If you must invest in one of Bank of America’s savings products we would recommend looking through their “promotional offers.” The rates Read more...]]> So far in 2012, Bank of America’s FDIC-insured savings accounts and certificates of deposit are pretty much on par with the nation’s other largest banks – quite terrible. The highest yielding CD offered from Bank of America is currently their “10 year CD” which is yielding just 2.30% annually.

If you must invest in one of Bank of America’s savings products we would recommend looking through their “promotional offers.” The rates on these products are still well under the national average (and a far cry from some of the top rates by credit unions) but provide the best yields for their specific term out of all of BofA’s savings products.

Currently Bank of America is running three deposit promotions – a 9 month CD, 12 month CD and 18 month CD. All of these products are available as standard deposits or IRA CDs. They are available through BofA’s online channel only and require a minimum deposit of between $2,000 and $10,000.

Bank of America’s Deposit Rates 2012:

(Rates accurate as of April, 2012. Visit www.BankofAmerica.com for updated rate information.)

Promotional CDs and IRA CDs:

- 9 month CD yielding 0.30% APY with a minimum deposit requirement of $5,000 for standard deposits and $2,000 for retirement accounts.

- 12 month CD yielding 0.45% APY with a minimum deposit requirement of $10,000 for standard deposits and $2,000 for retirement accounts.

- 18 month “Opt Up” CD yielding 0.55% APY with a minimum deposit requirement of $10,000. This product is only available as a standard CD. After 6 months you have a one-time option to raise the rate for the remaining 12 months. The new rate will be based off of current market conditions at that time.

Regular CDs (2012 Edition):

- 7 to 89 day CD yielding 0.25% APY.

- 90 day to 23 month CD yielding between 0.28% and 0.35%.

- 2 year to 35 month CD yielding 0.40% APY.

- 3 year to 47 month CD yielding 0.60% APY.

- 4 year to 59 month CD yielding 0.85% APY.

- 5 year CD yielding 1.10% APY.

- 10 year CD yielding 2.30% APY.

If you do open one of Bank of America’s deposits, keep in mind they will automatically renew into new CDs with the same duration if you do not give them sufficient notice of cashing out of the account. An early withdrawal penalty also applies for all of their deposits.

Variable rate savings account are available as well through BofA but are currently providing abysmal yields. Their money market accounts feature interest rates between just 0.15% and 0.35%  depending on your daily balance.

In many respects this is to be excepted as the national average for CD rates has lowered slightly since the Spring of last year when we last covered Read more...]]> Chase Bank’s CD rates in 2012 are providing even lower yields than they were last year around this time. In fact, to garner returns of over 1 percent on a deposit with Chase Bank you’ll need to lock away your money for an entire decade!

In many respects this is to be excepted as the national average for CD rates has lowered slightly since the Spring of last year when we last covered Chase’s deposit rates, and CD rates as a whole are currently experiencing record lows across the board.

Chase Bank essentially offers two product lines for deposits. They have “regular CDs” which require a minimum deposit of just $1,000 and “Special CDs” which require a slightly higher deposit of $10,000.

Their “special CDs” really feature nothing that “special” and come with oddball durations such as 13 month – 120 month terms.

If you plan on opening a deposit with Chase you’ll also need to know that you must open a Chase checking account in conjunction with the deposit. Chase Bank is notorious for their checking account fees which range from $6 per month to $25 per month if certain balance requirements aren’t met. However, if you have a linked deposit account valuing at least $25,000 they will waive this fee.

Chase Bank CD Rates in 2012:

Regular Deposit Rates

- 6 month CD providing an APY of 0.20% with a minimum deposit requirement of $1,000.

- 12 month CD providing an APY of 0.25% with a minimum deposit requirement of $1,000.

- 18 month CD providing an APY of 0.35% with a minimum deposit requirement of $1,000.

- 24 month CD providing an APY of 0.40% with a minimum deposit requirement of $1,000.

- 36 month CD providing an APY of 0.50% with a minimum deposit requirement of $1,000.

