July 30th, 2010
[Note: Updated: 8/23/10]
I haven’t posted rates for sometime. So here are a few that I’m aware of. These rates are for personal deposits. Rates are posted as the APY unless stated otherwise.
Alliant Federal Credit Union — 1-Year at 1.75%, 18-months at 2.00%, 2-year at 2.25%. They pay interest at maturity only. They also offer these rates for IRAs. Membership is open to everyone through the National PTA. There is a one-time $25 charge.
Already have Alliant, try Fort Knox Federal Credit Union. 14-months at 1.75% and 23-months at 2.30%. They can pay interest monthly if you need the income and also do IRAs. Membership is open to everyone through the American Consumer Council/Kentucky Chapter. It costs $15.00.
If you don’t like credit unions and want a bank, try Sallie Mae Bank. They have a 15-month CD at 1.55%. There is an online process to complete to open your CD.
It appears that we will have this low rate environment for quite some time. If you want to hedge against the possibility of lower rates (the longer the Fed holds Fed Funds at 0% to 0.25%, the lower rates will go) then consider a longer-term CD. We have a bank offering a 10-year CD above 2.70% APR with a 90-Day Early Withdrawal Penalty. If you take the penalty and close after 1-year, you would net above 1.73%. After 2-years, it would be above 2.21% and after 3-years above 2.37%. $50,000 minimum.
I can’t provide the bank information for free on this one, but the calculated rates are net of our fees.
Feel free to share CD rates you are finding or contact us if you want info on the 10-year.
Have a great weekend.
-- By +Chris Duncan