Archives for February 2009

Broadway Federal Bank is offering a promotional online savings account that currently has an annual percentage yield (APY) of 4.08%.

The  promo savings account rate is only on their Anniversary Savings Account. The minimum opening deposit is $1,000. The rate is only available online.

Broadway Federal Bank is based in Los Angeles, California and has several bank branches in California. The account is FDIC insured up to $250,000 until December 31st, 2009, then coverage reverts back to $100,000 on deposits. This is one of the best online savings account rates available today.

Finding a decent rate on a savings account isn’t an easy thing to do these days. Savings account rates have been decreasing for over a year now, falling as fast as the economy.

Monitor Bank Rates will post a great rate being offered by a bank and in less than a month the rate posted by the bank will have decreased on average of over one percent.

Over a year ago one could find online savings account rates around five percent. That’s changed since the Feds have been lowering rates. Most savings account rates are in the three percent to four percent range.

Savings account deals we are aware of right now include:

These rates are out of date, please check the bank’s website for more current rates.

• Hudson City Savings Bank’s Internet Money Market Account, currently yields 2.40%
• Doral Bank Personal Savings Account, currently yields 2.25%, the rate was 3.50% earlier this month
• Costco/Capital One Online Savings Account, currently yields 2.55%

Savings account rates and yields are so low now it’s just a matter of time before rates start creeping up again. Once the economy starts to improve the Fed will start increasing rates to keep a handle on inflation.

The Fed increasing rates will spur the banks to increase rates on deposit accounts including savings accounts, money market accounts and certificate of deposits. Considering how bad things are now that might not be until the beginning for the middle of 2010.

Update: This post is out of date, please check the bank’s website for more recent rates.

The current economic crunch is changing the savings habits of the average American. Certificate of deposit rates have been coming down, but the U.S. savings rate has been going up. The savings rate is now 3.6%, up from 2.8% in November last year. While one year certificate of deposit rates are averaging a low of about 2.0%, a year ago you could find one year certificate of deposit rates of up to 5.0%.

The near record low CD rates are mainly due to the Federal Reserve Bank lowering the Federal Funds Rate ( the interest rate which banks lend their funds deposited at the Federal Reserve to other banks usually overnight) to historic lows. The current Fed Funds rate is targeted between 0% and 0.25%. Also contributing to the low deposit rates on certificate of deposits and savings accounts is the Troubled Asset Relief Program (TARP). Banks are funding their reserves by participating in TARP so they have less of a need to lure depositors with those special high interest promotional CD rates.

The high savings rate is mainly due to the majority of the people opting to save rather than to spend. People are socking away money because they are scared of the current economic crises. With this trend, financial experts expect the saving rate to increase to double digits by the end of the year. It’s interesting to note that at the height of the housing bubble in 2005, the savings rate was negative. If you were a home owner your net worth was increasing by leaps and bounds as the value of your home increased so there was no incentive to save money.

With more people opting to save, the problem is finding a decent interest rate on your savings. One of the better options for your savings is a certificate of deposit. Even during theses trying times, financial institutions and banks are using creative methods to attract cash from depositors. As we stated above the average rate for a 12 month CD is nearing just 2.00%, but there lots of good offers to be found.

Discover Bank is offering $50 for opening a new CD account online. Just deposit a minimum of $10,000 and Discover Bank will add $50 to your account. Offer good until February 28, 2009. To earn the cash bonus, a minimum deposit of $10,000 in new funds must be received by March 15, 2009 and the funds must remain on deposit for at least 90 days. The cash offer will be credited to your Discover Bank account 4 to 6 weeks after the 90-day period.

Another promotional CD rate is being offered by Hudson City Savings Bank. The bank is currently offering one of the best CD rates for a 1 year CD. The current annual percentage yield is 2.75%. The minimum deposit balance requirement to earn the 2.75% APY is $5,000. The certificate of deposit is insured by the Federal Deposit Insurance Corporation for up to $250,000 until December 31, 2009, and then the coverage reverts back to $100,000.

This post has been featured on: http://www.greenpandatreehouse.com/2009/03/festival-of-frugality-167/

HSBC is offering two promotional checking accounts, the first promo checking account is a $75 bonus for opening an HSBC Plus Checking Account. The second promo checking account is $25 for opening a Choice checking account. The offers are good until March 31st, 2009.

To qualify for either bonus certain qualifications have to be met.

