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How to Balance a CheckbookCD Rates Falling Quickly - Best Options for Locking in CD Rates
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ON BY Ken Tumin
With today's surprise rate cut by the Fed, savings and CD rates will surely plummet in the next week. Already, large CD rates cuts have occurred at Ascencia, La Jolla Bank, NewBank, Pacific Mercantile Bank and Bank of Internet. A reader in the previous post had asked about some good CD rates from banks with the best protection periods. This would be useful for those who may be a week or two from a CD maturity or other source of money. Some banks will lock today's rate for a period of time after the application is submitted. Below are some banks and credit unions which meet this criteria. Note, This info is based on calls to the banks and from reports from readers. Please check with the institution to verify and for the funding details. If you have experience with these institutions, please leave a comment.
There are other CD options that may not have the best lock protections. But if you're just looking to lock in the best rates as quickly as possible, these may be good options.
[ Update 1/25/08: Alliant's CD rate just fell to 4.90% APY for the $25K min.] Alliant Credit Union is still offering 5.40% APY on terms from 12 to 24 months. I'm not sure how long it may take to join and open a CD. Readers have reported problems with the online interface. Others reported being able to join and open the CD within a couple of days (my Alliant CD review).
You might also want to look into the CDs at Pentagon Federal Credit Union which is currently offering a 5.00% APY 5-year and 5.25% APY 7-year. You can join and open a CD online immediately. (my PenFed review). Also, E-LOAN still has some decent CD rates with a 4.71% APY for 12 and 24 month terms (my E-LOAN CD review). The only option to fund is by ACH transfer, but you can apply tonight and lock in today's rate. Note, E-LOAN often changes their rates on Wednesday.
Edit 1/23/08: Added reference to WaMu terms for early withdrawal penalties.
- Capital One - 4.75% APY 48mo, 4.85% APY 60mo, 5.15% APY 84mo, 5.30% APY 120mo, Locks at time of application. You have 10 days to fund. Can be funded by check, wire or ACH. Early withdrawal penalty is 6mo interest for terms 12mo and longer. Note, rates likely to change tomorrow.
- WaMu - 4.75% APY 60mo, Locks at time of application. You have 30 days to fund. Can be funded by check, wire or ACH. See page 48 of account terms and conditions (pdf) for early withdrawal penalties.
- KeyDirect - 4.75% APY 30-47mo, 5.40% APY 84mo, 5.70% APY 120mo Locks at time of postmark of the mailed check. Early withdrawal penalty is 12mo inteest for terms of 48mo and longer (my KeyDiret review).
- Patelco CU - 4.80% APY 36-60mo, Locks at time of application. You have 10 days to fund. Can be funded by check or ACH. Early withdrawal penalty is 3mo interest on all terms (my Patelco review).
There are other CD options that may not have the best lock protections. But if you're just looking to lock in the best rates as quickly as possible, these may be good options.
[ Update 1/25/08: Alliant's CD rate just fell to 4.90% APY for the $25K min.] Alliant Credit Union is still offering 5.40% APY on terms from 12 to 24 months. I'm not sure how long it may take to join and open a CD. Readers have reported problems with the online interface. Others reported being able to join and open the CD within a couple of days (my Alliant CD review).
You might also want to look into the CDs at Pentagon Federal Credit Union which is currently offering a 5.00% APY 5-year and 5.25% APY 7-year. You can join and open a CD online immediately. (my PenFed review). Also, E-LOAN still has some decent CD rates with a 4.71% APY for 12 and 24 month terms (my E-LOAN CD review). The only option to fund is by ACH transfer, but you can apply tonight and lock in today's rate. Note, E-LOAN often changes their rates on Wednesday.
Edit 1/23/08: Added reference to WaMu terms for early withdrawal penalties.
