This August we’ve seen a lot of things going on in the economy, there was a sudden fall in the market, the U.S. rating got downgraded, and CD rates dipped to its lowest in over 50 years. Now that it’s the end of August, certificates of deposit are holding steady to their numbers since last week. Below are the top ten contenders for 1 year certificates of deposit:
1. AloStar Bank of Commerce
Rate: 1.27% APY
Minimum Deposit: $1,000
2. E-Loan
Rate: 1.26% APY
Minimum Deposit: $10,000
3. Sallie Mae
1.20% APY
Minimum Deposit: $0
4. Aurora Bank
1.16% APY
Minimum Deposit: $1,000
5. Discover Bank
1.15% APY
Minimum Deposit: $2,500
6. Doral Bank
1.15% APY
Minimum Deposit: $1,000
7. Colorado Federal Savings Bank
1.15% APY
Minimum Deposit: $5,000
8. Ascencia (a Division of PBI Bank)
1.13% APY
Minimum Deposit:$500
9. Giantbank.com
1.11% APY
Minimum Deposit:$2,500
10. New Dominion Bank
1.10% APY
Minimum Deposit: $1,000
The National Average is currently at the low 0.41% so the rates above are already quite a steal. Now that interest rates are so low, people tend to wonder whether it’s a good idea to invest their money now. Well, the only other options are to either park their money in a savings account, or brave the volatility of the stock market. Most investors choose to play it safe by keeping their money out of the stock market, and since savings accounts always give the lowest rates, most investors choose to invest their cash in short term CD’s while waiting for the market to calm down. This could be a fairly secure investment move that can keep money safe until better times.