HSBC Plus Checking Account $75 bonus qualifications and details:

• Minimum opening deposit of $8,000 to receive the bonus
• Deposit must be “new money”, money not currently held in HSBC accounts
• Limited to one (1) offer per household
• Once the qualifications have been met the $75 promo bonus will be deposited into the account within 6 to 8 weeks
• There is a $15 monthly fee if your combined balances “related to your checking account is below $15,000
• The annual percentage yield (APY) is a pathetic 0.05%

 HSBC Choice Checking Account $25 bonus qualifications and details:

• Minimum opening deposit of $3,000 to receive the bonus
• Deposit must be “new money”, money not currently held in HSBC accounts
• Limited to one (1) offer per household
• You must get a HSBC Debit MasterCard with Paypass
• Once the qualifications have been met the $25 promo bonus will be deposited into the account within 6 to 8 weeks
• There is a $8 monthly fee if your combined balances “related to your checking account is below $5,000. The fee is waived if you have direct deposit setup with the account
• You do not earn an interest rate on the account.

Hmm.. on closer look these bonus checking accounts are only a good deal if you have other accounts with HSBC, even then you’re not earning any interest on your deposit. Crunch the numbers to see if it’s worth it.

HSBC Checking Account Bonus Application

Hudson City Savings Bank of Paramus, New Jersey, is offering their “Internet Money Market Savings account” which currently has an annual percentage yield (APY) of 2.40%. The minimum opening deposit is $2,500.

To receive the 2.40% yield the minimum balance must also be $2,500. Balances under $2,500 receive an annual percentage yield (APY)of 1.40%. If the balance falls below $100 there is a $2.00 monthly account fee. As with all savings accounts there are federal regulations that limit withdrawals to six per month.

Make sure you are up to date on these  important personal tax changes for 2008.

2008 inflation adjustments:

There are eleven inflation adjustments for 2008, we have listed the top three.

• The value of each personal and dependency exemption, available to most taxpayers, is $3,500, up $100 from 2007.
• The new standard deduction is $10,900 for married couples filing a joint return (up $200), $5,450 for singles and married individuals filing separately (up $100) and $8,000 for heads of household (up $150). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
• Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $65,100, up from $63,700 in 2007.

The complete list  is here: http://www.irs.gov/newsroom/article/0,,id=174876,00.html

Itemized deductions:

If your adjusted gross income is above a certain amount, you may lose part of your itemized deductions. For 2008, the amount is increased to $159,950 ($79,975 if married filing separately). Beginning in 2008, the amount by which these itemized deductions are reduced is only of the amount of the reduction that otherwise would have applied.

Health savings accounts (HSAs):

High deductible health plan (HDHP). For HSA purposes, the minimum annual deductible of an HDHP remains at $1,100 ($2,200 for family coverage) and the maximum annual deductible and other out-of-pocket expenses limit increases to $5,600 ($11,200 for family coverage).

Limit on contributions. The maximum HSA contribution increases to $2,900 ($5,800 for family coverage). The maximum additional contribution for individuals age 55 or older increases to $900.

Maximum tax rate on qualified dividends and captial gains is reduced:

For tax years beginning after 2007, the 5% maximum tax rate on qualified dividends and net capital gain (the excess of net long-term capital gain over net short-term capital loss) is reduced to 0%. The 15% maximum tax rate on qualified dividends and net capital gain has not changed.

Personal exemptions:

The amount you can deduct for each exemption has increased to $3,500 for 2008.

You lose part of the benefit of your exemptions if your AGI is above a certain amount. The amount at which the phaseout begins depends on your filing status. For 2008, the phaseout begins at

• $119,975 for married persons filing separately
• $159,950 for single individuals
• $199,950 for heads of household
• $239,950 for married persons filing jointly or qualifying widow(er)s.

Beginning in 2008, you can lose no more than 1/3 of the dollar amount of your exemptions. In other words, each exemption cannot be reduced to less than $2,333.

Social Security and Medicare taxes:

The maximum amount of wages subject to the social security tax for 2008 is $102,000. There is no limit on the amount of wages subject to the Medicare tax.

Freddie Mac has released the results of it’s Primary Mortgage Market Survey. 

A 30-year fixed-rate mortgage averaged 5.16 percent for the week ending February 12, 2009. Down .09 percent from last weeks survey. The same time last year the average for a  30-year FRM was 5.72 percent.

