CD Interest Rates

E-LOAN increased the rates on most of its CD terms. The largest increase was on its 60-month term. That rate increased from 4.30% to 4.60% APY.

Here are some of the details on ELOAN CDs:

• Individual, Joint and Living Trust Accounts can be opened.
• Beneficiary can be added in the application
• $10,000 minimum deposit
• No early withdrawal permitted during the first 90 days
• Eary withdrawal penalty: 3 months interest for 1 year or shorter term and 6 months for over 1 year term
• Grace period: 10 calendar days
• No interest is paid past the maturity date on accounts closed during the grace period
• Interest is compounded daily and credited monthly (same as savings)
• CD is opened like savings account with one linked checking/savings account which will fund the CD
• Linked account can be your E-LOAN savings account
• Option is available to transfer interest monthly by ACH from CD to linked account
• At maturity, you can instruct E-LOAN via the secure message system to close CD and transfer money back to your linked account

US Bank has increased the rate on its CD specials. The new 59-month CD yield is 4.65% APY, and the 43-month CD yield is 4.10% APY. The shorter term yields are much lower: 3.50% APY for a 23-month CD and 2.80% APY for a 11-month CD.

One important detail regarding this CD is a severe early withdrawal penalty. According to the CD disclosure, the penalty for the 59 month CD would be over 29.5 months of interest on the amount withdrawn.

US Bank does have an online application. However, you can only open the CD online if you already have a checking account with them and you use the checking account to fund the CD. Otherwise, you have to come into one of their branches. They do not accept checks by mail to fund a CD.

US Bank has branches in 26 states. It’s a large bank with $232.8 billion in assets.

Since the Federal Reserve started cutting its short-term interest-rate target last fall, yields across certificates of deposit, savings accounts and money-market accounts have plummeted. But recently, yields on long term CDs have been rising, in part because of a rise in longer-term Treasury yields this month and investors’ expectations for higher inflation.

Some banks are already responding. While average CD rates have been relatively flat in April, a handful of banks offering high-yield CDs — such as Capital One Financial Corp, Advanta Bank and E*Trade Financial Corp. — have recently bumped up yields on some of their CDs stretching out three to five years.

KeyDirect recently raised rates on its longer-term CDs by 0.25 percentage point to 4.75% and 5% for its 60- and 84-month CDs, respectively. GMAC Bank raised the rates last week on its four- and five-year CDs to 4.35% from 4% and 4.15%, respectively. Bank of America has also increased rates on a variety of CDs stretching out as many as 47 months.

Some banks are also raising some of their short-term CD rates. Earlier this month, for example, ING Direct raised the rates on its six-, nine- and 12-month CDs to 3.3%, from 2.75%, 2.5% and 2.5%, respectively. Meanwhile, IndyMac Bank is offering special one-year CDs online with a yield of 4.15%.

American First Credit Union is offering a competitive rate on its 6 and 12-month share certificates. For a Jumbo certificate the yield is 4.03% APY. This requires a $100,000 minimum deposit. A yield of 3.77% APY is available with only a $1,000 minimum. These rates are also available in an IRA.

Membership is open to anyone who lives, works, worships or attends school in Orange County or 16 additional cities throughout the Greater Los Angeles area. You can also be eligible via select employer groups. Membership requires a $5 fee and a minimum initial deposit of $50 in the savings account.

Branches are located in the cities of La Habra, Buena Park, Tustin, Placentia and Orange. The credit union is federally insured by the NCUA.

With the recent Fed rate cuts, Wells Fargo has lowered their rates on their online CD special to 3.50% APY. Minimum balance on this certificate is $5,000, and the term to maturity is 5 months.

Aside from this special, Wells Fargo CD rates are a bit low, ranging from 1.50% to 3.00% APY.

At maturity, CD will automatically renew for the Renewal Term stated above, at the interest rate and APY in effect for CDs not subject to a Special Rate, unless the Bank has notified you otherwise.

This CD is only available online and not through brick and mortar Wells Fargo Banks.

Wachovia Bank has some pretty high rates on their special promotional CD, with a 5.05% APY yield and 5 month term. Minimum deposit for this certificate is $5,000.

This CD is only available online. Other online CDs have terms ranging from 3 to 24 months, and yields from 3.16% to 4.25%. Visit Wachovia’s rate table for more information.

Wells Fargo Bank has some of the lower CD rates available for their online and offline CDs. Currently, their highest CD rate is a 5 month 4.40% APY certificate. Aside from that, they also offer 4.20% and 4.10% for 5 year and 4 year CDs, respectively. Minimum deposit on their CDs is $5,000.

Wells Fargo also offers a range of customizable CDs, so you can choose how many months you want the deposit to be.

Umbrella Bank is currently offering 5.20% APY on their 3 and 6 month certificates. Initial deposit of $1000 required on all CD accounts. Umbrella Bank also offers IRA CDs.

UmbrellaBank.com is the Internet banking division of New South Federal Savings Bank. New South Federal is a member of the Collateral Family of Companies, which has been in the financial services industry since 1933.

Bank of America is offering an online only High Yield CD with a 5.10% APY rate and a 4 month maturity term. Minimum balance on this certificate of deposit is $5,000. You must open this account through Bank of America’s online website.

They are also offering a Risk Free CD with a 4.85% APY and 8 month maturity term. This account features:

• The ability to withdraw funds prior to the maturity date without penalties2
• A minimum deposit of $5,000 and a short 9 month term
• Get preferred CD rates when you have an Prima® checking account
• Invest up to $500,000 in one or more Risk Free CD’s

While both these rates were previously on the low end, after the Fed’s recent rate cuts they are beginning to look more competitive. In addition, if you already have a Bank of America banking account, the added convenience may make it worth looking into.

Wachovia is advertising a 5.41% APY on a 6-month CD or CD IRA. The CD minimum deposit is $5,000, and the IRA CD minimum is $2,000. You must be a new or existing checking account customer. This doesn’t seem to be listed at Wachovia’s website. This deal seems to be offered in South Florida. There are advertisements in the Daytona Beach, Florida newspaper and in the Dallas, Texas newspaper.