5.40% APY CD rates

[poundwise]

I noted today that https://www.igobanking.com is offering an 8-month CD promo at 5.40% APY. The minimum is $500.

AmTrust Direct currently has a 1-year CD rate of 5.41% APY as well. The minimum is $1K.

E-Loan, similarly, offers are a 1-year rate of 5.41% APY but requires a minimum of $10K to open.

Just FYI.

[Ima saver]

Thanks poundwise. so far, I can do better than that locally. I just ask the presdent of the bank.

[safari]

Personally, I don't think that now is a good time to lock your money in a CD. There are better options available without losing the liquidity of your assets. FNBO Direct is still offering 6.00% APY, which won't change until 09/28/2007, and there are also several online savings accounts offering rates above 5.00%. For example, GMAC has held its rate at 5.30% APY for a while now. That's only 0.11% lower than AmTrust Direct CD. With a $10K deposit, I'd earn only $11 more. Not worth it. One can argue that by locking in a CD rate one can guarantee that rate in case the rates go down, but this is highly unlikely. The Fed will either keep the current rate unchanged or raise it in the near future. So forget about CD's for now.

[poundwise]

One can argue that by locking in a CD rate one can guarantee that rate in case the rates go down...

Of course, this is always the logic behind CDs.

You may be right about the Fed but no one really knows.

I do not utilize CDs myself, I was only posting the note for those who may have been considering a new CD. I know that some practice CD laddering, etc.

[Ima saver]

This is the first time in my life I have ever had a CD. I am gettin 5.75 and 5.5 %