With interest rates dropping I decided to compare CD rates from a few national banks. These rates are as of January 27, 2008 and of course are subject to change. Additionally, each of the bank may be running specials that are not considered here.
For those with $10,000 or more to invest, the E-Loan CD is a pretty good deal. If like me you only have small amounts to invest then ING Direct or Washington Mutual may make the most sense. I currently have two different $1,500 6 Month CDs. One with ING Direct at 5.15% and the other with Washington Mutual at 5.10%. Earlier this month I signed up for the Washington Mutual Savings for Success account that earns 6.50% that is essentially a CD that you can invest $25 to $500 in every month for 12 twelve months before it matures.
It would seem that in hindsight, I should have signed up for longer terms, but if I recall correctly the 6 month terms offered the highest interest rates. The banks probably were well aware that rates were going to be dropping. My ING Direct CD matures in March and my plan is to add another $1,000 to it and roll it into another CD. I need to do some more homework to determine where is the best place to put my $2,500 and for how long.
2 comments:
And don't forget credit unions. Credit unions often have higher rates than banks especially in a falling rate environment. They don't react as quickly as banks do. If the credit union is federally insured your deposit is just as covered as an FDIC insured bank CD.
ChrisCD
Jumbo CD Investments, Inc.
That is a good point about credit unions. If you can join one then youcan usually get better rates on savings and loans.
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