Special Deposit Rates

- 13 month CD providing an APY of 0.40% with a minimum deposit requirement of $10,000.

- 36 month CD providing an APY of 0.75% with a minimum deposit requirement of $10,000.

- 120 month CD providing an APY of 2.00% with a minimum deposit requirement of $10,000.

Contact Chase at www.Chase.com for further information, terms and conditions.

2012, however, may turn out to be quite a rewarding year for foreign currency CD holders. Although these products certainly dont come without risk, they pose as an enticing investment vehicle for a more risk-seeking consumer willing to perform the required due diligence.

With US bank deposits yielding less than the current rate of Read more...]]> It’s tough out there for income investors looking for bank deposits with attractive rates – at least domestically.

2012, however, may turn out to be quite a rewarding year for foreign currency CD holders. Although these products certainly dont come without risk, they pose as an enticing investment vehicle for a more risk-seeking consumer willing to perform the required due diligence.

With US bank deposits yielding less than the current rate of inflation, many savers are looking more favorably upon these CDs as an alternative.

Before we get into the current yields provided by some of these products, we should point out the major underlying risk associated with them – and that is the fluctuation in world currencies. When a currency rises or falls against the US dollar during the life of your CD this difference will be directly reflected in your earnings - putting at risk even your principal.

For example, if you happen to invest in the Brazilian Reel in 2012 and take advantage of their current 3 month CD yielding 5.09% APY, you will only garner this 5 percent return if the relative value of the US dollar and the Brazilian Reel remain constant throughout the life of the CD. If, for example, Brazil encounters heavy inflation during this period and sees the value of it’s currency sink against the US dollar your earnings will also sink accordingly.

Hypothetical Scenario #1

You invest in a Brazilian Reel 3 month certificate of deposit with a featured APY of 5.09 percent. During this period the Brazilian Reel sinks by 3.0 percent in value against the US dollar. You’re 5.09 percent CD is then only garnering 2.09% in real returns (still a much better yield than what is offered domestically).

Hypothetical Scenario #2

You invest in a Brazilian Reel 3 month certificate of deposit with a featured APY of 5.09 percent. During this period the Brazilian Reel rises by 3 percent in value against the US dollar. You’re 5.09 percent CD is now garnering 8.09% in real returns.

As you probably infer, picking stable currencies is crucial to realizing projected gains, and therefore thorough research should be had before investing in any foreign currency CD.

Top Foreign Currency CD Rates in 2012:

1) Brazilian Reel – 3 Month CD yielding 5.09% APY.

2) South African Rand - 3 Month CD yielding 3.55% APY.

3) Australian Dollar - 3 Month CD yielding 2.78% APY.

4) Indian Rupee - 3 Month CD yielding 2.02% APY.

5) Mexican Peso - 3 Month CD yielding 1.89% APY.

Source: EverBank

So far in 2012, the APY’s paid on Citi’s most popular savings products have lagged the national average by heavy margins. In fact, their most lucrative rate today sits at just 1.0% and comes with a 5 year term. To put this in perspective, the national average for 5 year CDs sits at Read more...]]> CitiBank’s deposit rates fell rather sharply over the last year despite already being at all time lows in 2011.

So far in 2012, the APY’s paid on Citi’s most popular savings products have lagged the national average by heavy margins. In fact, their most lucrative rate today sits at just 1.0% and comes with a 5 year term. To put this in perspective, the national average for 5 year CDs sits at almost 1.50% APY, while the best deals nationally come in around 1.80%.

In our most recent survey of CitiBank’s CD rates we found a range of just 0.15% APY to 1.00% APY for terms between 3 months and 5 years. This is a rate cut of nearly 50% from what we were seeing last year around this time. In our March of 2011 survey, we recorded a range of between 0.20% APY and 2.00% APY for the same 3 month to 5 year deposits.

CitiBank’s CD Rates 2012 (California based branches):

Although these rates are pulled from California based branches, their APY’s across state borders don’t change much (if any).

