February, 2009 survey of 6-month CD rates

February 21st, 2009 · No Comments

It is time to again spend 15 minutes surveying 6-month CD rates to figure out where to create the CD representing the 5th month of our 6-month emergency fund CD ladder.  We try to target a CD anniversary date of the 25th of the month so I need to do the research a few days in advance of that.

image: http://www.freeimages.co.uk/

image: http://www.freeimages.co.uk/

Here’s what I’ve found.  Remember, these are all 6-month CD rates.

  • ING Direct’s site shows an APY of 1.25% effective 2009.02.18.
    I checked them first for two reasons.  First, we have a number of existing accounts with them and we really like the tools their website offers.  Second, we have our 1st month CD with them currently yielding 3.50% APY, and our 2nd month CD with them yielding 3.00% APY.
  • FNBO Direct’s site shows an APY of 1.50%, effective as of 2009.02.16.
    I checked them next for pretty much the same reasons as ING, but did it second because I don’t like the fact that interest is paid quarterly instead of monthly.   Plus their website doesn’t show you the accrued interest to date prior to it hitting your account each quarter.  We have existing accounts there including our existing 3rd month CD currently getting a 3.01% APY.
  • Our local credit union, ATFCU, has a 2.52% APY effective as of 2009.02.19.
    Again, I checked them due to our existing relationship there.  But they came third because, while they do offer local B&M branches we could go to, their website is harder to deal with than ING’s and FNBO’s, plus they also only pay interest quarterly and don’t show the accrued interest to date.  We have our existing 4th month CD with them currently getting a 3.19% APY.
  • Finally, I checked bankrate.com’s page for nation 6-month CD rates.  As of 2009.02.20, GMAC Bank is quoting a 2.60% APY with a $500 minimum.  That is just 0.08% above what we could get at ATFCU so, IMO, it is not worth creating a new relationship just for that.  The next highest quoted rate is for HSBC Direct where the yield is only 2.00% APY.  No thanks!

Looks like it’s time to transfer money to the local credit union again!  I’m off now to do that so that the funds will be available to create the CD on the 25th.

Tags: Savings

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