reserve, or from other banks. These healthy banks will often offer some of the highest interest rates in order to attract more deposits. Banks really make their money on lending anyway, so it’s in the best interest of these banks to offer attractive rates.

Another way to find higher rates is to look for banks that are in trouble. You can often find the highest CD rates at these banks as they are desperate to bring in more deposits in order to hedge up their losses on loans that have gone bad. Please note that I do not advocate this method. I would rather earn a lower rate and know that my money is safe and secure. However, if you know that your funds are FDIC insured and you are okay with the possibility of having to claim your funds through the FDIC in case of a possible bank failure, go for it. Like I said, you can get some of the best rates from these banks. Be aware that FDIC insurance only guarantees the principal of a CD, not the interest earned. However, if another bank buys your failed bank, you should still get all the interest you’re entitled to.


Online Banks Offer Best CD Rates For Week Of October 12, 2009

online bank cd ratesThis past weekend was the first time in three months that no bank failures where announced, while the number of closed banks for this year is currently set at 98 failed banks. While skipping a week of no bank failures is a welcome reprieve as the FDIC is still feeling the strain of the cost of the 98 current failed banks. When a week goes by that a bank does not fail, it’s a big help to the FDIC and the funds available for the banks that will be failing in the future.

Is this a foretaste of better things that are coming? You cannot come to that conclusion just yet, while the larger banks are trying to build back their assets as the economy slowly gets better, the banks that are “too small to survive” will eventually have to close shop within the next few years causing more bank failures.

While the country is still looking forward to a best case scenario ending, we cannot help but wonder how this will affect the country’s savers. People who have lost so much not only in the stock market and real estate markets but also trying to save money and invest into CDs becomes harder. With such low interest rates you might wonder, what’s the point?

For those who have been diligently saving up, there are still options when looking for competitive CD rates than just going to your local bank. As more and more banks come online, banks that are in ‘healthy’ economies are able to offer even better than average or local rates. The best CD rates this week come from online banks. Here is the full list:

6 month CD Rates

Ascencia is offering the highest 6 month CD at 1.76% APY. According to bankrate the national 6 month cd average is sitting at 1.29% APY. Another short-term investment comes from Everbank’s Yield Pledge Money Market Account which still guarantees 2.51% APY for the first three months.

12 Month CD Rates

Last week Umbrella Bank was offering a 12 month cd rate of 2.15% but currently dropped their rate down to 2.02%. What you lose from Umbrella Bank you can make up with Amboy Direct and ING Direct this week, which are both online banks offering 2.10% APY for a 1 year CD.

With ING Direct, they have options that the customer can opt in with its Added-Value CD that will give the customer an additional 0.15% for new funds deposited. Banks are looking for new money and this allows ING Direct to offer a higher percentage. With this promo the depositor would get a total rate of 2.25% APY, the highest in the nation currently. MetLife Bank’s promo rate would also match the 2.25% APY offered by ING Direct but MetLife requires a $25,000 minimum while with ING Direct you can deposit any amount.

24 Month and 36 Month CDs

Flagstar Direct and E-Loan are at the top of the 2 year CD rate and 3 year CD rates. E-Loan is currently offering 2.37% for the 24 month CD, while Flagstar Direct’s 36 month CD is sitting at 3.00% APY.

48 Month CD Rates

The best 4 year CD rate is offered by Intervest National  Bank, which just lowered their rate from 3.20% to 3.15% APY

60 Month CD Rates

During an economical down turn its not wise to invest in CDs longer than just a few years. Even though the longer term CDs have better rates, your money will be locked in at that rate even as rates continue to increase. If you are looking to stash your money away and not worry about it for the next 5 years then this 5 year CD might be for you.

Citibank just dropped its rate from 3.50% to 3.25% APY which brings other banks close or even better than Citibank in the rates offered for the 60 month term. Ally, Discover Bank, E-Loan and Onewest Bank all offer 3.40% for this long term CD.

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