If you happen to qualify as a “CitiGold Private Client” then you may be entitled to higher interest rates, however if you don’t have a large chunk of cash set aside you likely wont be considered.

A minimum deposit requirement of $1,000 is required for all CitiBank deposits and an early withdrawal penalty will apply..

Overall outlook for CD rates in 2012:

Expect more extraordinarily low rates from all major US banks (not just CitiBank) throughout all of 2012. The FED has made it clear that interest rates won’t rise until at least 2014 (even if the economy strengthens), so both banks and credit unions will have little incentive to raise any FDIC-insured savings rates.

Is this surprising? Not at all. After FED Chairman Ben Bernanke came out with his latest Read more...]]> We regularly hype Melrose Credit Union’s CD rates here on BankVibe.com simply because this not-for-profit, Bronx, New York, based credit union is almost always crushing the national average when it comes to deposit rates. However, as of the beginning of this year, we’ve seen Melrose Credit Union finally scale back on some their featured CD rates.

Is this surprising? Not at all. After FED Chairman Ben Bernanke came out with his latest statement reminding Congress and the general public that they plan on keeping interest rates at these record low levels through 2014, it seems like most banks and credit unions are doing exactly what Melrose did. And although Melrose lowered their CD rates, we gotta hand it to them for holding out for so long. The last time they cut their rates was at the end of the summer of 2011, and interest rates in general have fallen slightly since then, with almost every major bank and credit union making some additional cuts to their FDIC insured savings products.

Related: See how much banks borrowed from the FED in 2008.

Melrose Credit Union’s CD Rates (Feb 2012):

(Visit Melrosecu.org for further information regarding interest rates.)

To put the above CD rates in further perspective the current national average for 6 month CD’s, 12 month CD’s and 3 year CD’s sit at roughly 0.40% APY, 0.60% APY and 0.95% APY, respectively.

If you’d like to take a quick look back at the history of Melrose Credit Union’s CD rates check out further articles from our archives noting their premium savings products.

They were featured in our 2011 round-up of the best CD rates from credit unions with their 3 year CD’s pumping out a return of 1.91% APY in the beginning of May of last year. And if you take a look even further back you’ll see they were once featuring the best 12 month IRA CD rates in the nation (during the end of 2010).

Why 3 year CD’s?

Because interest rates are horrendous and are expected to remain this low for the foreseeable future. We made a similar argument based on this reasoning for 2 year CD’s a short while ago but we believe the same could Read more...]]> One could make a valid argument currently for 3 year CD’s as being a decent investment vehicle in today’s landscape for those on the hunt for FDIC insured bank deposits.

Why 3 year CD’s?

Because interest rates are horrendous and are expected to remain this low for the foreseeable future. We made a similar argument based on this reasoning for 2 year CD’s a short while ago but we believe the same could likely apply for 36 month deposit products as well.

Basically the FED has made it quite clear that interest rates are not going to rise anytime in 2012 or 2013. And as a hunch, we see it completely rational to assume that key rates could also remain at these historically low levels even through 2014 as well.

A number of economical factors must change (and rather dramatically at that) for anything significant to change on the interest rate front for savers within the next 3 years. First, regardless of the record low mortgage rates for both new home purchases and refinancing, there is still a vast supply of homes on the market (and in foreclosure) that simply aren’t selling. This dynamic gives the FED absolutely zero incentive to increase rates when homes can’t even sell with the lowest mortgage rates we’ve seen in decades. Second, the jobless rate is still sitting at an unprecedentedly high rate which means there is a shortage of potential home buyers to soak up this plethora of real estate on the market. So while these factors need to make a positive turn for interest rates to begin to rise we find it highly unlikely.

That being said, rates will inevitabley rise again. So for those looking to lock in the most optimal rates for our current economic conditions, which then free up these funds at a time when savings rates could be on the rise again, we find the 36 month deposit as one of the best FDIC insured savings product to take advantage of in 2012.

