I’m thinking about getting a new 12 to 18-month CD account. I realized that the bank rates are very low these days. For example, the Bank of America is offering the rates as low as 1% for 12-mo and the 18-mo opt-up is 1.24%. I know that other small banks are offering higher rates but I’m not so sure about their reputation. I don’t want to put my money on another Washington Mutual. Should I stay with the Bank of America to simplify the headache? This is the main bank where I have all my savings. Do you think their rates are too low to consider? How negligible is the 0.2% difference? Your opinion is greatly appreciated.
oasys Wrote: ------------------------------------------------------- > I’m thinking about getting a new 12 to 18-month CD > account. > > I realized that the bank rates are very low these > days. > For example, the Bank of America is offering the > rates as low as 1% for 12-mo and the 18-mo opt-up > is 1.24%. > > I know that other small banks are offering higher > rates but I’m not so sure about their reputation. > I don’t want to put my money on another Washington > Mutual. > > Should I stay with the Bank of America to simplify > the headache? This is the main bank where I have > all my savings. > Do you think their rates are too low to consider? > How negligible is the 0.2% difference? > Your opinion is greatly appreciated. Unless you’re plowing in more than 250k/cd why would you worry about a smaller bank as long as it’s FDIC insured rock and roll baby. If you ARE putting in more than 250k just break it apart so you come in below the limit per CD.
What AM said - banks on the brink pay the best rates. I got 5% from Indymac weeks before it was taken over - market rates were 3.25-3.50. Just shop your rate and go with any FDIC institution with the highest rate (adjusted for the hassle you might encounter working with them, if any).
You can get better rates through non-USD denominated CDs with Everbank. Just have to decide if you want to take on the currency risk (unless you hedge it, of course).