A 15-year fixed-rate mortgage averaged 4.81 percent this week, down .11 percent from last week when it averaged 4.92 percent. The same time last year the avergage for a 15-year FRM was 5.25 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.23 percent this week, with an average 0.6 point, down from last week when it averaged 5.26 percent. The same time last year the average for a 5-year ARM was 5.19 percent.

One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.5 point, up from last week when it averaged 4.92 percent. The same time last year the average for a 1-year ARM was 5.00 percent.

Mortgage rates by region:

Chart source: Freddie Mac

 
Freddie Mac vice president and chief economist Frank Nothaft said “Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008’s peak set on July 24, 2008, offering many homeowners an incentive to refinance. This would translate into a monthly payment savings of around $188 on a $200,000 mortgage.”

As a result of near record low interest rates mortgage applications and mortgage refinance applications are soaring. Are we at the beginning of the end of the housing crises? Time will tell.

Let’s hope the low interest rates and goverment programs are starting to bring the housing market back to life.

President Obama announced a housing rescue plan that might help as much as nine millions homeowners.

The cost of the plan could be as much as $275 million dollars. There are three different components to the housing bailout plan.

First component:

The first component will help home owners that are currently making mortgage payments ontime, want to refinance to a lower rate but can’t refinance because they do not have enough equity in their homes. The plan will change the current restriction on Fannie Mae and Freddie Mac to allow the government-sponsored enterprises (GSE) to refinance mortgages valued at more then 80% of the home’s value.

Who qualifies?

Your mortgage debt has to be between 80% to 105% of your home’s value and your loan has to be guaranteed by either Freddie Mac or FannieMae. Your lender can tell you if your mortgage is guaranteed by Fannie Mae or Freddie Mac.

Second component:

The second component will provide incentives to lenders to alter the terms of  mortgage loans to make them more affordable for borrowers who are in trouble.   The government will pay lenders $1,000 up front if they reduce a borrower’s monthly payments to less then 39% of the borrower’s income. The government will further reduce the payment to only 31% of a borrower’s income by using funds from a new $75 billion program.

Who qualifies?

Anyone who lives in a home they own (can be a single family, 2-unit, 3-unit or 4-unit home) and is underwater, meaning the owe more then the home is worth.  You must live in a single family home or multi family home to qualify. Your lender must also be willing to reduce the monthly payments.

Third component:

Increase the credit available for mortgages by providing an additional $200 billion for Freddie Mac and Fannie Mae to buy mortgage backed securities which nobody else wants to buy these days.

Unfortunately the plan doesn’t help everyone, particuarlly if you owe more then 105% of the value of your home.  Overall the plan will help the housing market recover.

http://thepennydaily.blogspot.com

E*Trade Financial is offering a deal of 100 free trades for opening an Individual Retirement Account (IRA). The promotional deal ends on April 15th 2009. The deal is good for E*Trade Securities Traditional, Roth or Rollover IRA accounts.

The offer of free trades is only good for the first 30 days of opening and funding your new “qualified” account. The trades include stock and options trades. You pay E-Trades standard commission rate on all trades, 12.99 per trade (there are option contact fees you also also pay). Your IRA account will be credited up to $12.99 per stock and options trade within eight weeks. You are not credited the option contract fees.  

You do not have to pay an annual custodial fee for IRAs if you sign up for and maintain electronic delivery of statements and trade confirmations. If you prefer traditional mail delivery you will have to pay a $25 annual custodial fee. The fee is waived if your total assets in your linked E*TRADE Bank and E*TRADE Securities brokerage accounts are $25,000 or more.

E*Trade Financial Promo IRA Account

Falling behind on your credit card bills? Four major credit card issuers along with credit card payment networks have launched a website to help educate consumers about using credit cards.  Companies participating include credit card issuers Bank of America, Capital One, Citi and Discover Card, as well as the payments networks MasterCard and Visa.

The site, helpwithmycredit.org, has tons of information on managing credit cards, some of the information is derived from other sites including government sites. 

Several sections are listed on the site including topics to get help with your credit, learning center topics and a resource and links section.

Learning Center topics include:

• Managing Credit Wisely
• Credit Card Basics
• Credit Card Features
• Understanding Your Credit Score
• Reading Your Credit Card Statement
• Credit Counseling

There is also a phone number to call if you need help with  your credit, the number is 1-866-941-1030.

