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.


Walden Savings Bank Offers 6 Month CD Rate At 0.75%

Looking for a short term place to store your cash? Placing your money into a certificate of deposit will earn you more than most bank savings accounts. By putting your money into a 6 month CD, you not only earn more than the average savings account, but you also don’t have to wait too long before you have access to that cash again. Short term CDs are a great way to earn a quick few bucks while you wait to make that purchase or if you are waiting to use that cash. I recently placed my money into a 6 month CD because I knew I could earn more than leaving it in a savings account, but also wanted the ability to use my money in the next 6 months to buy a house. Right now isn’t a good time to buy a house, so my money was just sitting in my bank account collecting dust, or a few pennies from its extremely low and offensive interest rate.

Walden Savings Bank has been around for over 135 years and has always provided some of the best CD rates to its customers. Walden is currently offering its six month CD rate at 0.75% APY, with a minimum deposit of only $1,000. This CD will automatically renew at the end of its term so its important that you let the bank know your intentions during that time, otherwise you might get stuck in another 6 month term. There are penalties for early withdrawals so be sure you read the fine print.

Walden Savings Bank is headquartered in Montgomery, New York and is a federal chartered mutual savings bank that opened in 1872. Walden Savings Bank maintains 11 full service branches in southeastern New York (Walden, Washingtonville, Montgomery, Cornwall-on-Hudson, Pine Bush, New Windsor, Gardiner, Scotts Corners, Circleville, Middlehope and Florida). You will want to visit one of their branches to learn more about their savings and other options offered.

Be sure to check out our most up to date CD rates table to find the best rates for any CD term.


Bank Of Internet Tops 2 Year CD Rates

Who would have ever thought that another bank could overtake Melrose Credit Union on any of the long term CDs. Melrose cut their rates across the board on Tuesday, causing a small ripple effect on the top CD rates charts. As soon as Melrose dropped their rate to 1.66% APY, Bank of Internet assumed the lead at 1.72% APY.

Bank of Internet is based out of San Diego, CA and is paying 1.72% APY on deposits over $1,000. This is a rate they have offered since the beginning of November.

To put things into perspective, this rate is three-quarters of a point less than what was offered for the 2 year certificate of deposit last December 2009.

Here is a list of the best available 2 Year CD rates:

  • Melrose Credit Union from Queens, New York at 1.66% APY with a minimum deposit of $5,000.
  • Stonebridge Bank out of Philadelphia at a rate of 1.65% APY with a minimum deposit of $500.
  • Discover Bank, owned by the major credit card company at a rate of 1.60% APY with a minimum deposit of $2,500.
  • Colorado Federal Savings Bank from Colorado at a rate of 1.60% APY with a minimum deposit of $5,000.

We have posted these banks and credit unions because they allow anyone nationwide to open and invest in their CDs, either online, at the local branch or through the mail.

There are no requirements that would keep the average person from opening an account with these financial institutions. Unlike other credit unions, Melrose has no restrictions on who can open an account with the union. There is a $1 fee and the requirement of having a savings account funded with $25.

Be sure to compare these rates with the most up to date CD rates from our database of banks.


Best CD Rates For Week Of November 29, 2010

There isn’t much to report for this week as we come out of a long holiday weekend. We expect rates to continue their downward slide and could see a shake up in the rates we track sometime this week. It might be wise to lock in some of these CD rates if you are sitting their wondering if rates will increase or decrease. Your best bet in this economy is to lock in short term rates before they fall even further.

Melrose Credit Union still holds most of the top CD rates we track. We expect Melrose to lower their rates across the board this week, that’s if they keep with their cycle of cutting rates every 3 months. Their 3 month mark since the last rate cut is this week.

Here are the best CD rates currently available nationally

*TermBankNovember 29Last Week
3 Month CDSanibel Captiva0.95% APY0.95% APY
6 Month CDBank of Internet1.15% APY1.15% APY
12 Month CDMelrose Credit Union1.51% APY1.51% APY
24 Month CDMelrose Credit Union1.76% APY1.76% APY
36 Month CDMelrose Credit Union2.27% APY2.27% APY
60 Month CDMelrose Credit Union3.03% APY3.03% APY

These banks and credit unions qualify for our listing because they offer their CDs to anyone nationwide. As with any investment, certificates of deposits can change at a moment’s notice, be sure to check our updated CD rates table for the most up to date information.

Melrose Credit Union is not your normal credit union as they allow anyone, anywhere to join. Most credit unions have strict requirements, but Melrose’s only requirement is a $1 fee and to hold $25 in a savings account.

We encourage you to visit Bankaholic’s post about their visit to Melrose’s New York office and why they can pay such high rates, while other major banks and financial institutions continue cutting their rates.


