About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Survey of the Best CD Rates for August 24, 2012


Survey of the Best CD Rates for August 24, 2012

This was a quiet week for CD rate changes. It may not last long. Based on the Fed minutes that were released this week, new Fed action at the September meeting is now seen as likely. Bill Gross stated that "Fed minutes make QE3 and extended period language an 80% probability". So we may see more rate cuts in September.

The only noteworthy rate cut this week for CDs available nationwide was at The National Republic Bank of Chicago which slashed its 5-year CD yield from 1.76% to 1.41%.

On the plus side, State Bank of India NY increased its 5-year CD yield from 1.81% to 1.86%.

The highest 5-year CD rate from a bank continues to be at CIT Bank which has a 1.90% APY 5-year CD for a $100K minimum (1.85% APY for a $1K minimum).

There are only 3 large banks that are offering 2% CDs. The 2% CDs at Discover Bank and at Third Federal both have maturities over 5 years (7 years at Discover and 6 years and Third Federal). The third large bank is BBVA Compass which continues to offer a special 5-year CD with a 2.00% APY. Unfortunately, BBVA Compass's CD isn't a nationwide offer. It's only available in states where they have branches. I reviewed these 3 banks last Monday.

If you can't qualify for BBVA Compass's 5-year CD, there are still a few all-access credit unions that are offering 2% 5-year CDs. The highest yield continues to be at US Senate FCU which has a 2.12% APY for a $60K minimum deposit. This week I added Pen Air Credit Union and its 2% 5-year CD to the list. It's another credit union which makes it easy to qualify for membership via an association.

Local CD Deals

The institution with the highest CD rate in the nation had another rate cut this week. San Antonio Credit Union (SACU) reduced its 10-year CD yield from 3.45% to 3.40% this week. Its shorter-term CD rates also fell by 5 basis points.

The only other 3% CD on my list (without a small maximum deposit or checking requirements) is the 3.00% APY 30-month CD at NavyArmy Community Credit Union in Corpus Christi, TX. I don't know how this credit union can offer such a good deal. Unfortunately, this is the credit union's longest term. I'm sure many would like to lock 3% in for 5 or 7 years.

If you don't live in or near San Antonio or Corpus Christi, you'll probably be lucky to find a 2% CD. This week I added 3 credit unions which offer 5-year CDs with rates in the low 2% range. One is another Texas credit union with branches in Dallas and Houston. The other two are in Western New York and in Delaware.

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied. Since Ally Bank's 5-year CD only has a 60-day interest penalty, it's still a good deal when closed early even with the recent rate cuts.

The risks of planning for early withdrawals of long-term CDs was recently highlighted by another credit union which raised the early withdrawal penalty on existing CDs. The credit union is CEFCU which is based in Illinois. I have more details in this blog post. CEFCU is now the second credit union which has raised the early withdrawal penalty on existing CDs. Last year Fort Knox FCU did the same thing (see my blog post).

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. This CD survey blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The CD survey blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but most of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available in large areas of a state.

Yields Accurate as of August 24, 2012

Under 1-Year CD Rates

  • Noteworthy Local Deals

1-Year CD Rates

  • Noteworthy Local Deals

18-month CD Rates

  • Noteworthy Local Deals

2-Year CD Rates

  • Noteworthy Local Deals

3-Year CD Rates

  • Noteworthy Local Deals

4-Year CD Rates

  • Noteworthy Local Deals

5-Year CD Rates

  • Noteworthy Local Deals

Over 5-Year CD Rates

  • Noteworthy Local Deals

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

Related Pages: CD rates
Senior living off CD income
Senior living off CD income   |     |   Comment #1
Romney just said he won't reappoint Bernanke!

Guess who I will vote for?
Anonymous   |     |   Comment #2
Rosanne Barr?  The way things are going she has as much chance as anyone else.
Anonymous   |     |   Comment #3
Bernanke will be re-appointed.  Both Dem and Rep want low interest rates!
Anonymous   |     |   Comment #4
As much as I hate Bernanke's policy, I would reappoint him before I would ever consider Rosanne Barr after the mockery she made of our National Anthem.
Anonymous   |     |   Comment #5
Re: Senior living off CD income (anonymous) - #1, Friday, August 24, 2012 - 6:02 PM

Romney just said he won't reappoint Bernanke!