If you use the service send MBR an email letting us know more about the services they are providing.

Finding a decent rate on a certificate of deposit account these days isn’t an easy thing to do. CD rates have been coming down so fast recently the average 12 month CD rate is nearing just 2.00%. A far cry from over a year ago when one could find promotional 12 month CD rates around 5.00%.

Many of Monitor Bank Rates readers are asking the question “why are rates so low and when will rates start going up again?” 

Rates are so low these days because the economy is in a recession, as a result the Federal Reserve Bank has lowered the Federal Funds Rate ( the interest rate which banks lend their funds deposited at the Federal Reserve to other banks usually overnight) to historic lows. The current Fed Funds rate is targeted between 0% and .25%.

Also contributing to low deposit rates on certificate of deposits and savings accounts is the Troubled Asset Relief Program (TARP). Banks are funding their reserves by participating in TARP so they have less of a need to lure depositors with those special promotional CD rates we saw as recently as the 4th quarter of last yet. Granted there are still promotional CD accounts available with rates higher then the average but the rates are no where near the rates we saw last year.

To answer the second question “when will CD rates start going up again” that will depend on when the economy turns around. Rates will eventually start going up again and they might go up faster then they have come down. The reasons being there is so much money being pumped into the economy now in various forms including.

• Record low interest rates
• The stimulus package that will be signed by President Obama today
• The Federal Reserve printing money to purchasing asset backed debt to stimulate the credit markets
• The U.S. Treasury and the Feds creating a bad bank to encourage investors to buy toxic mortgage assets from banks

Last but not least all this pent up demand for housing and consumer goods will fuel inflation when people start feeling more comfortable or able to make purchases again. 

The Feds at some point will feel the economy is on strong footing and will start raising interest rates to limit the risk of inflation. As a result, deposit account rates, including CD rates will start going up.

PNC Bank will give you $75 for opening a new PNC Personal Checking Account between now and February 28th, 2009. There is a minimum opening balance requirement of $25.

The promo offer is good for PNC Bank’s Free Checking Account, Performance Checking Account, Select Performance Checking Account and Virtual Wallet Account.

To qualify for this offer you must setup direct deposit. The $75 will be credited to your account within 7 days of the first direct deposit. The deposit must happen before 4/30/09. A qualifying direct deposit is defined as a direct deposit of a paycheck, pension, Social Security or other regular monthly income electronically deposited into the account.

PNC Bank $75 Bonus Checking Account Application

WaMu $100 Checking account President's Day Promo Offer

Just for President’s Day, Washington Mutual will give you $100 for opening a checking account. You’ll need to go to your local WaMu Bank branch for this offer.

Unlike the other $100 checking account promotion, you do not need a code to get this offer. All you have to do is deposit $100 when opening the checking account. If the account remains in good standing for 90 days, the additional $100 will be deposited into the account.

If you want to take advantage of this promo checking account offer, you will need to open an account today - President’s Day, February 16th, 2009.

President Obama’s stimulus package is making it’s way through the House, through the Senate, back through the House and through the Senate for a final vote. The final stimulus bill will probably end up costing $787 billion dollars, pushing the nation’s debt level higher. There are $281 billion in tax cuts for business and individuals and over $500 billion in government spending.

What’s in the stimulus bill for the average American?

1. An income tax credit of $400 for individuals and $800 for married couples for the tax years 2009 and 2010.  The credit begins to phase out if your adjusted gross income (AGI) is over $75,000 for individuals and $150,000 for married couples. You are still eligible for the credit even if you do not owe federal income taxes (you still get the money).
2. Retirees and disabled people, including Social Security recipients, will receive a $250 refundable tax credit within 3 months after the bill is signed by the President.
3. First time home buyers will receive a tax credit equal to 10% of a home purchase up to $8,000 if they purchased a home between January 1, 2009 and December 1, 2009. A similar tax credit was passed last year but had to be paid back over 15 years, this one you don’t have to pay back. This credit starts to phase out if your AGI is over $75,000 for individuals and $150,000 for married couples.
4. For the rest of this year if you purchase a car you can deduct all state taxes, local taxes and excise taxes of a new car, light truck, RV or motorcycle. This credit doesn’t apply to used cars. Unlike the AGI for the tax credit and a first time home buyer this credit starts to phase out if your AGI is over $125,000 for individuals and $250,00 for married couples. The law should have been written to include used cars and interest payments on auto loans.
5. For 2009 you don’t have to pay federal taxes for the first $2,400 in unemployment benefits you receive, normally the first $2,400 is taxed. 
6. If you have been or are laid off between September 1st, 2008 and December 31st, 2009 the federal government will pick up 65% of the cost of Cobra health insurance for up to nine months. To receive this benefit your AGI must be lower then $125,00o for individuals and $250,000 for married couples.
7. Educational benefits include increasing the Pell Grant to $5,350 in 2009 and $5,500 in 2010. A higher education tax credit in the amount of $2,500 of the cost of college tuition and other related expenses. The AGI for this tax credit is $80,000 for individuals and $160,000. For the tax year 2009 and 2010 money withdrawn from a 529 plan can be used for computers, software and Internet service for students living at home.
8. Saving us from the alterative minimum tax (AMT), well at least some of us.
9. An increase in the amount of pretax money that can be set aside for public transperation if you commute to work. In 2009 and 2010 the amount has been increased from $120 to $23o.

