It seems that one small silver lining of these ongoing bank troubles is that well, banks need more money in order to keep afloat. This means they are more willing to pay us more $$$ for the privilege of holding onto ours. Even the big banks are starting to play along. Thanks to Brian and John for their respective updates.
If you have a decent balance and are willing to lock up your month for a while, below are some nice rates with terms of a year or less. Interest rates might be going back up soon to combat inflation, so locking in a CD longer than that might not be the best idea.
- Bank of America has a 7-month CD paying 4.11% APY. $5,000 minimum.
- Washington Mutual has a 8-month CD paying 4.25% APY. $1,000 minimum. They still offer their no-minimum liquid savings account at 3.30% APY.
- Wachovia has a 12-month CD paying 4.25% APY, as well as a 7-month CD paying 4% APY. $5,000 minimum.
The online bank arena remains the place to be if you want high yields and minimal restrictions, including the ability to withdraw money at any time. All are still FDIC insured.
- HSBC Direct is offering 3.50% APY with no fees and no minimum balance requirements, guaranteed until 9/15.
- FNBO Direct is offering 0.85% APY with no fees and no minimum balance requirements, and has maintained a decent track record of consistently high rates.
- Everbank also has a savings account that offers a nice 4.65% APY for the first 3 months, and then 3.51% APY afterwards. Not bad, considering even the non-special rate is very competitive. I guess that is why they call it the Yield Pledge Money Market account, since it “pledges” to stay amongst the top 5% of competitive banks. There is a minimum balance requirement of $1,500 to avoid fees.