Guess who I will vote for?

Well, Romney has said the complete opposite of what he has said prior at every appearence so I fully expect him to renominate Bernanke at the earliest opportunity.
Anonymous   |     |   Comment #7
#5 is probably correct.  Easy money has just become too important a prop for Wall Street--and Bernanke is Wall Street's man.  I expect Romney to "walk back"his statement--or maybe completely "flip-flop" on it.  That's the kind of politician he is.
Suckling at the tits of government
Suckling at the tits of government   |     |   Comment #6
Guess who Bernanke will vote for.
Anonymous   |     |   Comment #8
Romney is my man, Bernanke cost me, by my conservative estimate, over $100,000 in interest lost in the last 4 years.
Anonymous   |     |   Comment #9
To number #8

If you had long term CD's you still would have CD's making over 6% for 1 1/2  years or more. You always go for the highest interest no matter how long if you are living off interest. Of course I no longer have my 10% - 15% CD's either but I surely would not want the 15% inflation or the 17% unemployment that Michigan had during the 80's either. We cannot blame others for our bad choices. As my parents used to say you made your bed now lie in it.

Anonymous   |     |   Comment #10
To poster #7.  Don't ALL politicians tell the voters what they WANT to HEAR before the elections.  Then do as they please once they are elected?  Both major political parties are equally guilty of this.  It's a matter of voting for the lessor of the evils.
Anonymous   |     |   Comment #11
Well at least we have a chance to get rid of the thief bernancke if Romney wins...we have NO chance whatsoever if Obama wins.  I will go with some chance over no chance.
Anonymous   |     |   Comment #12
This discussion here reminds me of the old African fable.  A man is sitting and screaming as a monkey continously hits him over the head with a coconut.  When the man is asked why he doesns't get up and move away, he replies "because someone else would just hit me over the head with a coconut if I moved away".

The definition of crazy is doing the same thing but expecting a different outcome.  Obama is the same thing for another 4 years.
Anonymous   |     |   Comment #13
#12  I think you are wrong about the definition of crazy.  The Old Man is actually very smart because under his tree he knows what to expect from the monkey and can find ways to deal with it.  Under a new tree, he may encounter more than one crazy monkey.  When it comes to politics, it doesn't matter what tree we select because they are all full of NUTS!
Wil   |     |   Comment #17
#12 said (paraphrasing, if I remember correctly, Winston Churchill) "The definition of crazy is doing the same thing but expecting a different outcome." That is only true assuming that there is no change in circumstances. If, for example, #12's screaming monkey had a stroke and became paralyzed, and thus no longer able to hit the old man over the head with the coconut, then the would be a different outcome despite the old man's failure to move away. But I agree with #11, better to go with "some chance" over "no chance."
Anonymous   |     |   Comment #14
Has anyone considered that Bernanke may not accept a "re-nomination"?
Anonymous   |     |   Comment #15
To Anonymous - #14, and who would not like to be the most influential person in the financial market and all that power and prestige that comes with it.
He holds insider information on the money rates, bonds, notes, futures, inflation,....shell I go on.

He can destroy a country with few more QEs and can make us all worthless by holding dollars.
You still think that part of the unemployment has nothing to do with printing money and forcing you to invest in the stock market and denys us (the savers) decent income for such a long time,

