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Tuesday, November 04, 2008

Best 1-Year CD Rates with FDIC

Before the Federal Reserve lowered the Fed Funds Rate to 1.00%, I bought a 4.30%, 1-Year CD at Wachovia Bank. Banks have to pay the US government 5.0% to get money from Treasury Secretary Hank Paulson's "troubled asset relief program" or TARP for short. Rather than pay the government 5.0% for TARP money, they are better off bringing in new customers with high CD rates despite the low Fed Funds and US Treasury rates.

Comerica Bank has a special 4.00% APY 1-year CD with FDIC insurance up to $250,000. Details:
  • 4.00% APY1
    • 12 month term
    • $2,500 minimum deposit
    • Checking account required
    • 800-589-1400

Funds are FDIC insured to the maximum amount allowed by law.

You can also get a 4.00% 1-Year CD at Wachovia Bank with no checking account restriction with only a $1,000 minimum deposit.

Bankrate.com lists the best 1-year CDs for today, but it does not include Wachovia Bank or Comerica Bank so it pays to look around.

From Bankrate.com:
INSTITUTION
RATE
APY
MIN.
DEPOSIT
VirtualBank
Palm Beach Gardens, FL
4.35 4.45 10000
Corus Bank
Chicago, IL
4.36 4.45 10000
Flagstar Bank
Troy, MI
4.33 4.40 500

Midvale, UT
4.27 4.36 500
E-LOAN
Pleasanton, CA
4.27 4.36 10000
State Bank of India
New York, NY
4.25 4.32 5000
Omni National Bank
Atlanta, GA
4.16 4.25 5000
Advanta Bank Corp.
Salt Lake City, UT
4.16 4.25 10000
Pacific Mercantile Bank
Costa Mesa, CA
4.13 4.22 10000
Imperial Capital Bank
LaJolla, CA
4.12 4.20 2000
EverBank
Jacksonville, FL
4.07 4.15 1500
UmbrellaBank.com
Birmingham, AL
4.02 4.10 1000
AIG Bank
Wilmington, DE
3.98 4.06 2500

Columbus, OH
3.97 4.05 500
Stonebridge Bank
Exton, PA
3.92 4.00 500
California First National Bank
Irvine, CA
3.93 4.00 5000
IndyMac Federal Bank
Pasadena, CA
3.92 4.00 5000
Discover Bank
New Castle, DE
3.85 3.92 2500

New Federal Deposit Insurance (FDIC) Limits:
Congress has temporarily increased FDIC deposit insurance from $100,000 to $250,000 per depositor through December 31, 2009. Changes have also been made to other account types.

Kirk Lindstrom's Investment Letter Performance

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