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Retirement Savings: How Much Should I Save Each Month?Deposit Power Program Progress
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ON BY Ken Tumin
The Open Period for BestCashCow.com's Deposit Power Program is nearing the end. This is the program I had mentioned last week. The program's goal is to pool together pledges for a 6-month CD during a 2-week Open Period. Then the pledges will be used to shop for the best 6-month CD rate at a bank (official details here). To get the leverage needed to extract a high-rate CD from a bank would require a large pledge amount from lots of people. So far, the pledges total about $1.9M from 25 people. It's not enough to excite any banks. As the BestCashCow.com team admits:
Pledges range from $5K to $700K. There had been a $1.7M pledge which isn't shown anymore. The pledges are posted on the message forum thread, and there's no obligation for posters. That makes it easy to pledge but also easy for a joker to make a fake million dollar pledge. I suppose the BestCashCow team is filtering out these.
If they were able to get tens of millions in pledges, I wonder how high a rate they would be able to get from a bank. Would 5% be possible? I've found several credit unions offering short term CDs of 5% or better. Currently, World Savings Bank has a non-advertised 5-month CD rate of 4.65%. The best 6-month CD rate is currently 4.30% APY from Corus Bank. Corus Bank is also offering a 12-month CD of 4.60% APY.
We are concerned that the current amount pledged remains well below that which would generate significant interest on the part of financial institutions.
Pledges range from $5K to $700K. There had been a $1.7M pledge which isn't shown anymore. The pledges are posted on the message forum thread, and there's no obligation for posters. That makes it easy to pledge but also easy for a joker to make a fake million dollar pledge. I suppose the BestCashCow team is filtering out these.
If they were able to get tens of millions in pledges, I wonder how high a rate they would be able to get from a bank. Would 5% be possible? I've found several credit unions offering short term CDs of 5% or better. Currently, World Savings Bank has a non-advertised 5-month CD rate of 4.65%. The best 6-month CD rate is currently 4.30% APY from Corus Bank. Corus Bank is also offering a 12-month CD of 4.60% APY.