We pay the penalty price by not receiving investment income from CDs, MM, savings and so on, which has same effect as paying 70% tax on your money.
Think in reverse, If I used to get $1000/mo from my MM, now I get $250/mo, who holds my $750/mo? and is it not that a hidden back door tax?
Anonymous   |     |   Comment #16
To add to #15 great comment, if I earned a decent interest rate on my CDs today like I did several years ago, I would be spending a lot more money these days, thus helping out the economy at the same time.  And I am sure a great number of others would be doing the same.
Anonymous   |     |   Comment #18
 Now if Romney claims he will end the Fed then that would be a reason to vote for him but that is not what he is saying. Even if Romney were to throw out Bernanke somebody else would take his place, the reality is that rates are going to stay low unless the fed is forced to raise rates due to inflation.
Anonymous   |     |   Comment #19
Anonymous - #18, the inflation is here, actually it has been going up for the last 4 years at least 8% per year and if you include the food and energy is much higher, but the FED says is next to 0%.
Now this is a big problem for consumers because we are being lied not to get annual cost of living raises and not to receive reasonable investment rates on our money.
If FED is dismantled, the dollar must be nullified and new currency be issued because the amount treasury owes to FED is astronomical and must be paid back before such idea can become reality.
Now back to earth, Romney will replace Bernanke as he promised, with a new chairman that will report reality and not hide the true facts. Every currency on earth is design to live in a minimum inflation of 3% per year. If you disrupt that, the currency will not reflect market economy and hence the currency problems start and are very difficult to correct in future. Holding the rates next to 0%, Bernanke is destroying our wealth, because the hidden inflation works in the background non-stop but our money stagnates and is loosing value every minute of the day.
Anonymous   |     |   Comment #20
I dont know..........If this doesn't stop right away some members of a certain political party are going to get a little annoyed & read all kinds of hidden meanings into all this talk of monkeys. :)
Anonymous   |     |   Comment #21
You can say 8% inflation, you can say 20% if you want... doesn't make it true. 
Anonymous   |     |   Comment #22
Let's go over the news this week...

Romney said he won't reappoint Bernanke AND

Bernanke said he is going to do a QE# or similar move very soon (if things don't improve)

Could a quick QE3 by Bernanke be to keep his job by reelecting Obama? Just saying...

Yeah,,,QE#...stock market jumps up and TV folk saying everybody is happy and happy people reelect Obama and Obama reappoints Bernanke and we savers eat canned cat food if we are lucky!
Anonymous   |     |   Comment #23
The Feds adjust the inflation rate to any outcome they want just by adding or deleting the cost of various goods and services used in their calculations.  However there is NO DENYING the COST OF LIVING is really on the RISE!
Anonymous   |     |   Comment #25
#23............Ecactly. One needs only look at the number of times the formula to calculate the CPI has been "re-adjusted" in the last 30 years to be fully convinced that the official inflation numbers are a sack of do-do that have little relevance to reality.
Anonymous   |     |   Comment #24
Not at 8% it isn't.
Anonymous   |     |   Comment #28
Anonymous - #27, you are WRONG.
You can not put in the inflation basket, houses and TV and computers. The electronics you purchased few years back, got thrown out in the garbage as outdated and useless and the money you paid for it is never coming back in your pocket, but you replaced it with some other gadget not comparable with the old one.
Furthermore, inflation basket must contain items we buy and consume at about same level as few years back in order to get to the real inflation index and nothing should be left out.
If you bought shoes from same maker few years ago you should compare it with the same model today. Buying cheap junk from China and including it in the index just to tweak the outcome to a lower level is dishonest way to measure the inflation.
Anonymous   |     |   Comment #29
CPI is based on a basket of 80,000 goods and services that fall into 8

  • Food and beverages
  • Housing
  • Apparel
  • Transportation
  • Medical care
  • Recreation
  • Education and communication
  • Other goods and services
Anonymous   |     |   Comment #30
  • FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)
  • HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
  • APPAREL (men's shirts and sweaters, women's dresses, jewelry)
  • TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
  • MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)
  • RECREATION (televisions, toys, pets and pet products, sports equipment, admissions);
  • EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
  • OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).
There are more than 200 categories arranged into 8 major groups.
Anonymous   |     |   Comment #31
Right on #28.  Just what I was referring too when I stated how the Fed manipulates to CPI.  To #27, Electronics and other gadgets aren't required to live on.  Houses? How frequently does the average person buy a house.  The actual Cost of Living is the price of food, clothing, energy, medical, insurances, taxes, rent, education, etc.  These are the items that make up the real world COST OF LIVING!  The inflation rate on these necessities is astronomical.
Anonymous   |     |   Comment #32
That is how they arrive at the inflation number, might not be fair but never the less it is what it is.
Anonymous   |     |   Comment #33
To Anonymous - #32,

