Highest Interest Rates

Darby Direct Step Up CD

bankingblogs — Fri, 28 Aug 2009 23:51:12 +0000

Darby Direct has added a feature to its 36-month Step-Up CD that allows the customer to make a penalty-free early withdrawal on each anniversary date. The customer will be granted a 10-day grace period during which any or all of the funds may be withdrawn without penalty.

The Step-Up CD was already a hot deal with an average APY of about 4%. The rate grows from 3%, 4% to 5% for the fist, second and third year. Also, the CD allows unlimited deposits of at least $500. Now with this penalty-free early withdrawal feature, it’s especially hot. If you take the early withdrawal after the first year, the CD essentially becomes a 3% 1-year CD. If you take the early withdrawal after the second year, it becomes a 3.5% 2-year CD.

Thanks to the readers who mentioned this in the comments and forwarded the notice they received from the bank. Darby Direct has also updated its 36-month CD disclosure. This new feature is described at the end of the disclosure.

Refer to my August 15th post for more details about this CD offer and Darby Direct.

Unfortanetly, the offer is only available to existing Darby Direct customers and Georgia residents.

Another downside is that Darby Bank & Trust Co. (the owner of Darby Direct) isn’t in the best financial shape: 1 star (lowest) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both ratings are based on 3/31/09 financial data. Darby Bank & Trust Co. is a FDIC member (FDIC Certificate # 14580) so if you keep under the FDIC limit, there is no risk to your principal and accrued interest. The only risk would be if the bank fails during the CD term, the CD could be terminated early or the CD rate could be reduced. If interest rates go up in the next year or two, this no longer becomes a risk.

Patelco Credit Union (CA) Certificates

bankingblogs — Thu, 24 Jul 2008 22:51:14 +0000

Patelco Credit Union is offering 4.39% apy on their 60 month share certificates. They are also offering 4.28% apy on share certificates with maturities ranging from 48 to 59 months. These certificates are available as regular or IRA share certificates. The minimum deposit requirement for these accounts is $500.

Field of membership in Patelco Credit Union is open to a wide variety of groups and organizations. Anyone who isn’t otherwise eligible for membership can become eligible by joining the California Association for Older Americans which is open to anyone regardless of age or geographic location. Simply indicate California Association for Older Americans on your application for Patelco credit union membership..

HSBC Direct High Yield Savings

bankingblogs — Sat, 14 Jun 2008 10:06:48 +0000

HSBC Direct recently raised the rate on their online savings account to 3.50%, which is higher than both E*Trade (3.15%) and Wamu (3.30%). This new rate applies to both new and returning customers. Here’s some of the details:

No minimums or fees
$1 deposit
Rate guaranteed through 8/15/2008
ATM cards available
Unlimited links to external accounts

Recent Savings/Money Market Rate Cuts

bankingblogs — Mon, 07 Apr 2008 02:55:51 +0000

With Fed continually cutting the prime interest rate, money market and savings rates have been dropping rapidly.

Here is a summary of the most recent rate cuts:

WaMu Savings/Checkings: 3.30% APY (was 4.00%)
WTDirect Savings: 3.31% APY (was 3.55%)
ETRADE Complete Savings: 3.01% APY (was 3.45%)
Zions Deseret MMA: 3.05% APY $1K-$50K, 3.46% APY $50K+ (was 3.41%/3.51%)
Citibank Ultimate Money: 2.80% APY (was 3.20%)
Charles Schwab Checking: 2.26% APY (was 3.01%)

With today’s economic woes, it doesn’t look like the continual rate drops will stop anytime soon.

Countrywide Bank CD Rates

bankingblogs — Thu, 20 Mar 2008 00:31:38 +0000

After yesterday’s big Fed rate cut, it’s a surprise to see Countrywide Bank increase the rate on its 12-month Internet CD from 3.50% to 4.20% APY. The 6-month CD rate remains unchanged at 4.05% APY.

This 12-month CD also seems to be available at Countrywide Financial Centers. Here are some of the details regarding this certificate of deposit:

91 days of interest early withdrawal penalty for terms under 12 months.
180 days of interest early withdrawal penalty for terms of 12 to 60 months.
Grace period at maturity when you can close without penalty is 10 calendar days
No hard credit inquiries for opening CDs or savings accounts
CD funding options: mail a check, wire transfer, or drop off check at a CW financial center. ACH funding for a CD is not an option.

Bank of America Interest Rates

bankingblogs — Thu, 06 Mar 2008 01:44:55 +0000

Bank of America has dropped their rates along with the rest of the banking industry. Big banks like Bank of America have historically offered lower rates, and their current rates have not broken this trend. Bank of America’s high yield CD has a yield of 3.06% APY, with a 4 month maturity term. Minimum balance on this CD is $5,000.

Their Risk Free CD offers an even lower rate of 2.75% APY and a 9 month term. However, this CD allows you to withdraw funds prior to maturity without a penalty, which makes it similar to a high yield savings account.

The Bank of America regular savings account yields a pitiful .20% APY compared to Washington Mutual’s 4.00% APY or E*Trade Financial’s 4.10% APY.