Quote:
Originally Posted by poundwise
You are right about the minimum, however, there is really not much point in opening an CD with less than $500, is there?
And, desperate or not, they may need to offer a little more incentive. Some other current offers:
GMAC 6 or 9 month CD 3.60% APY, 12 month 3.90% APY, $500 minimum
ELOAN 6 month CD 3.50% APY, $500 minimum
IndyMac Bank 12 month CD 4.15% APY, $5K minimum
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The problem with all CD offerings lately is two fold. One these rates are not preserving the purchasing power of the funds relative to inflation, which everyone knows is not the "Core" inflation the Fed touts as being in the 2-3% range. Plus toss in the fact that you've got to pay federal & state taxes on this interest, then why bother?
Second, while I know all these institutions are FDIC insured, I am still not a big fan of them because they are up to their necks in mortgage loan toxic waste. All the banks offering these "o.k." rates are the same ones that got us into this mess, so I just do not trust them. I do not remember the details, but I do remember many bankers getting off scott free from the 90's S&L debacle and depositors not getting all their money back.
My everbank intro rate of 4.5% runs out in 2 months, all the banks will be cutting 1/4 a point after the fed does the same. So once its all said & done what is a saver to do? Your thoughts please, thank you.