Archive for the ‘Rates’ Category
ING Direct Increases CD Rates
ING Direct has updated and increased their CD rates:
| Term | Rate | Effective Date |
| 6 Month | 3.50% | 08/12/08 |
| 9 Month | 3.60% | 08/12/08 |
| 12 Month | 3.70% | 08/12/08 |
| 18 Month | 3.75% | 08/12/08 |
| 24 Month | 3.80% | 08/12/08 |
| 30 Month | 3.85% | 08/12/08 |
| 36 Month | 3.90% | 08/12/08 |
| 48 Month | 3.95% | 08/12/08 |
| 60 Month | 4.00% | 06/11/08 |
Get your CDs! Piping hot CDs!
Are CD’s Worth It?
Countrywide is currently offering a 7 month, 4.1% APY Certificate of Deposit, is that worth investing in?
If you have an account at Countrywide and you don’t have to move any assets to take advantage, I think that a 7 month Certificate of Deposit offering 4.1% APY is not a bad idea. You lose very little by taking advantage of it. Even if rates do spike up within the next 7 months (the highest rate at a brand name bank is 3.75% at Washington Mutual) such that they exceed 4.1% APY (which is unlikely), you are only locked in for 7 months.
Otherwise, I’d wait.
Personally, given a choice between a 3.75% APY and flexibility or a 4.1% APY without flexibility, I’ll take the 3.75% APY every time. I prefer the flexibility but the main point here is that the difference isn’t significant enough to warrant the effort. There are also financial considerations as well because you don’t earn interest on funds that are “in transit,” which is really just the banks playing the float because money never actually moves from one bank to another.
If you have to move new funds over to Countrywide, I wouldn’t do it. If you have funds there, by all means snatch up the opportunity.
HSBC Direct Extends Promotion
The current rate for HSBC Direct is 2.25% APY.
The 3.50% APY offer for HSBC Direct’s online savings account is a “promotional” offer that was extended from August 15th to September 15th. This is good news for those who pushed their funds to the higher offer. There’s still no hint as to where the rates will go after the promotion ends but with so many other banks increasing their rates, there’s a good chance the 3.50% APY will stick.
My strategy has always been to keep several of these accounts open and shift funds from my checking account into the highest rate when they are available. I don’t “rate chase” because the interest lost in the transfer can easily wipe away any additional interest earnings, but it’s good to always push to the highest bar available.