Featured 1-Year CD Rates

Popular Posts

Featured Accounts

CD Rates Summary July 19, 2016

POSTED ON BY

CD Rates Summary July 19, 2016

Next week, on July 26 and 27, the fifth FOMC meeting of this year is scheduled to happen. It is widely expected that the Fed will once again hold rates steady. Soon after last month’s Brexit vote, it seemed like the chance of a Fed rate hike this year had fallen to near zero. Things have changed, and it now looks like the Brexit fears were overblown. According to this Wall Street Journal article:

Federal Reserve officials are looking more confidently toward an interest-rate increase before year-end, possibly as early as September, now that financial markets have stabilized after Britain’s vote to leave the European Union and the economy shows signs of picking up.

One factor that could convince the Fed to hold steady for the rest of the year is inflation. The inflation index that the Fed focuses on, core PCE, continues to be below their target of 2%. The doves on the Fed will use this to push their case to hold steady, and as we have seen for the last decade, they have the most influence at the Fed. Economist Tim Duy had this to say in his Fed Watch blog:

when the Fed faces a mixed message, they tend to move slower than faster. So given the low core-PCE environment, the doves will likely remain in control

At least there’s real talk of at least one Fed rate hike before the end of the year. The Fed funds future contracts are showing an improved chance of a rate hike. The implied probability for a December rate hike has increased from 39% to 47% in the last week. Most Treasury yields are also up from last week. The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 0.29% same as last week
  • 6-month: 0.44% up from 0.40% last week
  • 2--year: 0.70% up from 0.69% last week
  • 5--year: 1.12% up from 1.10% last week
  • 10-year: 1.56% up from 1.53% last week
  • 30-year: 2.27% up from 2.24% last week

Fed funds futures' probability of at least one additional rate hike by:

  • Sep 2016: 18% same as last week
  • Dec 2016: 47% up from 39% last week
  • Feb 2017: 49% up from 40% last week

Certificate of Deposit Rates

In a positive sign for CD rate trends, Vanguard’s top brokered CD rates for terms of 5 and 7 years went up in the last two weeks. However, direct CD rates seem to be following the brokered CD rate cuts that we saw a couple of weeks ago. Several of the top direct CD rates, especially on the longer terms, have fallen.

Some of the institutions with rate cuts include Alliant Credit Union, XCEL Federal Credit Union, Veridian Credit Union, GS Bank and Barclays.

Even though Veridian Credit Union lowered the rates on its 25-month CD specials, it increased the rates on its 15-month CD specials (1.65% APY for $100K minimum and 1.50% APY for $1K minimum). This is the best nationally available deal for terms around 18 months.

It’s now not easy to find 5-year CD rates much above 2%. The highest 5-year CD rate at an internet bank is now 2.05% APY at Synchrony Bank. State Bank of India has a higher rate of 2.27% APY, but I don’t consider this an internet bank.

Credit unions offer the best 5-year CD rates. The best 5-year CD rate continues to be at Northwest Federal Credit union (2.47% APY), but this is a relationship rate with a $250K minimum. Without a large minimum requirement, the best rates are around 2.30% APY. Three easy access credit unions are in this group: Melrose (2.32% APY 60-month), Mountain America (2.30% APY 60-month) and Fort Knox Federal (2.30% APY 59-month). Concerns over Melrose’s financial problems and the past problem at Fort Knox Federal makes Mountain America the best of the three in my opinion.

Finally, here’s my usual note about long-term CDs with mild early withdrawal penalties.

An alternative to short-term CDs is long-term CDs that have mild early withdrawal penalties. I include the effective yields of a few 5-year CDs when closed early in the tables below. All of these have competitive 5-year CD rates and an early withdrawal penalty of 6 months of interest or less. This makes them pretty good deals even when closed early. The latest addition is XCEL Federal Credit Union which is offering a 2.00% APY 5-year CD with an early withdrawal penalty of 180 days of interest. If you want to compare the effective yields of other CDs after the early withdrawal penalties, please refer to our CD early withdrawal penalty calculator.

The risks of planning for early withdrawals of long-term CDs were highlighted by the deposit agreement change at Ally. The risks have also been seen at credit unions which have raised the early withdrawal penalties on existing CDs. I have more details in this blog post.

