Several banks and their new higher CD rates were mentioned in the article. I've mentioned most of these in my previous posts. These include:
- Wachovia's 4.75% APY 60-month CD (account review)
- National City's 5.00% APY 48-month CD (account review)
- GMAC Bank's 4.35% APY 48 and 60-month CDs (account review)
- ING Direct's 3.30% APY 6, 9 and 12-month CDs (account review)
For other high CD rates please see my weekly rate recap. I just did a post on E-LOAN and its new higher long-term CD rates.
Bank of America was also mentioned as one of the banks raising its CD rates. However, the article didn't mention the current rates. They used to have some decent rates on its 4-month special online-only CD, but the current rate is only 2.70% APY (yield may vary based on your state). Their standard CD rates may have increased lately, but they're still low. You need a term of at least 48 months for a yield over 3% APY.
One person interviewed in the article was considering a 20-year 6% CD through Charles Schwab. It appeared to be a brokered CD that was callable after 1 year. The person considering this CD admitted that it had risk due to the long term and the callable feature, but it did guarantee 6% for at least a year. If it is a brokered CD, you may be able to redeem it before maturity. But the broker would attempt to find someone else to buy your CD at the going market rate which could mean a loss worse than most banks' early withdrawal penalties. This FDIC article has more details regarding brokered CDs.