You are including the House as a part of CPI. What is wrong with you people, the median price 5 years ago here in Florida was $275 000 today is $151,000.
Now do you see how Bernanke sheltered 45% of the CPI for the last 4-5 years, even though
the price of the basic items went up through the roof.
Stop defending manipulated numbers, you look to me as educated person to spread the same lies as the FED is doing.
Anonymous   |     |   Comment #34
I'm not spreading lies I am only telling you the way the inflation numbers are arrived at. I will say one thing for sure just like I said before, my cost of living has not gone up 8% a year because I keep track of it. I will also say it is not as low as their numbers but somewhere in the middle. Hey I wish rates were up also, I like CDs and I have a lot of them and it hurts me just as much as any of you. 

If the economy was in the shape it is now even if there were no Fed manipulation of the rates, the rates would still be low.... maybe not as low as this but lower than we would like them to be.
Anonymous   |     |   Comment #35
So what's your point.  We all know how the inflation figures are arrived at.  The fact is they are so manipulated to meet the Feds desired numbers that they are as phony as a politician's promises while campaigning for office.
Anonymous   |     |   Comment #36
Don't you think the drop in interest rates have made it possible for many people to refinance their mortgages at much lower rates thereby lowering their cost of living?  
Anonymous   |     |   Comment #38
if interest rates are soooo low  and they are, then why not do something else with a portion of your portfolio...not all, but a portion?. Buy some good hi yield stocks when everybody says the world is ending.  Take mortgage reits like nly or agnc.  They yield 11 pct or more. Buy them and write calls on them.  Buy more when they get hammered?  Don't bellyache about low interest, take action. There are other options if you keep learning. 
Anonymous   |     |   Comment #40
#38...........You echoed my comments from last week. But "learning" isn't occurring here because most posters have decided that all the markets are rigged & everything that is outside their limited understanding must be a scam or exceedingly & therefore unaccepatably risky. With that type of mindset the only default action must therefore be to cry, complain & blame everyone from the annoyance in the White House to Bernanke & everyone but themselves. Then to come here & search for that extra 0.2% which will allow them to eke out 2% a year if they're lucky. Which means that they have made the decision that it's ok to see their money vanish slowly by 3-5% a year instead of taking positive action. Because in their warped sense of reality, losing that every year is in fact taking zero risk. 
Anonymous   |     |   Comment #42
#40  Are things that slow with stocks etc. that you have to spend so much time posting here and bad mouthing us?  In case you don't realize it, this IS a forum mainly about CDs!!
Anonymous   |     |   Comment #43
#42..... I don't trade in stocks. I do have some stocks in my modest 401k though, & I do invest in some mREITs with covered calls as well as some other investments. I won't go into more detail here because when I did previously everyone accused me of trying to "sell" something to you all. 

 Yes, I do realize this is deposit account CD forum. I'm just trying to figure out why you guys feel like there's anything to really talk about when the entire universe of CDs nowadays ranges between 0.05% & 2%. I suppose it must be a big decision deciding whether it's better to lose money to inflation slowly or a bit more slowly. :)  
Anonymous   |     |   Comment #44
#43  People like yourself can joke about those of us who stick with our paltry CDs but you seem to forget one thing.  If you have 10 grand in stocks and it crashes, you end up with nothing.  If I have 10 grand in CDs getting a measly 2%, I may be losing out on more interest but any time I need that principal it is just waiting for me to grab hold of it and buy something or just frame it and be grateful I am not one of the #43s who lost everything in his stocks.  Do you get my point yet?  I doubt it because people like yourself prefer to live in their own stocky world.  Have a nice day.
Anonymous   |     |   Comment #45
#44..........In the history of the stock market, when has $10k invested in a basket of stocks crashed & left the buyer with nothing? The answer is NEVER. In the history of the stock market when has a crash not been followed (at some point) with a recovery that regained the lost ground & then a lot more? The answer is NEVER. Do you get my point yet?

