1.01%
1.00%
1.00%
iGObanking.com
has one of the highest current online savings interest rates at 3.08% APY. This is a great place to invest if you want to make some money in interest while still having relatively instant access to your funds. It’s very easy to open an account online and there is no minimum deposit required to open a new savings account (okay I lied, it’s a $1 minimum).
iGObanking.com is a member of the FDIC. Toll Free number: 1-888-432-5890
I’ve created a little Flex app that calculates the amount of interest you can make given a certain certificate of deposit term length in months, APR or APY, and amount of initial deposit. Check it out: CD Calculator
Many banks have opted to have your certificate of deposit renew automatically upon maturity. Some banks, such as ING Direct, will even send you a notice in the mail to give you fair warning that your C.D. is maturing and that it is set to auto renew into the same term deposit. If you don’t want to reinvest your money in the same length certificate of deposit then make sure to log in to your online account and take the necessary steps to stop it.
Some banks may have a grace period (it can be a few days to as many as 10 days) to get your cash out of the new certificate of deposit. Make sure you check with your financial investment institution.
CDARS, the Certificate of Deposit Account Registry Service, is a product that may be offered at a local bank. It is one way to reap the benefits of FDIC insurance with a large deposit. A bank that offers CDARS will give you one interest rate while they spread your money across many other financial institutions to give you full FDIC coverage on your investment. For more information and for a list of participating banks go to the CDARS website.
If you need instant access to your money then a certificate of deposit or online savings account may not be right for you. However you can still earn interest on money that is sitting in your checking account by considering one of the following bank investment products.
Electric Orange (from INGDirect) and Thunderbolt Checking (from UmbrellaBank) are high yield interest bearing checking accounts. Both banks are online banks (Umbrella bank is actually the online division of New South Federal Savings Bank) so electronic transactions are utilized.
Here’s a quick comparison:
| Electric Orange from ING Direct | Thunderbolt Checking Basic Interest Checking from UmbrellaBank | notes | |
|---|---|---|---|
| Initial Minimum Deposit | $1 | $500 | |
| Paper Checks | no | yes | unlimited check writing from UmbrellaBank |
| Send Paper Checks | yes | no | ING Direct lets you send paper checks to people/businesses online |
| Send Electronic Checks | yes | yes | online payment to businesses/online bill pay |
| ATM/Debit Card | yes | yes | instant access to your money through ATMs |
| Monthly Fees | no | maybe | $4.50 monthly fee is waived if you have 1 of the following:
|
Electric Orange users can send a paper check overnight to arrive by the next business day for a fee of $15 but you must get your request in by 11AM Eastern Time.
Interest Rates
Here’s where the two online checking accounts are very different.
| Electric Orange from ING Direct | |
|---|---|
| Account Balance | APY Annual Percentage Yield |
| $0 – $49,999.99 | 0.50% |
| $50,000.00 – $99,999.99 | 2.60% |
| $100,000.00 or more | 2.80% |
| Thunderbolt Checking Basic Interest Checking from UmbrellaBank | |
|---|---|
| Account Balance | APY Annual Percentage Yield |
| $0-$499.99 | 0.15% |
| $500-$1,999.99 | 2.00% |
| $2,000.00 or over | 2.00% |
Based on today’s online checking account rates it makes sense to go with UmbrellaBank’s basic interest checking Thunderbolt Checking Account only if you have less than $2000 AND meet the requirements of getting the monthly fee waived. It’s better to go with Electric Orange from ING Direct if you have $50000+ to invest OR if you would have to pay the $4.50 monthly fee by going with Umbrella Bank.
Discover Bank (the same bank behind DiscoverCard) is offering the some of the highest current C.D. rates around. Here’s a look at their current certificate of deposit rates:
| Term | C.D. Interest Rate | APY |
|---|---|---|
| 3 months | 1.25% | 1.25% |
| 6 months | 1.74% | 1.75% |
| 9 months | 1.99% | 2.00% |
| 1 year | 2.47% | 2.50% |
| 1½ years | 2.47% | 2.50% |
| 2 years | 2.96% | 3.00% |
| 2½ years | 3.01% | 3.05% |
| 3 years | 3.30% | 3.35% |
| 4 years | 3.49% | 3.55% |
| 5 years | 3.73% | 3.80% |
| 7 years | 3.93% | 4.00% |
| 10 years | 3.93% | 4.00% |
There is a minimum deposit requirement of $2500 to open a new CD account and they are FDIC Insured.
Investing in CDs is a safe investment when an FDIC (Federal Deposit Insurance Corporation) bank is chosen for your electronic banking. The fed raised the limits of FDIC insurance to $250,000 through the end of 2009. If a financial institution that you are banking with fails, the FDIC insurance will protect your money up to the limit of coverage.
