Best RatesBanking & Finance InformationBanking CommentaryCertificate of Deposit (CD) Tips for Investors Certificate of Deposit Accounts FDIC Insured Up To $50 Million FDIC Federal Reserve Consumer Help Find a Credit Union in Your Area Homes For Sale by the U.S. Government House Price Index Is Your Deposit FDIC Insured? Your Credit Reporting Rights Banking ArticlesCapital One Bank Online Savings AccountDime Direct 6 Month Certificate of Deposit RateNationwide Bank Money Market AccountLiberty Bank Online Checking AccountHow to Protect Against Online Identity TheftBrokerage Certificate of DepositsGMAC 12 Month CD RateE-Loan 1 year CD Rate of 4.36% APY with a $25 BonusDollar Savings Direct Online Savings AccountING Direct CD RatesSovereign Bank CD RatesMaximizing Your FDIC Insurance CoverageFDIC Deposit Insurance Coverage Limits RaisedVenture Bank Direct Online Savings AccountCostco/Capital One Bank 18 months CD RateCNB Bank Direct 4.00% Savings AccountNational City Bank $150 Checking OfferE-Loan 5 year CD RateInvesting Terms$75.00 from Bank of AmericaChase Bank $100 Checking OfferValley National Bank Promo CD RatesFHFA House Price Index Declines 0.6 % from July to AugustBank of America 7 Month CD RateBalance BillingE-Loan High Yield Savings AccountCorus Bank 6 Month CD RateBank of America 3 Month CD RateGet $50 from TradeKingFDIC List of Troubled Banks and the Texas RatioSearch and Compare Credit CardsCentral Banks Cut Interest Rates by 1/2 percent.HSBC 6 Month CD RateCitibank 6 Month CD RateThe Credit Crunch and YouCitigroup Inc. to Acquire WachoviaAmTrust Direct 6 Month CD RateAmTrust Direct Online Savings AccountWachovia Bank 7 Month CD RateWaMu Shut Down!E Trade Bank $25 Promotional Savings Account OfferWaMu Online Savings AccountGet $25 from ING DirectBest CD RatesGet $100 When Opening a CitiBank Checking AccountIs Your Money Market Fund Safe?E-Loan 6 Month CD 4.02% APY6.10% APY Checking AccountIndyMac Federal Bank Money Market Rate 3.75% APYIndyMac Federal Bank 7 month CD Rate 4.15% APYFree Checking $200 Bonus OfferGet Several Home Loan Quotes in MinutesEarn up to $250 with WTDirect’s Sign-On BonusWashington Mutual 5.0% APY 13 Month CDFree Credit ScoreNewportFed 5.51% APR Checking AccountGet $125 When Opening a Chase Checking AccountCD Rate CalculatorsBank Of Internet High Interest Checking Account 3.40% APYCertificate of Deposit Accounts FDIC Insured up to $50 Million |
The minimum opening deposit for the CD account is $500 and the maximum deposit is $100,000. Funds deposited in the account must be “new money” and can not be transferred from an existing Dime Account. Dime Direct is part of Dime Savings Bank of Williamsburgh ( Brooklyn ) New York which was establish in 1864. The Prime Dime Checking Account can be opened with a minimum deposit of $1.00. There is a $15.00 monthly fee if your checking account balance falls below $5,000. To qualify for the CD rate you must also do the following transactions in the checking account. Have a monthly recurring direct deposit of a payroll check, pension check or government benefit or use the online bill payment service at least once per month.
CD brokers usually purchase CDs in large denominations and resell them to customers in smaller amounts. Just like traditional certificate of deposits purchased from banks, brokerage certificate of deposits are FDIC insured for up to $250,000 for individual accounts and $500,000 for joint accounts. The difference between traditional bank CDs and brokerage CDs is the brokerage CDs are tradable like stocks or bonds. Why would one want to trade a CD? To access their funds without paying an early withdrawal penalty like you would with bank CDs. A brokerage CD will return an investor’s principal at maturity, its value if sold prior to maturity will fluctuate based on size, time remaining before maturity and the level of interest rates. If you sell before maturity your broker will request bids and contact you with the highest bid for you CD. You will also receive any accrued interest up to the sale date. Another benefit is a brokerage CD can be transferred from one brokerage firm to another, which allows the owner to consolidate assets at one firm. Bloomberg recently reported CD rates are going up.
The bonus is posted into the account within 90 days of opening the account and you must keep the account until the certificate of deposit matures. The minimum opening deposit is $10,000 and the promo is valid for one new 1 year CD account for each new customer. E-Loan 1 Year Promotional CD Application
Requirements to open a savings account
If you need help opening an account call customer service at 1-866-395-8693
You will need the following to open a certificate of deposit account with Sovereign Bank.
