DiscoverBank is advertising a 12-month CD account with a 1.50% APY. Click here for more information.
I received an email from TD Ameritrade today and they are offering a 1.50% APY on their 3-month cd for a limited time.
Maturity: 3 months
Minimum deposit: $25,000
Maximum deposit: $250,000
Rate: 1.50% APY
To qualify for the CD, follow these simple steps:
- Register for this special offer by clicking on this link and then choosing your preferred method of deposit.
- Make a new deposit of $25,000 or more by 02/26/10.
- Log on to your account and use the access code from the follow-up email to purchase your CD by 03/03/10 – you’ll get the most current rate, which is subject to change.
- Your CD will not be confirmed until you make your qualifying deposit and complete your purchase.
Capital One is offering 5.5% APY on a 7-year CD. This rate is among the highest yielding CDs available now. If you do not need the money for 7 years, this a very good investment with a low degree of risk. A CD can also be used to diversify your investments.
Here are some of the other CDs from Capital One (minimum $5,000):
CD Term Interest Rate APY
6 months 2.96% 3.00%
1 year 3.68% 3.75%
18 months 4.32% 4.41%
2 years 3.92% 4.00%
30 months 3.92% 4.00%
3 years 3.92% 4.00%
4 years 4.88% 5.00%
5 years 4.40% 4.50%
7 years 5.35% 5.50%
10 years 5.35% 5.50%
I have a 13 month Washington Mutual CD that’s going to mature at the end of September 2007, but I need funds in my checking account and I want to withdraw early from my CD. I called up the bank about the interest earned to date. I have roughly $1400. Then I asked about the penalty if I withdraw early.The representative told me that the penalty is a $1570 fee. That means I will have a loss in principal if I withdraw early. Clearly, it’s not a smart move to withdraw early, since I’m half-way through the CD terms. I’ll just have to tranfer funds to my checking account from other accounts, and not touch this CD account until it matures.
Empty Spaces Inc. said…
have you looked into everbank.com’s icelandic CD? it pay ~10%
EverBank offers a 13.10% APY 3-Month Icelandic krona CD. The yield looks very attractive so I did some research on this CD. The CD is FDIC-insured. And the reason why the yield is so high is because Iceland is combating inflation and the banks are offering high-yield CDs to combat inflation. So what’s the big catch on this CD? I found out that you can lose on principal in the CD, because the krona currency fluctuates. Also, there’s a exchange rate fee. The conversion fee is three quarters of a percent (0.0075%) for CDs less than $100,000.
The way it works is that your US Dollars get converted to Icelandic kronas and then at maturity if you decide to withdraw, the kronas will be converted back to US Dollars. The exchange rate then could be different from the start of the CD.
Does any one has experience with Icelandic CDs? Do you think it is low risk? Are they are other catches I am missing?
One strategy to take advantage of the interest rate upswing is to purchase several multiple-term CDs, also known as CD ladder.
Suppose you have $5,000 to invest. You would purchase a $1000 1-year CD, a $1000 2-year CD, a $1000 3-year CD, a $1000 4-year CD, and a $1000 5-yr CD. As each CD matures, you would renew it for the new 5-year CD. This way you will always lock up at the highest interest rate.
Let’s take a look at a real example with ING DIRECT’s CDs:
1 Year 3.60%
2 Year 4.00%
3 Year 4.15%
4 Year 4.25%
5 Year 4.35%
If you do a CD ladder with equal amounts for each of the years, your average interest rate would be 4.07%. This is higher than the 1-year CD and more flexible than the 5-year CD alone. With a CD ladder you will have a CD maturity every year and you can take that money out if you happen to need it during that time.
CD ladder is a great strategy to participate in the highest yields as interest rates go up.