Now, if you're 85 years old & your remaining days are, shall we say, in short supply, then of course you shouldn't be heavily invested in stocks unless you have a large portfolio & you don't need the money to live on..............Hell. ypu may not be around for the recovery..............but for everyone else you need to be at least partially invested. But I'm sure you all know that because it's pretty obvious. Have a nice day.
Anonymous   |     |   Comment #46
#43  I happen to know someone personally who lost a fortune all at once in the "stock market"!  So I have news for you.  It happens and when it happened to me, I got out before I lost a fortune.  You are right.  It will eventually go back up but why have to chew nails waiting when all you have to do is go to your nearest bank or cu and buy yourself a nice little CD!!   BTW, I am not near 83 years old but even if I were 23 I would still feel the same way about the stock market.  Now, you have an even better day.
Anonymous   |     |   Comment #48
#46..........I know people who have made a fortune & then subsequently lost that same fortune in the market too. But they weren't even in the widest interpretation of the word, "investing". Investors know how to protect themselves from the downswings. They diversify, they use options to limit risk, etc etc. Barring a complete & utter collapse of civilization as we know it................there's no way to lose it all. 

Of course, there are always exceptions to every rule. So my news for you is that your friend may have been a complete fool. If that were in fact the case then his "misfortune" may have been the universes' way of re-balancing & restoring the order of things, whereby the fool & his money were parted. 

But I'm done with this discussion because I will never convince you & you will never convince me. I will go & have that nice afternoon now.
Anonymous   |     |   Comment #39
Because the stock markets are rigged by the big financial institutions with their program trading.  If you haven't learned that by now, you are in for a rude awakening someday.  As much as I don't want to dip into the principle of my hard earned savings, I would rather spend it and have something to show for it rather than have it vanish overnight in the stock market.  Thus the reason for following this site: DEPOSIT ACCOUNTS.
Anonymous   |     |   Comment #41
Appears to be a couple of scammers posting.  Pump and dump.  Stock traders touting equities and leaving stock market investors holding an empty bag.
Anonymous   |     |   Comment #47
The stock market still hasn't recovered from the recent crisis.  Just how long do I need to wait???
Anonymous   |     |   Comment #49
So long, #48, and as they say, don't let the door yada, yada,yada.............
Anonymous   |     |   Comment #50
I guess I started that argument when I said buy some Mortgage Reits like NLY or AGNC or other high yielding stocks but what seemed to get lost was that I said take a PORTION of your portfolio and learn to invest successfully with it.  

I never said roll the dice in a casino, I never said bet the farm on the stock market.  But when the stock market gets sold off hard, like last summer, or even late may of this year, there is MUCH LESS RISK and it is a good time to buy.  When it is rallying is NOT the time to buy.  More risk as it goes up, Less risk as it sells off.  There are hundreds of very good companies out there with dividend yields that are DOUBLE the best CD rate out there.

I just thought it was something worth mentioning.  Guess I misread that some of you are CD BIGOTS, not just investors.  Very sorry.
Anonymous   |     |   Comment #51
#50.........This site is a classic example of the polarizing effect that the internet has had on any type of discussion. Just as it is near impossible to have a discussion on any alternatives at a forum populated by stock junkies, it is the same here when anyone brings up anything as an alternative to a FDIC insured item for even a small portion of a person's portfolio. To even suggest a change in mindset is sacrilege & immediately invites accusations of "pump & dump", scams &/or what have you. Instead people come here to agree with like minded individuals & commiserate as to how bad things are & how everyone but themselves are responsible. Solutions suggested here aren't solutions at all, but just another version of the blame game or a version of sticking ones head in the sand. At best they constitute a complete lack of understanding that would be staggering to any first year economics student. It would all be rather comical if it weren't so sad.

Understandably there is a lot of anger here. After all, the self evident truth is that the unspoken social contract between responsible "savers" & the powers that be has been broken for more than a few years now & savers are in fact being punished. At the very least it's pretty clear that the rules have been changed. No doubt many lives have been altered & the future plans for many people have been jeopardized or perhaps even damaged. None of this is fair. But instead of adapting to this or learning the new rules that have been imposed, most people here continue wasting energy by attempting to lambast the people who are trying to suggest an alternative mindset. Bottom line is that dissenters like ourselves & our differring ideas are excised & the community closes into itself even more. Very sad.
Anonymous   |     |   Comment #52
You people pushing risky alternatives to insured savings and CDs are on the wrong site and forum.  What don't you understand about "DEPOSIT ACCOUNTS"? You can find hundreds of sites touting alternative financial advice for your soap boxes. 

