CD rates falling
Falling interest rates are good for home owners or anybody taking out a loan, but when it comes to lending your own money to others (in the form of a CD), dropping interest rates are bad. I found this out when I opened a letter from my bank last night, which had written to say they were pleased I renewed a 12-month CD at an interest rate of 3.25%. My jaw dropped. That's barely inflation!
I compared my last renewal letter from a year ago and sure enough, my interest rate for the previous 12 months was 5.20%. It dropped almost 2%! Now I'm on the prowl for a better CD rate, and you may want to do the same.
Bankaholic lists the top 25 CD rates. Using the tabs at the top of their site you can compare CDs for various time periods and dollar amounts. As I write this GMAC has the best rate (4.10%) for a 12-month CD with a minimum deposit of $500. It may pay to make a few calls and switch.
Comments
You may also want to check out bankrate.com
Posted by: James | May 13, 2008 9:53 AM
Hi! I went through the same thing. I got a CD at Indybank, 10 months at 4.15%. Had to be new money. There is usually a CD chart in the business section of the sunday LA times. I hope you find this helpful. t
Posted by: t | May 13, 2008 7:42 PM
. . . and today GMAC is 3.65% for 12 months
Posted by: Suzanne | May 16, 2008 10:22 AM
People might want to look at:
GE Interest Plus at:
http://geinterestplus.com/interestplus/
and read the prospectus.
Posted by: Suzanne | May 16, 2008 10:28 AM