Wednesday, April 15, 2009

Searching for a good CD rate. . .

I just had a CD come due. It was a 6 month CD paying 3.25%. It was good while it lasted. Now a 6 month CD at that same bank is paying a whopping 0.25%. I said thanks but no thanks.

So, wheres a good place to find CD rates? BankRate.com. I've talked about this web site many time in the past and it's worth you visiting the site from time to time.

In doing my CD search, BankRate is giving me 7 banks paying from 2% up to 2.25%. This is a much higher rate than the 0.25% I'm currently being offered.

So it looks like I'm going to open up an CD online at GMAC Bank paying 2.25% APY.

What's your highest interest earning rate right now and what bank is it with?

3 comments:

todd said...

You might consider the 5-year CD from Discoverbank. The rate is currently 3.5-3.6% APY, and the early penalty is 6 months simple interest. This is a great option for people (like me) looking at 12-month CD’s, because the break even is about 1 year + 2 months, and therefore if rates continue to drop I can keep the 5-year CD with it’s higher interest rate for several more years before selling.

Todd C said...

Todd (I like your first name) great point. 6 months of simple interest is a very low penalty worth taking.

Thanks for the tip and comment.

Todd C said...

Todd (I like your first name) great point. 6 months of simple interest is a very low penalty worth taking.

Thanks for the tip and comment.