Savings & Checking Account Rates

In the past I’ve covered savings and checking account rate changes in another weekly summary post. Each week I would publish one post with a recap of savings and checking account rate changes and another post with a recap of CD rate changes. Since there aren’t a lot of rate changes, I’m now alternating these posts. This week I’ll just publish this CD summary. Next week I’ll just publish the savings/checking summary. For both summaries I’ll include the same economic overview. You can always get the latest rates for savings/checking accounts and CDs by using our rate tables. Just use the menu on top.

Here’s the link to last week’s savings/checking recap.

Yields Accurate as of July 19, 2016

Under 1-Year CD Rates

Quorum Federal Credit Union1.40% 10-month Term Account See review
The Palladian PrivateBank1.30% Savings Account promo 6-month rate ($10K min/$500K max)See review
Dime Savings Bank1.10% Dime Direct Money Market (1 year rate guarantee) See review
Northeast Bank1.10% Pearl Money Market Promo (6-month rate guarantee) See review
SafeAmerica Credit Union1.06% 6-month CD Special Easy membership See review
MySavingsDirect1.05% 6-month My Term CD
Alostar Bank of Commerce1.01% 6-month CD Internet bank

Noteworthy Local Deals - Under 1-Year CDs

Popular Community Bank1.26% Optimum Money Market Special (6-month rate guarantee)New York, possibly Northern New Jersey See review
Sterling Bank & Trust1.25% MMA Promo (6-month rate guarantee)Southern California See review
Oritani Bank1.25% 9-month Loyalty CDNorthern New Jersey
University of Iowa Community Credit Union1.20% ($250k), 1.20% ($100k), 1.00% ($1k) 7-month CD Special48 Iowa counties, 4 Illinois counties See review
Synergy Bank, SSB1.20% 10-month CD Special ($10k min)Dallas/Fort Worth area
Oritani Bank1.15% 5-month Loyalty CDNorthern New Jersey
Capital One Bank1.10% Essential Savings 6-month guaranteeCT, DC, DE, LA, MD, NJ, NY, TX, and VA See review
LOMTO Federal Credit Union1.10% 6-month CDParts of New York City
EastBank, N.A.1.10% 9-month CDNYC metro area See review

1-Year CD Rates

SafeAmerica Credit Union1.40% 14-month CD Special Easy membership See review
Community Choice Credit Union (MI)1.27% 11-month CD Special Easy membership See review
Melrose Credit Union1.26% 1-year Share Certificate
E-LOAN.com1.26% ($10k) 1-year CD
Colorado Federal Savings Bank1.25% 1-year CDInternet bank
Live Oak Bank1.25% 1-year CDInternet bank See review
iGObanking1.25% 12-month iGOCD
Sallie Mae Bank1.25% 12-month CD
Synchrony Bank1.25% 12-month CD
Quorum Federal Credit Union1.25% 13-month Term Savings CD Easy membership See review

Noteworthy Local Deals - 1-Year CDs

AmeriCU1.55% ($100k) 12-month Jumbo Partner Certificate9 Upstate New York Counties See review
General Electric Credit Union1.55% ($100k) 1-year Jumbo CDSouthwest Ohio
Freedom Federal Credit Union1.50% 52-week Jumbo Certificate ($25k)Harford County, Maryland See review
Idaho Central Credit Union1.50% 12-month Promo CDIdaho
Pioneer Federal Credit Union1.50% 13-month CD Special13 southwestern Idaho counties
We Florida Financial1.46% ($10k) 1-year Jumbo IRA Certificate46 Florida counties See review
AmeriCU1.45% 12-23 month Partner Certificate9 Upstate New York Counties See review
TEXAR Federal Credit Union1.45% 12-month Online Share Certificate4 Texas and 1 Arkansas counties See review
Bank of the Valley1.41% 11-month CD SpecialNortheast Nebraska See review
South Shore Bank1.40% 14-month Rewards CDMassachusetts
Bank of the Ozarks1.36% 13-month CD Special 9 Dallas-Fort Worth branches See review
TEXAR Federal Credit Union1.35% 12-month Share Certificate4 Texas and 1 Arkansas counties See review
American Eagle Bank of Chicago1.35% SUPER Saver 13-month Add-On CD SpecialChicago metro area

