Before opening CD accounts are you shopping around to find the best CD rates available? It is important to properly research your investment and to know that you are buying the best investment that will provide you with generous returns. CD Laddering As you create an effective CD account strategy you need to focus on the CD rates. One investment strategy commonly used with CD accounts is known as CD laddering. With CD laddering you will have the returns on the CDs at different times. Careful … [Read more...]
How Can Melrose Credit Union Offer Such High CD Rates?
Melrose Credit Union is unique in several ways. Below are some of the key elements to it’s profitability and high rates. No Membership Requirements First it has an open charter which means US residents in any state can become members without the usual need of belonging to a certain group. Unusual Profitability Due to Taxi License Loans Second, Melrose Credit Union is unusually profitable because it makes loans to prospective New York cab drivers. Each cab in New York requires a … [Read more...]
How to Earn High Yields with Brokered CDs and Avoid Pitfalls
You could’ve bought a 12 month brokered Ally CD, on March 11, 2011 at ZionsDirect with a yield of 1.44%. That is 0.19% APY higher than buying the same term CD directly from Ally. Definition: A brokered CD is a CD that is purchased by a broker (usually with a large sum) and then split up into smaller CDs and then offered to investors at above-average-rates. You must have a broker that offers brokered CDs to purchase one. However, even though almost all brokered CDs are FDIC insured, they … [Read more...]
Valentine’s Day CD Offer
Thanks to Darryl (a RateCatcher.com reader), today we’ll review a Valentines Day CD special. From now until midnight on Valentine’s Day, you can score sweet gifts by opening a CD at GiftsforBanking.com In order to get the Valentine’s iPad/Camera Bundle, you need to open either a 2 year CD with a minimum of $50k or a 3 year CD with at least $25k. The bundle includes: Nikon Coolpix® L22 Camera (red) 32GB Apple® iPad f?l Brooklyn 2-in-1 iPad Backpack $25 … [Read more...]
Top CD Rates Compared by Yield/Term Ratio
It is typical for CDs to offer a higher yield for a longer term. The farther out the term goes, the less the bank is willing to boost the yield. Using RateCatcher’s CD rate comparison tool, I calculated the ratio of yield to term for the most common CD terms. The longest term CDs provided the worst ratios with the best 7 year CD coming in at 0.49. The sweet spot is at the 1 year and 2 year CDs with ratios of 1.48 and 1.13 respectively. The 6 month CD is somewhat irrelevant because the … [Read more...]
