Bankrate's Article on 6% CDs - Hold Out for 7%?

As you have seen from this blog, 6-percent CDs are available but they're not too easy to find. This Bankrate.com discusses this issue and whether it's time to lock into one of these CDs. I don't remember seeing a 6-percent CD listed at Bankrate in the last 5 years. Bankrate claims that it only lists CDs available nationwide so you don't see locally offered CDs.

The article mentioned a few local deals such as from USE Credit Union which I mentioned in this previous post and First Bank of Highland Park. USE had been offering a 6% 18-month CD. That's now been reduced to 5.75% APY. However, USE still has the 7% APY 7-month CD but this has a maximum deposit of $2.5K. First Bank of Highland Park has a 6% APY 5-year certificate of deposit with a $5K minimum. It's only available in Illinois.

The article also mentioned buying CDs at brokerages which provide an easy way to buy high-yield CDs at top rates from multiple institutions without having to open accounts at each bank. The article mentioned a 6% 60-month CD that had Charles Schwab recently offered. Currently, it does have a nice 5.40% 3-month CD (see post).

The big question is whether you should hold out for a 7% CD? One of the bank VPs interviewed thinks 7% may be too optimistic. He might be right. With the Fed pausing and with many banks lowering CD rates, it doesn't look like we'll see widespread 7% CDs anytime soon.