18-month CD Rates

Veridian Credit Union1.65% 15-month Jumbo CD ($100k)Easy membership See review
USALLIANCE Financial1.51% 15-month CD Special ($100k max)Easy membership
Veridian Credit Union1.50% 15-month CD SpecialEasy membership See review
Lake Michigan Credit Union1.40% 18-month CD SpecialEasy membership
Pacific National Bank1.37% 18-month CDInternetSee review
First Internet Bank1.36% 18-month CDInternet bank See review
EBSB Direct1.35% 16-month EBSB CDInternet bank See review
Quorum Federal Credit Union1.35% 17-month Term Savings CD Easy membership See review
Live Oak Bank1.35% 18-month CDInternet bank See review
E-LOAN.com1.35% ($10K) 18-month CD

Noteworthy Local Deals - 18-Month CDs

Premier Credit Union2.00% 20-month Certificate Special8 Iowa counties See review
Horizon Credit Union1.71% 18-month Special CD (w/checking)Washington,8 Idaho and 14 Montana counties See review
University of Iowa Community Credit Union1.70% ($250k), 1.60% ($100k), 1.50% ($1k) 17-month CD Special48 Iowa counties, 4 Illinois counties See review
Lincoln 1st Bank1.65% 18-month Variable Rate CDNorthern New Jersey See review
Farmers State Bank1.57% 15-month CD3 NE Iowa counties
Warsaw Federal1.52% 18-month CDCincinnnati, Ohio See review
Red River Credit Union1.51% 15-month Summer Special CD13 Texas and 11 Arkansas counties See review
ConnectOne Bank1.50% 15-month CDNorthern NJ and NYC See review
BenchMark Bank1.50% 15-month CDColumbus, Ohio area See review
Savings Bank of Danbury1.50% 15-month Bump Up CDWestern Connecticut See review
MidWestOne Bank1.50% ($10k) 15-month Relationship Bump Up CD Special34 Iowa and 10 Illinois counties See review
Sunmark Federal Credit Union1.50% 18-month CDCapital Region, Upstate New York
Walpole Co-operative Bank1.50% 20-month CD SpecialWalpole, Massachusetts area See review

2-Year CD Rates

Veridian Credit Union1.85% 25-month Jumbo CD ($100k min)Easy membership
Veridian Credit Union1.70% 25-month Special CDEasy membership
XCEL Federal Credit Union1.51% (2.00% 60-month CD closed after 2 years)Easy membership
Pacific National Bank1.50% 24-month CDInternetSee review
Quorum Federal Credit Union1.50% 24-month Term Savings Account See review
Service Credit Union1.50% 27-month Certificate SpecialSee review - Limited membership
Garden Savings Federal Credit Union1.48% (1.97% 5-year Share Certificate closed after 2 years)Easy membership
Live Oak Bank1.45% 2-year CDInternet bank See review
Colorado Savings Bank1.45% 2-year CD
Fort Knox Federal Credit Union1.40% 23-month CD SpecialEasy membership

Noteworthy Local Deals - 2-Year CDs

Farmers State Bank1.80% 19-month CD3 NE Iowa counties
BenchMark Bank1.75% 2-year CDColumbus, Ohio area See review
Dupaco Community Credit Union1.75% 25-month Term Share Certificate Special33 Iowa, 5 Illinois, and 4 Wisconsin counties
Manatee Community Federal Credit Union1.75% ($10k) 24-month CD Manatee County, Florida See review
Idaho Central Credit Union1.75% 24-month Promo CDIdaho
Cedar Falls Community Credit Union1.75% 25-month Special Share Certificate7 Iowa counties See review
Pioneer Federal Credit Union1.75% 25-month CD Special13 southwestern Idaho counties
University of Kentucky Federal Credit Union1.60% ($100k) 2-year Jumbo CDU of KY relationship, greater Lexington area See review
The First National Bank of Santa Fe1.51% 25-month Promo CDNew Mexico and Colorado See review
First Federal Credit Union1.50% 25-month CD SpecialLinn County, Iowa See review
Green Bank, N.A.1.50% 29-month CD SpecialAustin, Dallas, and Houston, TX; Lousiville, KY See review
Leominster Credit Union1.45% 27-month Term Share CD Special6 Massachusetts counties See review