Best CD Rates For Week Of November 22, 2010

Tis the season to give thanks and in the realm of investing, there isn’t too much to give thanks for. Over the past year we have seen CD rates continue their downward fall, with a few bright spots like iGObanking, when they where offering the highest 2 year CD, which even beat the highest 3 year CDs. Even now as banks continue to cut rates, Melrose Credit Union continues to provide outstanding products. This small, single office in Queens New York is offering the best nationally available return on the 12-month, 24-month, 36-month and 60-month certificates of deposit.

The other two banks, Sanibel Captiva Community Bank from Florida and Bank of Internet based out of San Diego California offer the best 3 month and 6-month terms.

All of the major banks, such as Chase, Band of America, Wells Fargo, stopped offering competitive rates ever since the financial crisis started in 2008.

*TermBankNovember 22Last Week
3 Month CDSanibel Captiva0.95% APY0.95% APY
6 Month CDBank of Internet1.15% APY1.15% APY
12 Month CDMelrose Credit Union1.51% APY1.51% APY
24 Month CDMelrose Credit Union1.76% APY2.00% APY
36 Month CDMelrose Credit Union2.27% APY2.27% APY
60 Month CDMelrose Credit Union3.03% APY3.03% APY

CD rates can change at a moment’s notice so be sure to check our CD rates page for the most up to date information.

We list these banks and credit unions because they offer their rates to anyone nationwide.

Unlike most credit unions, Melrose is open to savers regardless of where they live and work. Anyone can open an account with Melrose for only a $1 joining fee and a minimum of $25 kept in a savings account.


Top 2 Year CD Rates Drop Below 2%

It didn’t take long for iGObanking to realize how well they were paying on their 2 year CD. Just last month they were paying almost half a point higher than the next leading 2 year CD, then dropped their rates to 2.00%, still beating out the competition. Now iGObanking has dropped their 24 month rate to 1.00% APY, lower than the highest leading 6-month and 12-month rates, which are 1.15% and 1.51%.

This might be a sign of things to come as rates continue their slide down the charts. No other bank or financial institution is close to paying 2% on any 24 month CD. Keep in mind that the national average of a 2 year CD is sitting right around 0.77% APY.

Here are the next best 2 Year certificates of deposit:

  • Melrose Credit Union at 1.76% APY with a minimum deposit of $5,000 and is located in Queens, NY.
  • Presidential Bank at 1.75% APY with a minimum deposit of $1,000 and is located in Maryland, Virginia and Washington D.C.
  • Bank of Internet at 1.72% APY with a minimum deposit of $1,000 and is an online bank from San Diego, CA.
  • Discover Bank at 1.65% APY with a minimum deposit of $2,500 and is the online bank owned by the credit card company.

All of these banks and credit union allows anyone to join or buy their CDs. Melrose Credit union allows anyone to join for only $1. They impose no restrictions and are located out of Queens, New York.

Be sure to compare all of the best CD rates from our certificates of deposit database.


Best CD Rates For Week Of November 15, 2010

The only major change to the CD rates board for the start of this week is the new leader on the 3 Month rate. Sanibel Captiva Community Bank from Fla., is now offering their 3-month CDs at 0.95%. The previous leader was Nexity Bank who recently dropped their 3 month CD from 0.86% APY down to 0.75% APY.

iGObanking still offers the best 24 month rate and Melrose Credit Union basically takes up the rest of the top spots. Melrose consistently holds the top rates for not only the 12 month CDs but also the 36 month and 60 month terms.

Bankaholic recently sat down with the people at Melrose Credit Union and asked them why they are able to offer such high CD rates, view their responses here. It’s encouraging to see a Credit Union that is actually working for the people and giving back the money made in lower loan rates and higher savings rates. With their current business plan and how they invest their customer’s money, I believe they will hoard the top spots of most of the CDs for a long time to come.

*TermBankNovember 16Last Week
3 Month CDSanibel Captiva0.95% APY0.86% APY
6 Month CDBank of Internet1.15% APY1.15% APY
12 Month CDMelrose Credit Union1.51% APY1.51% APY
24 Month CDiGObanking2.00% APY2.25% APY
36 Month CDMelrose Credit Union2.27% APY2.27% APY
60 Month CDMelrose Credit Union3.03% APY3.03% APY

Certificate of deposit rates can change at a moments notice. Be sure to visit the bank or credit union’s website to see if the rates posted are still up to date.

With most credit unions, you are required to fulfill a bunch of requirements before being allowed into the credit union. Melrose has an open membership, so that anyone anywhere can join after paying a $1 fee and holding $25 in a savings account. Be sure to check out their website and download the application, fill it out and return it with the specified documents. Once you become a member you will have access to the best CD rates available nationally.