Investing in the stock market can definitely be risky because of all the recent volatility in the financial markets in America. A certificate of deposit by comparison incurs zero risk. The best way to manage risk is to diversify your investments. If you “put all your eggs in one basket” then you run the risk of your single investment failing. A combination of CDs and online savings accounts will net you a safe investment but you may not yield the highest returns simply because they are considered no risk investment products.
Search for CD rates and start investing your money today.
ETRADE Financial is offering high savings account interest rates at 3.01% APY. This is actually higher than certificate of deposit rates at many other financial institutions. E trade’s CDs are only at 1.70% APY at the highest for their 5 year CD! Current online savings account interest rates are so much better than other bank CD rates that it makes more sense to open a saving account at Etrade instead of a CD. This is the best deal in electronic banking right now.
Etrade Financial Bank is FDIC Insured and there are no minimums or account fees.
GMAC Bank has 12 month bank CDs (1 yr cd rate) at 3.75% APY making their certificate of deposit rates highest right now. Countrywide bank by comparison has their 1 year CDs at only 2.10% Annual percentage yield. INGdirect’s 12 month CDs are at 2.75% APY.
ING Direct is giving away 25 dollars to those that open a new Orange Savings Account or Electric Orange account. Your initial deposit must be at least $250. You can only receive this offer via an email invite so leave me a comment (I won’t publish your email address) and I’ll send you an invite while they last.
I’ve had an INGDirect online savings account and CD accounts for over 3 years. Their website is easy to navigate and it’s very easy to open additional accounts and new Certificates of Deposit. You have the ability to transfer funds immediately as well as schedule future transfers and set up automatic recurring deposits to your bank accounts. You can also cancel accidental transfers within a certain amount of time (unlike ELoan when I banked with them last about a year ago.)
Washington Mutual is giving away 75 bucks for signing up for their free checking account. I’ve had a free checking account with WaMu for over 10 years and haven’t had a problem with them. Here are the details:
- Open your account by January 24, 2009
- One offer per household
- $100 minimum opening balance
- 75 dollar bonus is deposited within 12 weeks of account opening
Your money will be safe with WaMu since they were recently acquired by Chase. A benefit of this merger is that you’ll be able to access your money at more places since you can use WaMu and Chase ATMs.
Promo code: 0028-ADBM-5675
GMAC Bank has the best certificate of deposit rates for right now for CDs with a life of 3 months to 3 years. They only require $500 minimum to open a new CD account and they are FDIC insured.
Here is a list of GMAC Bank’s current CD rates:
| Term | Rate | APY |
|---|---|---|
| 3 months | 3.20% | 3.25% |
| 6 months | 3.68% | 3.75% |
| 9 months | 3.73% | 3.80% |
| 12 months | 4.16% | 4.25% |
| 18 months | 4.17% | 4.26% |
| 2 years | 4.35% | 4.45% |
| 3 years | 4.40% | 4.50% |
| 4 years | 4.40% | 4.50% |
| 5 years | 4.78% | 4.90% |
Better CD rates can be found at Eloan for 4 year, 5 year, and 6 year CDs. Eloan requires $10,000 to open a new certificate of deposit account.
Don’t get stuck with a low CD rate from another bank and invest your money in the best rates that you can find to maximize your return on investment.
Eloan has the best CD rates for 6 month CDs at 4.00% APY. Eloan has a minimum deposit requirement of $10,000. Their high CD rates also the same as Eloan Jumbo CD rates (Certificates of deposit that are $100,000 or greater).
Comparison of other banks 6 month CD rates:
Countrywide: 3.00% APY
Etrade: 2.25% APY
Eloan’s 12 month CD rate (1 year CD rate) is also at a very competitive 4.36% APY.
The FDIC has raised their insurance limits on deposit accounts from $100,000 to $250,000. This means joint accounts can now be covered up to $500,000 in the event of a bank failure.
This should help build some confidence in our nation’s banks and possibly encourage people to save some money. Here’s the breakdown from FDIC.gov:
Single Accounts (owned by one person): $250,000 per owner
Joint Accounts (two or more persons): $250,000 per co-owner
IRAs and certain other retirement accounts: $250,000 per owner
Trust Accounts: $250,000 per owner per beneficiary subject to specific limitations and requirements
Corporation, Partnership and Unincorporated Association Accounts: $250,000 per corporation, partnership or unincorporated association
Employee Benefit Plan Accounts: $250,000 for the non-contingent, ascertainable interest of each participant
Government Accounts: $250,000 per official custodian