You can open multiple accounts to raise your overall limit. We have two examples on raising the insured limit on deposit accounts. Maximizing Your FDIC Insurance Coverage A husband and wife can have deposit accounts totaling $1,500,000 insured by the FDIC, with the following account ownership strategy. Example 1: Husband and Wife
Example 2: Husband and Wife with Child
A CD account can be opened online by using the link below or by calling 1-866-850-3919. Captial One/Costco 18 Month CD Applicaiton
What is principal? Principal is the amount of money originally invested in an account. It includes any interest earned which has been posted to the account. Principal is the money that earns interest. What is an Annual Percentage Rate (APR)? The APR is the annual rate of interest without taking into account the compounding of interest. What is an Annual Percentage Yield (APY)? The APY is the annualized rate of return on your investment including compounding interest. What is a Certificate of Deposit (CD)? A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing funds on demand. What is a Jumbo Certificate of Deposit (CD)? A Jumbo certificate of deposit usually has a minimum principal deposit of $100,000. What is an Early Withdrawal Penalty? Since certificate of deposits are timed deposits withdrawing monies early will incur a penalty, forfeiting some or all of the interest earned. What is a Certificate of Deposit term? The term of a certificate of deposit (CD) is the length of time your money has to be deposited to accrue the interest promised by the bank. What is Compounding Interest? Compounding refers to earning interest on previous interest earned, this is why the annual percentage yield (APY) is higher then the annual percentage rate (APR). Another good source for information on investing terms is Investopedia.com
Valley National Bank of Wayne New Jersery is offering 4.00% APY on a 9 month CD, 1 year CD, 18 month CD and 2 year CD. These rates are as of October 23, 2008. Valley National Bank has been around for over 80 years. Certificate of Deposit overview:
Certificate of Deposit Application process: To open a CD account with Valley National you can fill out the application online and bring it into a branch office. If you are an existing VNB customer you can mail the form in. For more information go to www.valleynationalbank.com or call 1-800-522-4100
You will need the following information to open a CD account.
Be sure to use promotional offer code HYCD Bank of America 7 month CD Application
The current yield on a 3 month CD is 4.39% APY. These rates are only available to National Education Association (NEA) members. The minimum opening balance is $1000. Additional CD rates and terms offered by Bank of America NEA.
To qualify for this offer, new accounts must be opened and funded with $2,500 or more. Account funding must occur within 30 days of account opening, and one trade must be executed within 180 days of account opening. One offer per household. A minimum balance of $2,500 is required in the account (minus any trading losses) for the first six months or the $50 credit may be surrendered. TradeKing only charges $4.95 per stock trade and .65 cents per option contract or market or limit orders.
The Texas Ratio is one measure that might offer a clue. The ratio was developed by RBC Capital Markets analyst Gerard Cassidy in the 1980’s to forecast which banks could fail during the 1980’s real estate bubble, dejivo anyone? The ratio is devised by comparing a bank’s troubled loans to it’s capital. If the amount of bad loans equals or exceeds it’s capital, a ratio of 100% or higher, the bank might not have enough capital to cover it’s losses related to the bad loans on it’s books. If a bank’s Texas ratio is 100% or higher it doesn’t necessary mean the bank will fail, a bank can raise more capital to cover it’s losses, though not an easy thing to do these days during the credit crunch. Individual deposits are now covered by FDIC insurance up to $250,000 so most depositors don’t have much to worry about a bank failing but if you have a business line of credit or are planning to obtain a mortgage from a bank that is on the list you should start thinking about banking elsewhere. Here is a list of unofficial troubled banks compiled from the FDIC’s Statistics on Depository Institutions at http://www.geocities.com/tubeguy@rogers.com/troubledbanks.htm To compile your own Texas Ratio list using the FDIC’s statistics, visit http://www2.fdic.gov/sdi/main.asp and use the following equation, Non-performing Assets and bank real estate owned (REO) divided by Equity and Loss Reserves. ABC News recently reported on the Texas Ratio just after IndyMac Bank failed.
The Federal funds rate is now 1.5%. Rates on deposits which have been going up might start to head south again. The average 1 year CD rate currently is 3.70% and the average 5 year CD rate is 4.13% as reported by bankrate.com.
To qualify for the 4.00% APY you must deposit “new money”, meaning money not already deposited with HSBC Bank. After you complete the application online ( takes 10 to 15 minutes ) you will receive an application status via email. Your opening deposit can be made by transferring funds from any HSBC or other financial institution checking account or savings account. You can also mail a check made payable to HSBC Bank USA, National Association. You will need the following information to open an account. You must be at least 18 years of age and have a U.S. address to apply for a deposit account online. If you do not have a U.S. address, please call 1-800-975-HSBC (1-800-975-4722) Option 2. The deposit application requires the following information:
The minimum opening balance for the CD account is $500. You can choose to have Interest paid monthly or at maturity. The early withdrawal penalty is 30 days of interest, 90 days of interest if you reside in California or Nevada. Be sure to use promotional offer code CKC6.
The rate banks charge each other for loans (the LIBOR - the London Interbank Offered Rate) has shot up overnight. For example, the 3 month LIBOR is at 4.05%, up from 3.88% and the rate banks charge each other for overnight loans is at 6.88%. The Federal Reserve has been doing its part to ease the crunch by pumping money into the markets to provide liquidity but banks just aren’t lending because they are scared to lend. All types of lenders had already been raising the bar for borrowers and were only lending to the best customers. With the uncertainty of the bailout they became even less willing to lend their money, further crimping the crunch. Banks are even cutting back on credit cards and lowering the credit limit on borrowers, further squeezing borrowers. American Express has lowered the credit limit on about half its credit card holders. Amex is also offering fewer credit cards in areas where housing prices have fallen the most, which includes California, the southwest and Florida. How does this affect you? Need a mortgage or home equity line of credit?
Worried about being laid off? Many companies fund their day to day operations and grow using short term credit. They accomplish this by selling short-term and long-term bonds in the credit markets. Right now, the short-term debt markets are at a standstill and the long-term debt markets are a bit more functional, but rates are high. Companies with high levels of debt will be the first ones in trouble, but even companies with low levels of debt might have to resort to layoffs if they can’t get access to credit and the economy stalls. What can you do to survive the pending credit crunch? Start a budget and fund an emergency fund (if you don’t already have one).
Another way to survive this uncertain economic period is to make sure your bank deposits are within the FDIC insurance limits. The Certificate of Deposit Account Registry Service (cdars.com) allows you to deposit up to $50 million in Certificate of Deposit accounts. You earn the same CD rate across all banks your money is deposited in. Here is a MarketWatch.com video on spending less and saving more. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||