6 month CD Rates

6 month CD Rates in the Spotlight:

(All rates listed in the posts below are time sensitive offers. Refer to the date of the post for accuracy.)

6 Month CD Rates, Texas Credit Unions – November 29, 2011 – Couple of enticing offers for Texas residents looking to stock away some spare cash in a short term bank deposit. Currently Caprock Sante Fe Credit Union out of Salton, Texas and Chasewood Bank out of Spring, Texas are offering 1.20% APY and 1.16% APY on their 6 month CD’s, respectively. In an environment where the national average for 6 month CD’s hovers around 0.50% APY, these offers are pretty substantial.

Oklahoma Deals on Six Month CD’s – November 27, 2011 – If you reside in Oklahoma or even a neighboring state you may be able to lock in some pretty competitive CD rates with one of the three local institutions mentioned below. We pitted the top offers on short term deposits from local banks and credit unions serving Oklahoma state residents against those available throughout the country and found that local institutions are leading the way (and quite handily).

San Diego, CA 6 and 12 Month CD Rates – October 25, 2011 – Check out Beal Bank in San Diego. They’re offering consumers six month certificates of deposit with yields just squeaking over 1.0% (at 1.004% APY to be exact) along with twelve month CD’s featuring APY’s of 1.15%. The national average for deposits with these terms are 0.50% for 6 month CD’s and 0.80% APY for 1 year CD’s – to give you a better idea of where they stand.

Tiny Credit Union in New Mexico Offering Best Six Month CD’s – October 24, 2011 – We just got word on some excellent 6 month CD rates coming from an extremely small credit union (977 members) in New Mexico. Currently Quay Schools Federal Credit Union of Tucumcari, NM, is offering six month CD’s yielding an APY of 1.26% requiring a minimum deposit of $10,000. This rate is more than double the current national average for 6 month CDs which sits at around 0.48% APY.

7 Month CD Paying 1.05% APY – Available Nationally – October 18, 2011 – For a limited time Atlantic Coast Bank (member FDIC) of Georgia and Florida is offering consumers a promotional 7 month CD yielding 1.05% APY with a minimum deposit requirement of $1,000. And even though their physical branches reside in the southeast, consumers can obtain the deposit products from around the country.

A 6 month CD is the most popular short term deposit product. Having cash only tied up for a six month period allows consumers to have relatively easy access to it. In a down-turned interest rate climate such as the one we are currently experiencing consumers generally opt for short term deposits with 6 month maturities. When interest rates begin to rise, they can then take their funds and move them into bank deposits with longer maturities.

In a nut shell, you never want to go long on a CD when interest rates are low. Despite the fact that you could garner a higher interest rate on the longer deposit, you still have the potential of losing out on a higher interest rates in a better environment.

For example, let’s say two people invested in bank CD’s today. One took a 6 month CD, the other took a 5 year CD. While the individual with the 5 year CD may have received a 2% APY and the individual with a 6 month CD just a 0.80% APY, the one who took the 5 year CD doesn’t have access to his/her money for 5 years – and will garner just 2% annually even if rates rise again. So in this example let’s say during the the 3rd year interest rates rise to normal levels so that a 6 month CD is then providing a 3% APY. The individual who invested in the 6 month CD can then go long or continue purchasing 6 month CDs while the individual who tied up his money in a 5 year CD is stuck just garnering 2% annually until his product has matured.