Ken, with this site, provides an excellent resource for those of us who are adverse to any risk taking where a loss of our principal would be devastating.  As many of us have learned from the past, financial markets, no matter how well they are doing or how much diversification one might have, can turn overnight or even faster creating severe financial losses for individual investors.
Anonymous   |     |   Comment #53
#52............So you think that locking up your money for 5 or 7 years & losing the paltry 2% interest & an additional 3-5% to inflation every year is preservation of capital? Really?
Anonymous   |     |   Comment #59
#53, yes I do.  With a properly laddered CD approach as suggested on the site years ago, I have NO need for your unwanted financial advice.
Anonymous   |     |   Comment #60
#59.........Wow, all those uber long term CDs that people like yourself always allude to must be coming due by now. Or were these all 8 year CDs that you guys all loaded up on ? Yes, yes, yes, I do know how laddering works, but it's not magic guys.................it just delays the inevitable.
Anonymous   |     |   Comment #64
#60      Delay the inevitable is good sometimes, no?
Anonymous   |     |   Comment #65
#64........Sure it is, but  if the inevitable is 2% long term then one needs a plan B, don't you agree?
Anonymous   |     |   Comment #54
#52   You should have an open mind and look for other ideas, you never know when you might find something useful. 

btw, no kidding, stocks fluctuate?  
Anonymous   |     |   Comment #55
Maybe this is really the "Misery loves company" group and we CD holders just like being around our own kind who think like us.  We didn't spend most of our lives trying to save just to blow a huge chunck of it away just because we are facing dismal interest rates.  If we were smart and made sure we saved enough for the "bad" times, we can survive this inspite of the 2% rates.  I just would appreciate it if the "stockies" folks would not feel it their duty to "save" us.  Remember "wisdom comes with age" and I think a lot of us on here are seniors and that means "we" are the ones with the "wisdom".   So quit yaking about how dumb we are for our actions and start paying more attention to your own.

Anonymous   |     |   Comment #58
#55........I see you're playing the we know better because we're older card.  Nice retort LOL
Anonymous   |     |   Comment #56
Well at least we know you speak for everybody on this blog, thanks for making that clear.

FYI, this blog at times talks about stocks and other investments.
Anonymous   |     |   Comment #57
I agree, I have 75% of my money in CDs and other fixed income but I also have some in stocks. I guess it depends on how old you are and how much money you have. I have my stock money in an index fund...VTI is the symbol.
Anonymous   |     |   Comment #61
Yes, I do know there are no 8 year CDs
Anonymous   |     |   Comment #62
All my 5% and 6% CDs are coming due now and over the next 6 months and I laddering and have been for a long time.

Anonymous   |     |   Comment #63
I always have a 5 to 7 year ladder and always bought when one CD came due but as of now I will just go short term, maybe 1 year for a while and see what happens.
Anonymous   |     |   Comment #66
My plan B was 2% wouldn't be the long term. oopsie

I would definitely hope for very nice pullback in the market and then I would invest more as of right now the timing stinks.
Anonymous   |     |   Comment #67
#66...........Yeah, 2% is obscene.  I agree, I haven't added to any stock positions since summer 2011.
Anonymous   |     |   Comment #68
#67    2% is only obscene if one did not save enough to survive on it.  If you just went by what those financial experts told you to save then your goose is cooked!  Some times it pays to be the "odd ball" and listen to your own instincts instead of someone who has a piece of paper making him/her think they know more than we do.   Economists are like weathermen.  One change in the wind and everything they think is going to happen is wrong. 
Anonymous   |     |   Comment #69
#68..........I see your point & that is rather commendable.  For me personally, 2% or 6% or any number in between is just a theortetical number because I don't have any money whatsoever in CDs. Haven't in quite a few years & haven't had a problem outperforming 6% for 10 years now (even including the financial crises). I would elaborate, but then I'd be accused of trying to "sell" something to everyone. 

