Anyone in the market for a bank deposit or savings account who is living, working, or attending school in Carlton and Pine County, Minnesota, may want to take a peak at Northwoods Credit Union’s 6 month and 12 month CD rates.
Currently with a minimum deposit of $1,000 customers can open either a 6 month CD yielding 1.15% APY or a 12 month CD yielding 1.30% APY.
To put these offers in further perspective the national average for 6 month CDs sits at 0.45% APY and the national average for 12 moth CDs sits at 0.70% APY. The offers by Northwoods Credit Union are also the highest yielding CDs in Minnesota as of May of 2012.
Snapshot of Interest Rate Chart from Northwoodscu.org
Terms and Conditions of Certificates of Deposit from Northwoods Credit Union:
- Early withdrawal penalty will apply.
- 10 days before maturity the account holder must request the funds to be sent to his/her checking account otherwise they will be automatically invested into another deposit of the same term.
CD Rate Outlook:
Income investors should go short on deposits due to interest rates being so low. The FED has just recently reiterated their original stance on keeping interest rates at these levels until 2014, so locking in a 2 year CD should be a maximum term one would consider.
With the current rate of inflation being roughly 2.30% (as of May 2012) you’ll still be losing buying power on your dollars by investing them in bank deposits.