Hopefully this stimulus package, the other programs the Federal Reserve and Treasury announced will get the country out of this recession.

Post was featured in http://spillingbuckets.blogspot.com

Discover Bank is offering $50 for opening a new CD account online. Between now and February 28, 2009, open a new CD account at DiscoverBank.com with a minimum of $10,000 and Discover Bank will credit your account with $50.

Discover $50 Certificate of Deposit promotion

You must enter Offer Code D100816 on the online form in order to qualify
(the above link will automatically fill it in for you).  You are welcome
to share this code with friends but they will need to either come to MonitorBankrates.com and click the link or enter the offer code on the application form in order to get the free $50.

The offer is good through February 28, 2009. To earn the cash offer, a
minimum deposit of $10,000 in new funds must be received by March 15, 2009 and those funds must remain on deposit for at least 90 days. The cash
offer will be credited to your Discover Bank account 4 to 6 weeks after
the 90-day period. Offer limited to one per customer and not applicable
for accounts opened via phone or mail.

Right now PNC Bank will give you a $300 gift card for opening a Retail Business Checking Account. The offer is good until March 31st 2009. This offer is not available to existing PNC Business Checking or PNC Merchant Services customers.

The business checking account details:

• Open a new PNC Retail Businesses Checking account
• Also open a new PNC Merchant Services account
• Activation with an initial sales deposit to the new PNC Merchant Services account within 60 days of PNC Merchant Services account opening
• The $300 cash bonus will be credited to your new PNC Retail Businesses Checking account within 90 days of the date of meeting the account opening and activation requirements
• One $300 cash promotional gift card bonus per merchant, regardless of the number of locations or agreements

The business checking account benefits:

• Next-day funding of Visa, MasterCard and Discover Network payment transactions
• No minimum balance requirements or monthly maintenance fees
• No charge for cash deposited over the counter or via Quick Deposit or Night Deposit
• Up to 500 free combined transaction items each month
• Free coin and currency orders
• Specialized retail business experience and personalized attention of a PNC Relationship Manager

The PNC Bank business checking account can be opened at a PNC branch location,  by calling PNC Bank at 1-800-762-5684 or by filling out their contact from for a bank representative to call you. Contact form

During these uncertain economic times many companies have been turning to private equity funds and sovereign wealth funds (SWF) of East Asia and the gulf countries to raise capital. In addition to those two sources of funds, companies have also been turning to Warren Buffett’s Berkshire Hathaway for badly needed capital.

The one big difference is The Oracle of Omaha’s investment is also a stamp of approval in that company’s future since Warren Buffett is a legendary investor.

Mr. Buffett is smart to take advantage of his status as an investor to drive a hard bargain when making investments in companies.  This past week Swiss Re paid for the privilege of having Berkshire Hathaway make an investment in the form of convertible notes paying a 12% coupon,  Berkshire can convert them to Swiss Re shares after three years or continue to receive “perpetual” payments of 12% a year.

Other recent investments made by Berkshire include Goldman Sachs selling Berkshire $5 billion in preferred stock late last year that pays a 10% divided and can be converted to common stock at any time at a 10%premium. In the 4th quarter of last year General Electric also sold Berkshire $3 billion of GE’s preferred stock at a guaranteed 10% dividend.

Having the Berkshire Hathaway seal of approval is expensive for companies these days but not being able to raise capital to run a business is more costly. For investors a best way to invest money is by purchasing Berkshire Hathaway stock.

