Certificate of Deposit Special – 15 month term 3.00% APY

March 22, 2009 1 Comment »

Greater Warren Credit Union of Ohio, is offering a special 15 month CD with a rate of 3.00% APY as of March 19, 2009. To apply for this CD and receive their “special” rate you must be able to make a minimum deposit of $5,000.

Greater Warren Credit Union CD Rates (Ohio)

6 month CD – 1.75% APY

12 month CD – 2.25% APY

15 month CD (SPECIAL) – 3.00% APY

48 month CD – 2.75% APY

60 month CD – 3.50% APY

Certificates of deposit, in general, are experiencing a unique and dramatic lull as far as rates are concerned. If you have been a frequent BankVibe reader you probably noticed our (sometimes successful) quest for 3.0% returns. In some instances we have been successful in scrounging up those rates for 18 month, 12 month and even (in one instance) 6 month maturities, however, they are very few and far between. Typically when we do discover them they are offered through local credit unions and banks which have strict geographical restrictions on who can become a member.

Our Take:

This is a very solid offer in terms of interest rate, however, we would recommend going longer than 15 months if possible. The FED has made it quite clear that, while we may think savings rates are bad now, they are going to get worse. In an attempt to stimulate borrowing for both business and individuals the FED is lowering key rates to likely between 0.25 and 0.50%. This means that all savings rates (and mortgage and loan rates) will drop as well. Once rates have bottomed out around this level, we are expecting them to flat line until the economy has shown obvious signs of turning around. This means rates may stay at unprecedented levels for years to come. We should also expect inflation to rise in the long term which as any bank deposit investor can tell you – will quickly eat away at accrued interest.

If you know of a 3.0% rate, help us out in our quest by leaving a comment below!

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