CD Rates and links

[koihoshi]

US Bank CD Rates (https://fastapp.usbank.com/fastapp/en_us/requests/cdRates.jsp) (You will have to call them if you want the lower maturity terms such as 1, 2, 3, 6 or 12 months, etc...)

Washington Mutual CD's (http://www.wamu.com/personal/certificate_deposit/traditional_cd/default.asp)

Bank of America CDs (http://www.bankofamerica.com/state.cgi?section=generic&update=&cookiecheck=yes&context=&cd_bag=&sa_bag=&ch_bag=&destination=nba/deposits/checksave/index.cfm?template=save_overview)

Wells Fargo CDs (https://www.wellsfargo.com/savings_cds/rates)

Remember that some of the "CD checking" sites aren't entirely accurate, if you want the most accurate info go to the site of the bank itself or CALL!

I've found so far that US Bank has been very fair, so has scottrade (but you have to have an account with them to see the rates). But CDs change ALL the time in their rates.

[rlbzx2]

check out bankrate.com as well. They have a section on there where you can search for cd's within your state or out of state, choose your length of maturity, and has it all layed out nicely.

But you are def correct...contacting them is the safest bet!

[koihoshi]

Yeah i've tried bankrate.com and they aren't updated as often as they should and don't always contain all the available cds, hence making this thread. :) but every piece of information is appreciated and awesome.

[SoCalZX2]

My only problem with CD's is they're low rate of return and penalties if you need to pull your money out for some reason...

The rates don't even keep up with the national inflation, so you might be better off parking the money in a money market account which will usually average the same rate AND you're not usually going to have any fees associated with getting to your money if you need to.

Not a great investment IMHO.

[koihoshi]

That depends on how much money you're throwing into them, of course. For small investments it makes little sense, it's little return. However, large sums of money is a different story, and if you plan on sticking your money in a savings account, a CD will gain far more interest than if it just sat in an account making a tenth of a percent of return, at least your money will be doing /something/.

[rlbzx2]

That's why if you are going to invest with cd's....to build a cd ladder.

[SoCalZX2]

But why put a large sum of money in a low return investment?

[koihoshi]

poopy ass post, apologies.

Rawr look at my anger!

[SoCalZX2]

Wow... I wasn't making a huge deal out of it... I was asking a legitimate question. Thanks for biting my ass.

[koihoshi]

Sorry man, I guess I misunderstood you. I thought you were getting all angry at me for posting it or something, my apologies. It's difficult to tell what people mean sometimes on the boards.

Come over and i'll give you a hug. I still love you.

My point was simply that some people aren't sure what to do with their money, and you can usually do anything from 1 month to 12 YEARS in a cd. So for the people who either aren't sure, or are afraid of risk, getting $6-100 a month depending on how much you invested is better than a couple pennies that the bank gives you, like i said, in what seems a tenth of the interest of a savings account.

Again, my apologies.

[rlbzx2]

:ROFL: ....yeah...I was a little taken back by what just happened in the last 3 posts...but oh well, all is good. Group hug everyone!

[koihoshi]

I tend to lash out when people tend to post things i take the wrong way, it's part of who i am and my downfall of being so outspoken. That's my bad for misunderstanding what he meant. Socal you have a PM, sorry bro.

[SoCalZX2]

Sorry man, I guess I misunderstood you. I thought you were getting all angry at me for posting it or something, my apologies. It's difficult to tell what people mean sometimes on the boards.

Come over and i'll give you a hug. I still love you.

My point was simply that some people aren't sure what to do with their money, and you can usually do anything from 1 month to 12 YEARS in a cd. So for the people who either aren't sure, or are afraid of risk, getting $6-100 a month depending on how much you invested is better than a couple pennies that the bank gives you, like i said, in what seems a tenth of the interest of a savings account.

Again, my apologies.

No worries lol I was just like wtf?

You're right though, standard savings accounts even at most CU's blow.

[rlbzx2]

I feel the love again....

[koihoshi]

Yeah I think the last time I left a large sum of money in savings I made a whole $.25

When I was a kid I could buy a shitload of candy, but that'll get you..... nothing now...

[JonsZX2SR]

But why put a large sum of money in a low return investment?

Sometimes you need to park your money somewhere safe until market conditions improve.

A 2% yield might not seem much, until you compare it with leaving the money in volatile stocks and seeing -20% yield over the same time period.

[koihoshi]

Well said, my point exactly, except without the lash out part haha.

[rlbzx2]

Why don't we put our heads together and start our own investment company...we seem to be the only one's reading this so far ;)

Edit: Only ones commenting I should say...there have been a some views! :)

[koihoshi]

That's ok, i'll keep doing it my own way :P i don't like relying on others with my money haha. However, the info is here for those interested, if they don't want to use it that's their loss.

[SoCalZX2]

I agree, short-term parking stocks and mutual funds are a horrible option... Those are true long-term type investments.

I just think that CD's give the same or lower rates than money market accounts and with a money market account you can get to your money without fees.

I would never suggest anyone put any ammount of money into stocks or mutual funds for a short-term (less than 5 years) savings plan... thats nutty.

[CraZx2ing]

I see use for all of these products.

Savings Account:
For someone that just wants to save a little bit, say $50/wk just to save it, they could get a standard savings account. There are usually programs that you can auto transfer a little bit each paycheck etc. They also typically give you a free checking account and have lower minimum balances to maintain.

CDs:
Safe bets. You put your money in and after the set amount of time you get your money back. I would use this as money you don't want to risk taking a loss on and probably will not need to touch or have readily available at a moments notice. Its a safe and easy way to make a little bit of cash.

Money Market:
Usually these have higher minimums to maintain. They give you liquid access and usually offer a couple percent or more. These usually have limits on how many transactions can take place every month.

