After the Fed's new late-2014 pledge, I was worried the new month was going to bring a surge of rate cuts. A few banks and credit unions did cut their CD rates, but there weren't as many as I had feared. In fact, PenFed actually raised one of its CD rates. Its 7-year CD yield increased from 2.75% to 2.76% APY. In today's world, a one basis point increase is good news. One thing nice about PenFed is that it typically keeps its rates unchanged for the month. So if you're wanting to purchase a long-term CD, you should...

It has been a while since I last took a look at AmTrustDirect. With the top rate of its Premium e-Money Market Account, I thought it was worth another look. AmTrustDirect has been around for a while, but there have been several changes. I first reviewed the internet bank in 2006. Its parent, AmTrust Bank, failed in 2009, and New York Community Bank assumed all deposits. AmTrustDirect continues to operate as a division of New York Community Bank.

AmTrustDirect offers both internet CDs and a money market account called the Premium e-Money Market Account. It has a...

Community Trust Bank is offering a 13-month CD special with some competitive rates. If you meet all the checking account requirements, you can get a very competitive rate of 1.65% APY. That requires opening a checking account with a debit card, online banking, e-statements and direct deposit. Without direct deposit, the rate falls to 1.40% APY. Without a checking account, the rate is still quite competitive with a 1.15% APY. Minimum deposit is $5,000, and new money is required. This special is listed at the bank's promotions page as of 2/3/2012.

It appears that a...

Fed Chairman Ben Bernanke testified today before the House Committee on the Budget on the economic outlook for 2012. Most of the meeting dealt with representatives trying to get Bernanke's opinions on fiscal policy issues. However, monetary policy was brought up a few times. There was one exchange between Rep. Diane Black (R-TN, 6th District) and Chairman Bernanke that I found most interesting. Rep. Black tried to understand how it can be helpful for the economy in an environment where savers have no incentive to save. Her question seemed to irritate Chairman Bernanke, and his reply was confusing.

I...

One of my readers told me in an email that an investment guy at his bank was trying to sell him on bonds while he was redeeming a matured CD. In the last month I also have seen this. While I was at PNC and Chase, the bankers referred me to one of their investment advisors. It should be noted that you may also see this at credit unions. Some examples at large credit unions include Golden 1 Investment Services and BECU Investment Services. So I thought it was worth repeating the following advice...

Reward checking accounts continue to be a good alternative to internet savings accounts at least for small balances. If you have a large amount of money that you want to keep in a liquid account, internet savings accounts will be much easier to maintain. One exception is the rewards checking account at Bank of Internet USA. Its top rate applies to all balances. However, its top rate (1.25% APY as of 2/2/2012) is low compared to other reward checking accounts with caps from $10K to $25K. If you want to maximize the interest on your liquid accounts, the low-cap...

If a 5-year term is too long for you, a 3-year CD may be a better maturity length. Unfortunately, most 3-year CD rates are under 2.00%. That's not the case with Leominster Credit Union which was one of the very few institutions to raise CD rates in February. Its 3-year CD and IRA CD have a 2.00% APY. Its 5-year CD and IRA CD rate remained the same in February, but they remain competitive with a 2.25% APY. Minimum deposit is $1,000. These rates are listed in the credit union's deposit rates page as...

It's not quite as good as last year's promotion, but it's still a good deal compared to what's available today. Salem Five Direct's new savings account promotion offers a 1.00% APY on balances up to $500K on its eOne Savings Account. This rate is guaranteed through the August statement cycle. Eligibility is limited to consumers who apply online and who do not have an existing checking or savings account. They set up a limited time offer page on its website with the details. The eOne Savings Account rate had been 0.85% before this promotion....

As I reported on Friday, Tennessee Commerce Bank (TCB) was closed by regulators, and the FDIC arranged for Republic Bank to assume all deposits. I just found out this morning that Republic Bank has decided on Tuesday to slash all TCB deposit rates to 0.05%. Also, this change will retroactively take effect on last Saturday (1/28/2012). This is what I was told when I called Republic Bank this morning at 877-684-2265. TCB depositors are free to close their CDs without early withdrawal penalties. With a new rate of only 0.05%, TCB depositors have no reason to wait before...

CD ladders can be a good way to invest in CDs. In a typical CD ladder, when a CD matures, you roll that into a long-term CD with the best rate you can find. I reviewed this strategy in this post. Many savers stick with 5-year CDs. In today's environment, some have increased the terms of the CDs in their ladders to 7 and 10 years to maximize their interest.

Poll Question

If CD rates keep falling, is there a point in which CD ladders no longer make sense? That leads me to today's poll question. When one of your...

Cardinal Bank is offering a good checking account deal. Its First Choice Checking has a 2.01% APY for balances up to $100,000 (0.31% over). These rates are listed in the bank's First Choice Checking page as of 1/31/2012. It's a limited time offer, and there's no mention how long this rate will last. Credit to iBankDesign member ichaelm for this find.

Unlike the typical reward checking account, you can qualify for the top rate without debit card usage. To qualify for the top rate, they give you the choice between direct deposit...

If you have large savings, the amount that you can make from bank bonuses may not be enough to matter. However, for savings balances around $10K, bank bonuses can be significant. For example, if you have $10K in a savings account with a 1.00% rate, you'll earn about $100 over a year. With many bonuses, you can earn $100 soon after you open an account.

The bank best known for its new-account bonuses is Chase Bank. They have long offered $100 checking account bonuses. Unlike interest rates, bonus amounts have gone up. In the last year, a $150...