Of course I give almost zero thought to the concept of retirement in the traditional sense of the expression. So in this case it really is to each his own.
Anonymous   |     |   Comment #70
Absolutely right on, post #68!

A lot of my co-workers retired from a fortune 500 company as millionaires.  Then put their profit sharing and IRA accounts into the hands of so called professional "Financial Advisers".  Most of them lost everything but their shirts and many were forced by to work wherever they could find a job.  Fortunately, thank God, I did not follow the herd. So you could call also call me one of the "odd ball" winners. 
Anonymous   |     |   Comment #71
#70   That was their mistake, just own an index fund spy or vti and the hell with the so called professionals.
Anonymous   |     |   Comment #72
#71  Index Funds are NOT foolproof but they can be full of "fools" who risks years of savings to jump into them because they read all this stuff from people like yourself.  So you believe in stocks. Great for you! Now why don't you start up a "StocksONline" so all your cohorts can join you in stocksville.  Just please make sure you stay away from seniors who don't have years left to remake any money they lose on your ventures!  I think most of the members in this forum were smart enough to amass what they need to swim through this 2% era and too smart to risk losing a penny of it at this stage.
Anonymous   |     |   Comment #74
#71......The part I don't get is why you people fell that it needs to be all or nothing. So let me ask this. Does anyone here truthfully have 100% of their portfolio in FDIC guaranteed deposits, be they CDs or whatever? Honestly now.
Anonymous   |     |   Comment #73
I can't help but notice how you like to speak for everybody, ever think about running for president?

Buy the index when it is down genius not when it has run like it has.
Anonymous   |     |   Comment #75
Of course it should read "feel" not fell.
Anonymous   |     |   Comment #76
Yes.  Accept for a few shares of stock my insurance company issued to me many years ago because I held a small policy with them.  Not significant enough to be part of any financial portfolio.

I see a few trolls are keeping this topic alive.  Oh well, good for passing the time, but not very enlightening.
Anonymous   |     |   Comment #77
#76.......Well I'm surprised, amused & would be outraged if it was my money. But it's not, so.............

Ok so do you want to be enlightened or do you want everyone to stay on topic? Because I can't do both. The topic of CDs can't be enlightening with rates at these levels. It really can't. But I'll try. 

For every million dollars you have locked up in a 2% CD, you are actually losing around $20k-30k per annum in purchasing power. This is based on a real inflation rate of 4-5% annually. Lock it up for 5 years & you're essentially tossing $100k to $150k in purchasing power out the window. Of course if you actually believe the government figures then you're only losing around $50k over 5 years.  But I know this is hardly that enlightening since anyone doing basic math can figure it out. I also know from previous posts that some people here have prepared themselves through years of savings so that they can comfortably relieve themselves of this amount annually. :) It almost sounds like they like doing it. :)
Anonymous   |     |   Comment #78
I come to this blog almost daily and have been doing so for a long time, over 70 comments is more than I can remember on any article... I may be wrong.

Definitely age has everything to do with it, I am sure there are a lot of people on here that are not the age you think they are.... I'm 56 and I've been coming to this blog for many years.
Anonymous   |     |   Comment #79
With people as scared of the stock market as you sound we probably have a big bull market coming soon, I just hope we get one more big big drop before it starts.
Anonymous   |     |   Comment #80
Since I have been so vocal about CDs, I feel it is only fair to share that they are about the only thing I ever used except for a mutual fund which was the only thing I ended up losing money on.  I got out of it and never returned.  I did buy some bonds for a while but always ended back prefering CDs.   BTW, for the poster who thinks I speak for everyone, it is obvious you haven't been around too long.  These people don't need anyone to speak for them.  I am a poster here because I learn from a lot of their posts.  BTW, is anyone on here invested in Bond Funds?  The guy at my bank is pushing these like crazy but I have always been told buying the seperate bonds instead of Funds is the way to go if one is interested in this.  
Anonymous   |     |   Comment #81
If you buy a bond fund and rates go up your nav will drop, meaning the price of your bond fund. If you buy an individual bond you know what you will get back as long as you wait to maturity, if you sell early it will be whatever the market pays you. I don't like bond funds because we are at such low rates and the high quality individual bonds don't pay squat. I have a high yield bond fund that pays me just under 7% but it has gone up in price since I bought it. I also have reit fund that pays 11% but I wouldn't recommend that to anyone here.