EXAMPLES:
I would use the savings as a smaller savings plan. Maybe you want to save up $500 for a PS3 and will deposit $20 a paycheck to be able to use it. This would be the account for you.

I would use the CD if say, I had $20,000 saved up as a down payment on a house that I wanted to buy a year from now or more. I don't want to risk losing the money because it's a lot and I also don't want to have easy access to it because I might tap into it. The CD locks it up, but keeps it available for an emergency while still earning me a few bucks.

I would use the money market as a savings account that I would like to have immediate access to. Maybe I saved up $10,000 to use on remodeling my house. I would like to be able to transfer $2,000 at a time or something as I start the remodeling process. This way I wouldn't have to worry about having my money locked up.

In summary, all three means of saving are useful to someone on some level. There is a reason that all three of these products are available for use. One just needs to think about what they want to do with there money and what is comfortable for them. As always the greater the risk, the greater the reward.

[koihoshi]

CrazyZx2ing, great post! Great examples. Well said :)

[CraZx2ing]

come on man, my name is 1 post above yours...

Cra - Zx2 - ing.

lol :). Thanks, i used to work at a bank and was a top seller there. Everyone needs something, and i could find it, and make them understand why they needed it :).

[SoCalZX2]

Not a bad explanation. I hope no one is taking my comments poorly. I'm not saying don't use them. I do agree they're better then most savings accounts... and I do believe that everyone has their own limits as to what they'll invest in.

Everyone just needs all the information, so I was trying to pose another option to CD's that offer the same limited risk with a higher yield without the fees. But Craz does bring up a a point that liquidity takes responsibility to not touch the money in case of a true need or planned expense.

[koihoshi]

come on man, my name is 1 post above yours...

Cra - Zx2 - ing.

lol :). Thanks, i used to work at a bank and was a top seller there. Everyone needs something, and i could find it, and make them understand why they needed it :).

i'm not dyslexic i swear. slysdexic? narf.

[LunchBoxZX2]

IMO, a CD should be your second to last option for a place to park money. A savings account should be your absolute last resort. If you look around, there are PLENTY of money markets and money market funds that you can buy into that will give you 100% liquidity in 1 working day or less.

If you need a short-term spot to park some cash, call a major firm that has access to all of the good stuff, and see what they have. There may be a minimum purchase for higher-yielding money market funds, but there is almost never a fee to open a standard account and the breadth of product is something you don't always have at smaller firms.

Then again it really depends on how much money you're talking about as well. Personally, I will never put any of my own money into a CD. Their rates change daily as anything else does, but you're locked into it for a pre-determined period of time. There are better options out there, even if you don't see them yourself... I'm looking at some right now :-)

I realize there's "different strokes for different folks" and everyone is different. The main thing is to do what you're comfortable with. If a CD makes you comfortable, use it. If you want to shop around for better options, obviously that's up to you.

Good post, though, Derek. Most people don't even have any idea what their savings accounts are paying.

[random_hero]

lol....narf.

[Cherokee]

I think it is best to check local credit unions. We have Advantis Credit Union here and they are now paying 5.5% on checking up to $30k! It was 6.25% for over a year. That's better than any CDs I've seen AND, unlike a CD you can do anything with your money at any time.

[99fordzx2]

I never knew what a CD was until I started working at a bank, we always get people coming in asking about CD rates. This thread has some good info on he subject. I could probably just ask about it at work tommorrow, but what the heck Ill ask you guys. What do you guys concider the threshold amount for a CD. What Im asking is, what do you guys think the lowest amount/time in the CD, is worth your time. For example, would it be worth it to put say, $800 in for a month or two, as opposed to leaving it in a savings account. Depending on how much is in there, this could be a good way to save for school, or goodies for the Z. lol



-D

[inis]

Figured I'd give my contribution to this thread.

We have a 5000.00 cd with our bank, it is a 6.0% apr intrest. We have this on top of our other investments (401k for the most part) . Eventaully I'll get into Roth accounts, but for not this is how we'll have it.

With the cd, if something was to happen with either of our jobs... we could have it the next day requested. We started the cd off with around 4k in it 2 yrs ago. Its now around 5000.00 . Its been nearly a year since I looked at it last. Its in an account we dont use much.

[CraZx2ing]

I never knew what a CD was until I started working at a bank, we always get people coming in asking about CD rates. This thread has some good info on he subject. I could probably just ask about it at work tommorrow, but what the heck Ill ask you guys. What do you guys concider the threshold amount for a CD. What Im asking is, what do you guys think the lowest amount/time in the CD, is worth your time. For example, would it be worth it to put say, $800 in for a month or two, as opposed to leaving it in a savings account. Depending on how much is in there, this could be a good way to save for school, or goodies for the Z. lol



-D


It will vary for every single person. 4% for 2 months is better than .25% for 2 months. That is a no brainer. How much and how long would you want to tie your money up for is the better question. What works... for you?

[koihoshi]

I never knew what a CD was until I started working at a bank, we always get people coming in asking about CD rates. This thread has some good info on he subject. I could probably just ask about it at work tommorrow, but what the heck Ill ask you guys. What do you guys concider the threshold amount for a CD. What Im asking is, what do you guys think the lowest amount/time in the CD, is worth your time. For example, would it be worth it to put say, $800 in for a month or two, as opposed to leaving it in a savings account. Depending on how much is in there, this could be a good way to save for school, or goodies for the Z. lol



-D

Most banks don't seem to allow anything under $500. But it depends on how long you're willing to hold up your money. If you don't plan on investing it in other places or putting it in money market or stocks and planned on it sitting in savings it may be better off in a cd IF the rate of return is higher.