While the Fed interest rate cut to nearly 0% is good for borrowers, it has also reduced the interest rate that savers can get. Very quickly, the interest rate for 5 year CDs dropped from 5% to 3.5%. However, some banks are marketing aggressively during this time and it's possible to good interest rates, e.g. 3.5% on a savings account, if one searches.
Earn Close to 4% on Your Cash by Smart Money at Yahoo! Finance shares savings accounts with yields for 3.15% to 3.55% with minimum deposits of $100 or less. In addition, the article reports 1 to 2 year CDs that pay up to 3.75%.
Here are two sites which can help find higher interest rates.
Our bank recently offered a six month promotion for a 3.5% savings account with a minimum balance. I took advantage of it and moved almost all all our cash and money market fund to this account. When the promotion expires, I'll be checking the above site to determine what other higher interest options are available at the time.
For more on Ideas You Can Use, check back every Tuesday for a new segment.
This is not financial advice. Please consult a professional advisor.
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2 comments:
CheckFinder.com is a good resource to find other high yield checking accounts offered online by community banks.
Check out the best rates on short term deposits at big banks versus those at select community banks from CheckingFinder.com. Community banks continue to offer higher yields on short term deposits to serve as economic engines.
COMMUNITY BANKS
Florida Central Credit Union 6.01 FL
First Robinson Savings Bank 6.01 IL
Union State Bank/Bank of Atchison 6.01 KS
Communications Federal Credit Union 5.25 OK
Connexus Credit Union 5.15 WI
Keystone Bank 5.15 AL
First New England Federal Credit Union 5.15 CT
Three Rivers FCU 5.01 IN
Legence Bank 5.01 IL
Community Bank of Pleasant Hill 5.01 MO
Community Bank of Raymore 5.01 MO
United Heritage Credit Union 5.01 TX
MEGA BANKS
• ING decreased their highest rate offered by 25 basis points, from a 2.50% APY on a 1 year CD to a 2.25% APY on a 4 year CD.
• Schwab decreased their 18 month CD rate by 15 basis points, from a 2.65% to 2.50% APY.
• E*Trade decreased their 5 year CD rate by 30 basis points, from a 1.70% to 1.40% APY.
• E-Loan increased their 6 year CD rate by 50 basis points, from a 3.50% to 3.70% APY
• Washington Mutual decreased their 5 year CD rate by 50 basis points, from a 3.00% to 2.50% APY.
• AARP Financial Savings Center decreased their savings rate by 50 basis points, from a 2.00% to 1.50% APY.
• Wachovia increased their 17 month CD rate by 15 basis points, from a 1.85% to 2.00% APY.
• E-Loan currently has the highest rate at 3.70% APY on a 6 year CD.
• E*Trade currently has the highest savings rate at 2.50% APY.
Courtesy of BancVue.
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