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Where To Park Your Cash

Monday, August 8, 2011 - 2:43 PM
From SmartMoney.com
Throwing in the towel? For nervous investors looking for a place to park their cash until this market maelstrom blows over, some options are better than others.

Yields on cash haven't been good for a long time, but in recent months, some banks have souped up their offers. Some checking accounts now tout interest rates up to around 3% and money market accounts as high as 1.15%. Meanwhile, roughly a dozen banks recently revamped their certificates of deposit by eliminating penalties on early withdrawals and allowing interest rates to rise for those consumers who stay locked in.

For the banks, it's been a campaign to win back savers. Now, with the stock market in free-fall and bonds also risky, near-cash investments look like one of the few remaining safe havens for consumers.

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4
WhataBummerWhataBummer413 posts since
Oct 15, 2010
Rep Points: 1,702
1. Monday, August 8, 2011 - 4:40 PM
I'm disappointed in the article's listing of banks that have eliminated early withdrawal penalties on some special CDs. Here's what the article mentioned. I've found the yields for each on the banks' websites:

Bank of America's Risk Free CD: 0.30% 9-month CD. Early withdrawal penalty is waived after the first six days of the account term (BofA's web page)

PNC's Ready Access CD: 0.25% 12-month CD & 0.15% 3-month CD. No early withdrawal penalties after the first 7 days. Partial withdrawals are not permitted (PNC's web page)

Sovereign Bank's Step-Up CD: 3-year CD with an average 1.39% APY (1.00% for year 1, 1.40% for year 2 and 1.75% for year 3) (Sovereign's web page)

And the last of these special CDs mentioned is Ally Bank's 4-year Raise Your Rate CD which is the only decent deal out of these CDs. I have more details in my 4-year Raise Your Rate CD review. Note, the APY has recently fallen to 1.90%.
3
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
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