Details of the U.S. Government’s bailout plan for the nation’s banks were released today.

Round two of the hundreds of billions of dollars for banks and financial institutions is designed to unfreeze the credit markets, what round one of the bailout has failed to do.

The details include a joint Federal Reserve and U.S Tresurery program to encourage investors to buy toxic mortgage-related assets from banks. The Federal Reserve will provide cash for the this ”bad bank”.

Up to $1 trillion of additional money for a program/facility that the Federal Reserve and the Treasury have jointly announced. The money will be lent against AAA-rated asset-backed securities collateralized by recently originated student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration. If the program works as the Fed and Treasury plans, it should help to restart activity in these markets and lead to lower borrowing rates. 

The Fed also plans to continue to purchase debt and mortgage backed securities from the government sponsored enterprises (GSE’s) including Freddie Mac, Fannie Mae and the Federal Home Loan Banks. Again, the idea is to lower mortgage rates to spur housing sales and the greater economy.

Bank of America is offering a 9 month certificate of deposit the bank calls “Risk Free”.  The promotional 9 month CD currently yields 2.00%. The rate is competitive but as with all CD rates these days it’s rather paltry.

To receive the 2.00% rate you must deposit at least $10,000 of “new money”, money not currently deposited at BofA. If you deposit less then $10,000 the rate is 1.75%. The minimum opening deposit for this CD is $5,000.

Bank of America’s Risk Free CD policy.

“We waive the early withdrawal penalty after the first 6 days of the account term (or the first 6 days following any partial withdrawal), when you reinvest the amount withdrawn in any Bank of America deposit account. We may require at least 7 days’ prior written notice of your intended withdrawal.”

Bank of America 9 Month Risk Free CD Application

Doral Bank Direct is offering one of the highest savings account yields available today. The annual percentage yield is currently 3.50%.

The minimum opening deposit for the personal savings account is $1,000. You also have to maintain an average daily balance of $1,000 to receive the promo savings rate. The are no monthly fees on the account if you maintain an average daily balance of at least $250.

The 3.50% APY is only available for the first 3 months of account opening. After the 3 month period the online savings account will earn interest based on the balance and the prevailing interest rate offered by Doral Bank. The promo rate is only available to new money, money that isn’t currently deposited at Doral Bank.

The online savings account is insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 until December 31st 2009, then coverage reverts back to $100,000.

After your initial deposit, you can make online savings account deposits the following ways.

• Set up Direct Deposit with your employer
• Transfer money from a linked account
• Send money from an unlinked account via wire transfer. Doral Bank Direct’s ABA # is 026073082.
• Send your deposit by mail. Check (s) must be payable to the account holder. On the back of the check write “For Deposit Only” and your Doral Bank Direct account number. Mail the deposit to:

Doral Bank Direct
623 5th Avenue
13th Floor
New York, NY  10022

You can open a Savings Account online or by mail.

Doral Bank Direct High Yield Savings Account Applications

Doral Bank Direct is offering one of the best CD rates for a 11 month CD. The CD rate also beats most of the 1 year CD rates that are available today. 

Doral Bank Direct’s promo 11 month certificate of deposit currently has an annual percentage yield of 3.50%. The minimum deposit is $1,000. As with most if not all promotional CD rates the deal is only for “new money”, money that is currently not deposited at Doral Direct Bank.

The CD account is insured by the Federal Deposit Insurance Corporation for up to $250,000 until 12/31/09, then the coverage reverts back to $100,000. Doral Bank Direct is a division of Doral Financial Corporation. Accounts can be opened online or by mail.

To open an account with Doral Bank Direct you will need:

• To be 18 years of age or older
• To be either a U.S. citizen or a resident alien
• A U.S. address and Social Security Number
• A driver’s license, state ID, or Federal ID
• Personal information including your date of birth and your place of birth
• A valid email address

Doral Bank Direct Certificate of Deposit Applications

Here is a site with more cd rates.

That’s right, H&R Block the tax preparation service company has a bank and they are offering one of the best 12 month CD rates. 

H&R Block Bank is currently offering a 12 month promotional CD rate of 3.20% with an annual percentage yield (APY) of 3.25%.

The minimum opening deposit is $250.00. Bank deposits are insured by the FDIC up to $250,000. The penalty for an early withdrawal is 30 days of interest. The account can be opened online or by mailing in for faxing a paper application. To open a business certificate of deposit you can call H&R Block Bank  at 1-866-934-9522 for more information.