You can always compare these rates with other banks and financial institutions on our CD rates page.


iGObanking Drops Highest 24 Month CD Rate

I guess all good things come to an end, at least in this economy. iGObanking just lowered their 24 month CD rate from 2.25% to 2.00% APY, which is still over a quarter point higher than the next leading rate from Bank of Internet at 1.72% APY. Even though iGObanking dropped their 2 year CD rate to 2.00%, that rate is actually third best for the 3 year CDs.

iGObanking is an online division of Flushing Savings Bank in New York.

Here are the next best nationally available 2 year CD rates:

  • Melrose Credit Union at 1.76% with a minimum deposit of $5,000, based out of Queens, New York.
  • Bank of Internet at 1.72% with a minimum deposit of $1,000, based out of San Diego, California.
  • Discover Bank at 1.65% with a minimum deposit of $2,500, the online bank of the major credit card company.

All of these banks and credit unions allow anyone to purchase their certificates of deposit and impose no other restrictions.

Melrose Credit Union allows anyone, anywhere to join for only $1 and must keep at least $25 in a savings account.

Be sure to check out our best CD rates leader-board for the best CDs in your area.


TD Bank Mortgage Rates and MTG Process Reviewed

TD Bank services customers in states along the east coast.

TD Banks Slogan is “Americas Most Convenient Bank”.

We’ll review there mortgage rates and then review just how convenient they are able to make your banking experience.

Each of the loan scenarios will be based on an 80% loan to value and 1 point.

30 Year Fixed

  • Rate of 4.125%
  • APR of 4.263%

15 Year Fixed

  • Rate of 3.375%
  • APR of 3.615%
  • Note: The 15 year fix at 0 points is only 3.625% with an apr of 3.719%.
  • TD’s 15 year fixed product is one of the better we have seen.

Lets compare these rates to the nations average mortgage rates. (Based on Freddie Macs Primary Mortgage Market Survey).

  • Average 30 year with 0.8 points = 4.23%
  • TD Bank 30 year with 1 point = 4.125%
  • Average 15 year with 0.7 points = 3.66 %
  • TD Bank 15 year with 0 points = 3.625%

As you can see TD Bank is lower than the national average.  There 15 year fixed mortgage is excellent right now and worth taking a look into.

Is the loan process “convenient”?

As I browse through TD Banks website I notice it is easy to navigate and find my way around.

They have some pretty cool programs like the Mortgage Rate Security, If rates drop after you have made 12 timely payments, you may be able to lower your rate without refinancing.  Or the Hassle Free Mortgage Guarantee which is there pledge to you that your mortgage process will go smoothly.

They also have a rate watch feature that will notify you via email when rates hit your goal.

Use our Mortgage Calculator to figure out your payments.

Now obviously I haven’t gone through the mortgage process with them so I cannot speak to that, but according to MyBankTrackers bank review TD Bank has 2 out of 5 stars based on 155 user reviews.  This is not a good rating.  This rating is based on TD Bank as a whole, not just there mortgage department.

If you have had a good or bad experience with TD Bank please share in the comments below.

TD Bank serves Connecticut, Delaware, Washington DC, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia.


Wells Fargo’s Best CD Rates

For most major banks you will never find a great CD rate in this economy. If you are looking for the best certificate of deposits, you are better off looking at credit unions or smaller banking institutions.

Wells Fargo is no different than Bank of America, Chase, US Bank or any other major banking institutions. If you feel more comfortable putting your money with a large bank then it’s all about where you look. None of the certificates of deposit offered at Wells Fargo will come close to the national averages for CD Rates.

If you take a look at our last CD Rate board For September 3rd, you will see how low these rates are from Wells Fargo.

Take a look at how low the short term rates are from Wells Fargo:

Those were the interest rates on a minimum of $2,500 deposited.

If you can increase your minimum to $5,000 Wells Fargo will give you better rates on its longer ‘odd’ term CD rates.

  • 23 Month CD – 0.90% APY
  • 33 Month CD – 1.15% APY
  • 54 Month CD – 1.90% APY, which the national average return for a 60 Month CD is 1.72% APY.

The main reason why someone would want to buy into these CDs is for security reasons. Most major banks are insured and while the U.S. government won’t allow them to fail, smaller banks and even some credit unions are still at risk.

Long term certificates of deposit are still not impressive and probably isn’t worth your time or money to buy at this current period of time. You are more likely to make your money back by investing into something tangible, real estate or something else that you can keep your cash free from penalty. CDs require you to keep your money in for the term or risk losing most all of your interest and possibly even some of your principle.

Be sure to check out our CD rate tables for the best deals nationally.

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