This table shows the best CD rates for the five largest banks operating in the United States. These banks are Bank of America, JP Morgan Chase, Citibank, Wells Fargo Bank, and HSBC Bank North America.
CD rates (APY) at the largest US banks (
Current Data) for a $10,000 deposit.
Bank
| CD Rates - APY in %
as of 9/24/09 for $10,000
|
| 6- Mo
| 1-Yr
| 18-Mo
| 2-Yrs
| 3-Yrs
| 5-Yrs
|
Bank of America (BAC)
| 0.50
| 0.95
| 1.00
| 2.10
| 2.30
| 3.01
|
JP Morgan Chase (JPM)
Bought WaMu -Washington Mutual | 0.75
| 1.25
| 1.50
| 2.15
| 2.25
| 3.00
|
Citibank (C)
aka Citigroup & Citicorp | 0.75
| 1.49
| 1.73
| 1.98
| 2.23
| 3.44
|
Wells Fargo Bank (WFC)
Bought Wachovia - World Savings
| 0.30
| 0.60
| 0.90
15-mo
| 1.40
20-mo
| 1.90
27-mo
| NA
|
HSBC Bank North America -
Branch & Telephone Rates
| 0.25
| 0.55
| 0.55
15-mo | 0.75
| 0.75
| 1.01
|
HSBC Online Rates
| 1.10
| 1.85
| 1.85
15-mo | 1.60
|
|
|
US Treasury Rate
| 0.19
| 0.38
| NA
| 0.93
| 1.44
| 2.36
|
To see the table in full size with the current rates, click the
Bankrate.com says the average thirty year fixed rate mortgage is 5.25%:
| Product | Rate | Last week |
| 30 yr fixed |
| 5.25% | 5.20% |
| 15 yr fixed |
| 4.67% | 4.66% |
| 5/1 ARM |
| 4.29% | 4.30% |
Any idiot off the street should be able to make money running a bank that pays rates this low then lends money out for mortgages at over 5%. (Assuming a return to sane lending practices where banks make loans to people who put up a 20% down payment and have income to repay the loan.)
One way to get four of the top five banks in a single investment is with the exchange traded fund XLF (
XLF charts).
XLF Top Holdings % as of 8/31/09
J.P. Morgan Chase & Co. = 12.28
Bank of America Corporation = 11.01
Wells Fargo Company = 9.28
Goldman Sachs Group Inc. = 6.03
Citigroup Inc. = 4.11
% Assets in Top 5 Holdings = 42.70
Notes:- Bank of America or BofA (BAC stock quotes and charts) was "Nations Bank" before it bought Bank of America and took the name. BofA also bought Merrill Lynch officially as of January 1, 2009.
- JP Morgan Chase (JPM stock quote and charts) bought Washington Mutual, fondly known as "WaMu"
- Citibank (C stock quote and charts) is also known as Citigroup & Citicorp
- Wells Fargo Bank (WFC stock quotes and charts) bought Wachovia Bank- that bought World Savings Bank)
- HSBC Bank North America is the American subsidiary of UK-based HSBC Holdings plc. The Hong Kong and Shanghai Banking Corporation, also a subsidiary of HSBC Holdings, acquired a 51% shareholding in Marine Midland Bank of New York in 1980 and extended to full ownership in 1987. The banks continued to operate under the Marine Midland name until 1998, when the branch offices were rebranded as HSBC Bank USA.
A survey of large and small banks for best rates by term
Disclaimer: I own C (
charts) and XLF (
charts) in my personal account. I also cover C and XLF in
my investment letter where I trade them around a core position currently in the money for both. I could sell all shares at any time to lock in my profits if my opinion sours on the sector as a whole.
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