H&R Block Bank Online CD Account Application

H&R Block Bank CD Account Paper Application

General Motors is offering 0% financing on auto loans for 27 of their car models. The deal is being promoted as “GM Presidents Day Sale”. The deal ends March 02 2009.  To compete I bet Ford and Chrysler will also offer 0% financing.

GM and GMAC did receive government money recently, at least they are putting the funds to work offering 0% financing. Hopefully the banks will loosen their lending standards and start lending again we can get out of this economic mess we are in.

GM.com

Is this the light at the end of the tunnel in the housing market?

The good news on the housing market.

The National Association of Realtors said that pending home sales rose 6.3 percent in December form a month earlier, the strongest gains were in the South and Midwest of the United States.  The number of pending sales year over year was down 9.5 percent in 2008 compared to 2007.

The bad news on the housing market.

The Commerce Department  reported that new home sales in December feel to an annual rate of 331,000, the lowest point on record.

The National Association of Realtors also reported the median home price in December 2008 was $175,000, down more then 15 percent from $207,000 in December 2007 and at its lowest point since May of 2003.

The one positive aspect of the credit crunch is savings rates are starting to rise. People have been cutting back on discretionary spending and all other types of spending.

The personal savings rate rose to 3.6% of after tax income from 2.8% in November. Some economists say the savings rate can reach the double digits by the end of the year. As recently as third quarter of 2005 in the height of the housing bubble the U.S. personal savings rate was negative.

Now if we can only get a decent yield on a savings account or a certificate of deposit, but that won’t come until the economy picks up and the Federal Reserve raises the Fed Funds rate, which is currently targeted in the 0% to .25% range.

chart source: U.S. Bureau of Ecomonic Analysis

Related link: Reduce debt

Webster Bank will give you up to $100 for opening a new checking account. Webster bank offers four types of checking accounts, here are the details for each checking account. The checking offers are only available to residents of NY, MA, RI and CT.

Totally Free Checking

• $25 promo checking account bonus (checking account promotion runs 02/27/09)
• Offer is valid for new checking accounts only
• Minimum opening deposit of $50 is required
• Free Visa^® Check Card with Visa Extras
• Free Online Banking and Bill Pay
• Statement eDelivery
• No direct deposit requirement
• No minimum balance requirement

WebsterOne Relationship Checking

• $50 promo checking account bonus (checking account promotion runs 02/27/09)
• Offer is valid for new checking accounts only
• Minimum opening deposit of $50 is required
• There is a $15 (or $13 with direct deposit) monthly service charge if monthly average combined balance of $4,000 in checking, savings or money market accounts, or $20,000 in combined deposit (checking, savings, CDs or money market) or home equity and installment loan balances is not maintained
• Webster Bank will not charge any fees for using non-Webster ATMs. Other banks’ fees will apply
• Higher rate WebsterOne Savings Accounts
• Free custom-style checks or 50% off any other wallet-style checks
• Free Travelers Checks

Premier Checking Account

• $100 promo checking account bonus (checking account promotion runs 02/27/09)
• Offer is valid for new checking accounts only
• Minimum opening deposit of $500 required.
• There is a $20 monthly service charge if minimum average combined balance of $10,000 in checking, savings or money market accounts, or $50,000 in combined deposit, CD or home equity and installment loan balances is not maintained
• Free ATMs everywhere, Webster Bank rebates other banks’ ATM fees
• Special Certificate of Deposit and loan offers
• Highest rate Premier Savings Account
• Dedicated Premier Banking customer service telephone line
• Free certified, bank and travelers checks
• Free Premier checks

Totally Free Small Business Checking

• $100 promo business checking account bonus (business checking account promotion runs 02/27/09)
• New business checking accounts only
• Checking account must be open between 01/12/09 and 02/27/09. Business customer must complete: 3 Visa Check Card Signature purchases OR 3 online payments of either bill pays to a third party. Qualifying transactions must be completed by 4/24/09.
• To be eligible the primary business customer must not have had an open checking account within the past 60 days at Webster Bank.
• No minimum balance
• No monthly service charge
• 500 free transactions per month
• Free Online Banking
• Free Online Bill Pay and Tax Payments
• No-fee Visa Business Check Card with Visa Extras

Webster Bank