If you buy the index when it is down, for example when the market crashed in 2009 I bought the VTIs for $33 and $34, they are now $72 and that doesn't include any of the dividends it has paid out. The problem with most people is they panic and sell when they should be buying.
Anonymous   |     |   Comment #84
#81............Very true. 

#82.........Even truer.

#83.........And Vanguard  has some service called "Admiral" that even lowers fees more if you have a certain amount minimum............which for the life of me I can't recall the amount off hand. And no, I'm not trying to sell anything. Just FYI.
Anonymous   |     |   Comment #82
When buying anything from the bank make sure and find out what it will cost you. High expenses or they will even charge commissions, the only thing I would ever buy from a bank is a CD.
Anonymous   |     |   Comment #83
If you are interested in bond funds or even bonds, fidelity and vanguard.... they both have very low expenses generally speaking.
Anonymous   |     |   Comment #85
sorry I ****ed some people off.  but I thought some alternatives were in order.  still like those mortgage reits.  catch them x-divident they frequently sell off since the div is so huge...sell off way more than the dividend...good time to buy...sometimes it doesnt sell off tho...
Anonymous   |     |   Comment #86
I don't believe #85 poster, that you are really sorry.  Otherwise you would not still be babbling on.

One improvement that Ken could make to his site and this forum is make people register in order to participate.  Then it would be much easier to block posters that use such crude languish as you do.  It's not appropriate here and only goes to indicate your immaturity.
Anonymous   |     |   Comment #87
I have posted exactly 3 times on this thread,  Not babbling on.
Anonymous   |     |   Comment #88
Why should any of us be sorry. You guys should thank us for trying to bring a little bit of fresh air to this place............. & for at least trying to open some eyes around here. Believe me, it's been a real mission impossible trying to have an intelligent discussion with the throngs of the brain dead that permeate this place.
Anonymous   |     |   Comment #89
88 comments, for such a boring topic there sure are a lot of comments. ****ed off is crude language?
Anonymous   |     |   Comment #90
lighten up people, seems very stuffy in here.
Anonymous   |     |   Comment #92
#90.....Yes, the air in here is similar to what I'd imagine you'd find in a convalescent home. Well I guess that makes a lot of sense. 

#91......Yes, a sign of intelligence is being able to hold at least 2 diametrically opposed ideas in your mind simultaneously & be able to argue each one convincingly. I see little sign of that characteristic with most of the narrow minded posters here.............most of which can't even argue 1 idea convincingly. 
Anonymous   |     |   Comment #93
#92  I think it is a sign of great intelligence to be able to decide what one wants in life and not waste time trying to argue about something one doesn't  want and not trying to force your opinions on others. I resent your posting negatively about nursing homes because it sounds like you are either already in one or will be soon.  I think you need to change your attitude about the place you will probably be spending your "olden" years in.  Take your meds and go hug your stocks and hope they will pay for all your days there so my tax dollars won't have to!  Now I will ignore you and go hug my CDs!
Anonymous   |     |   Comment #91
Brain dead???  Just because certain posters on a forum called "DepositsOnline" try to convince "outsiders" that they are not interested in what they are spouting, that makes "them" brain dead??  Personally, I think if anyone is having problems with their brains it's the ones who can't seem to understand what they are reading.   It really must be hard to sell stocks etc. since people like yourself (including that guy at my bank who is determined to "save" me from my terrible financial course) are almost frightening in their determination to convince us they are right and we are wrong.  If you continue the name calling because we disagree with you, you may end up getting DELETED for abusive behavior.    If you can't post without your name calling go find another forum to harass! 
Anonymous   |     |   Comment #94
Why would you resent MY comments on nursing homes if Im the one you think is  heading into one. More likely, you resent it because it is in your future.

I've got some stocks, mREITs & 3 fully paid for commercial properties rented out buddy. My "olden" years, 30 years from now, will be quite comfortable thank you. You on the other hand can only hope & pray that CD rates don't go down to 1%.