The endless decline in CD rates throughout the last year has left little room for optimism of any upward trend arising in 2012, but if the economy strengthens we Read more...]]> Probably more of the same – flat lining rates from credit unions and online banks and continued near zero interest from the nation’s largest banks.  And just like with anything, it helps to look in the past when trying to predict the future.

The endless decline in CD rates throughout the last year has left little room for optimism of any upward trend arising in 2012, but if the economy strengthens we may see rates at least bottom out.

For CD rates from the nation’s large powerhouse banks things went from terrible to pathetic. Citibank somehow managed to cut their 6 month CD rates from 0.25% APY during the beginning of last year (March) to 0.15% as of today, according to our 2011 survey. They also managed to slash their 5 year CD’s in half from 2.0% APY to just 1.0% APY currently.

Bank of America’s CD rates fell last year but to a lesser degree. Their 6 month CD rates stayed at a paltry 0.30% APY throughout the year, while their 5 year CD’s dropped to 1.21% APY from 2.0% according to this 2011 survey.

Both Chase Bank and Capital One encountered flat lining rates on their deposit products.

Capital One’s 6 month and 5 year rates both remained at 0.25% APY and 1.25% APY, respectively, and Chase Bank’s 6 month CD’s remained the same as well (according to this survey) while their 5 year “CD rate Specials” dropped from 2.25% to 1.55% APY.

CD rates from credit unions dropped a little more last year simply because they had more to lose. However, if you’re a new saver then continue to keep your eyes peeled from promotions like this one. For those that don’t recall the offer, NuVision Federal Credit Union of southern California, was featuring a 10 month CD yielding 10% APY on deposits up to $1,000. We know a $1k maximum deposit doesn’t do much good to a lot of people, but if you’re new to saving and don’t have too much to stash away it’s certainly worth it to stay on the hunt because lucrative promotional rates are still out there.

Navy Federal Credit Union also kept their popular “Easy Start” CD promotion available throughout the year without dropping the rate. This promotion features a 12 month CD yielding 3.0% APY on deposits up to $3,000.

In general, I wouldn’t hold my breath for any substantial change in CD rates in 2012. If the bleeding were to stop across the board and rates were to simply flat line, I think this would be a step in the right direction. The biggest factor going into 2012 shaping the landscape for deposit rates is going to be the overall strength of the economy. When/if the economy grows stronger this year will signal the FED that they can begin raising rates, however, until this happens we’re likely going to be in the same spot we were last year.

We first surveyed the top ten Read more...]]> The highest interest rates on certificates of deposits offered from local Jacksonville, FL banks and credit unions are struggling to match those of top nationally available institutions online. In our most recent survey isolating Jacksonville area banks and credit unions and comparing them with the top online and nationwide banks from our database, we found that rate-hunting consumers were better off going with the online ones.

We first surveyed the top ten 6 month CD rates with Jacksonville area zip codes and compared them with the top 10 from our database and found that not one local credit union or community bank was amongst them. There are certainly plenty of deals on CD rates from local institutions in Florida (when compared to the national average), but when you narrow that down to just the Jacksonville area, local institutions are scarce and not at all competitive with their rates.

After surveying 6 month CDs we moved on to 1 year CDs, and all the way up to 5 year deposits. Below are the local banks offering rates that could hang with our top ten rates from online banks and nationally available institutions from our database.

Noteworthy Local CD Rates (Jacksonville, Florida):

- Compass Bank (Orange Park) has a 2 year CD yielding 1.25% APY requiring a $5,000 minimum deposit.

- Navy Federal Credit Union (Jacksonville, FL) has a 3 year CD yielding 1.45% APY requiring a $1,000 minimum deposit.

- Urban Trust Bank (Orange Park) has a 3 year CD yielding 1.45% APY requiring a $500 deposit.

- 121 Financial Credit Union (Jacksonville, FL) has a 5 year CD yielding 1.95% APY requiring a $500 deposit.

- VyStar Credit Union (Orange Park) has a 5 year CD yielding 1.91% APY requiring a $10,000 deposit.

If you live in the Jacksonville area and know of a better CD rate in your neighborhood, please share by leaving a comment!