Reviewing Bank CD Rates
Posted: Thursday, August 05, 2010
by Chris Duncan
Jumbo CD Investments, Inc.
I had a dream. A dream where CD rates reasonably rewarded the saver and they didn't need to take undue risk to earn a good rate of return. That dream occurred in 1999 to 2000 and back again around late 2005 to 2007. I consider rates above 5% to meet that criteria.
Here we are in the second-half of 2010 when no real end in sight to low rates. Matter of fact, rates just seem to keep getting lower. An institutional client of mine had to do a 0.35% for a 1-year CD. The current highest rate for personal investors in a one-year CD is 1.75%. That is a far cry from 5%.
Supply and demand is also a problem. With a real unemployment of over 14%, there isn't enough demand for loans and thus banks don't need deposits. The majority of banks have too much money as it is until more money flows back into the market or spending, they don't need to ante up to attract deposits.
Ultimately, we are the problem. We keep voting people into office that give us broken programs, broken promises, and spend our money like water coming out of a broken water main. We took out loans we shouldn't have and funded a lifestyle on credit. Now our government is following our example and shrugging it off to future generations. Wake up America.
Okay, off of my soapbox. Here are some real rates that will at least earn you something a little better than a sharp poke with a stick. Try out Alliant Federal Credit Union. They have a 1-year at 1.75% and a 2-year CD at 2.25%. Another credit union, Fort Knox FCU has a 23-month at 2.30%. If you want to stick with a bank, Northpointe Bank has a 5-year CD at 2.72% with no penalty after 30-months. So effectively CD Rates Bank of America are very weak. Actually, most of the large banks don't have good rates, but you can check out Capital One.
We do offer a CD placement service with CD and IRA Rates that we have found scouring the internet. We also have some ideas for earning a little better with your CDs.
CD Rates Bank of America
Chris Duncan is a FINRA Registered Representative. He works for Jumbo CD Investments, Inc., a leading CD placement and research firm. He specializes in helping clients find the best CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies.
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Top-level comments on this article: (1 total)I enjoyed what you said about we being ultimately the problem. It's an uncomfortable thing to face, but I believe you're right!Thank you. It is always easier to want to blame others, but until we start looking inwards I don't think things will change much.
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