3-Year CD Rates

Wilshire State Bank2.28% 3-year Rainbow Installment Savings account w/auto transfers, $100K maxSee review
Veridian Credit Union1.90% 39-month Jumbo CD ($100k)Easy membership See review
Hughes Federal Credit Union1.87% ($99k), 1.76% ($50k), 1.66% ($1k) 36-month CDEasy membership
RTN Federal Credit Union1.85% 37-month CD SpecialEasy membership See review
Connexus Credit Union1.75% 3-year CD w/active chk
Veridian Credit Union1.75% 39-month Special CDEasy membership See review
SafeAmerica Credit Union1.71% 30-month CD Special Easy membership See review
USALLIANCE Financial1.71% 35-month CD SpecialEasy membership
XCEL Federal Credit Union1.68% (2.00% 60-month CD closed after 3 years)Easy membership
Melrose Credit Union1.66% 3-year Share Certificate
Garden Savings Federal Credit Union1.65% (1.97% 5-year Share Certificate closed after 3 years)Easy membership
Velocity Credit Union1.61% 33-month Step-Up IRA CertificateEasy membership See review

Noteworthy Local Deals - 3-Year CDs

San Patricio County Teachers Federal Credit Union2.25% 3-year CDSan Patricio County, TX See review
CFCU Community Credit Union2.10% ($100k), 1.75% ($25k), 1.50% ($10k) 33-month Celebration Certificate Special Tompkins and Cortland Counties, NY See review
1st Gateway Credit Union2.05% 40-month CD SpecialEastern Iowa, Western Illinois
Spokane Teachers Credit Union2.02% 30-month Premium CDWashington State, 8 northern Idaho counties See review
Community Financial Services Bank2.02% 33-month CD Special KY, IN, IL, MO, and TN See review
VITAL Federal Credit Union2.01% 36-month CDSpartanburg County, South Carolina See review
Vibrant Credit Union2.00% 33-month CD SpecialIowa, Illinois Quad Cities area
1st United Services Credit Union2.00% 36-month Fixed Share CertificateAlameda and Contra Costa Counties, CA
Gulf Coast Credit Union1.95% 36-month Share CertificateJim, Nueces, and San Patricio Counties, TX
Collins Community Credit Union1.91% ($250k), 1.86% ($100k), 1.81% APY ($50k) 30-month CD Special38 eastern Iowa counties

4-Year CD Rates

Melrose Credit Union2.02% 4-year CD
Bay State Savings Bank2.00% 48-month CD
NASA Federal Credit Union2.00% 49-month CD Special
SelfHelp Credit Union1.81% 48-month CD
Nationwide Bank1.81% ($100k), 1.76% ($500) 4-year CD
Discover Bank1.76% 4-year CD
XCEL Federal Credit Union1.76% (2.00% 60-month CD closed after 4 years)Easy membership
CIT Bank1.75% ($100k), 1.65% ($1k), 4-year CD
American Heritage Federal Credit Union1.72% 47-month Bump-Up CDEasy membership See review
Alliant Credit Union1.70% ($25k), 1.65% ($1k) 48-month CD

Noteworthy Local Deals - 4-Year CDs

Institution for Savings2.50% ($250k) 4-year Money Market CD (also requires $250K in MMA)Parts of Massachusetts
Deere Employees Credit Union2.30% 48-month Share CertificateEmployees and retirees of Deere & Company See review
Pelican State Credit Union2.19% 48-month CDRapides Parish, Louisiana
Jefferson Financial Credit Union2.17% ($10k) 48-month Share CertificateJefferson Parish, LA
Federal Employees Credit Union2.15% ($100k) 48-month CDFederal employees and retirees See review for limitations
Beaumont Community Credit Union2.12% 48-month Share CertificateJefferson County, TX
Security Savings Bank2.06% 48-month CDTri-state area of SD, IA, and MN
Member One Credit Union2.05% 48-month CDVirginia
Founders Federal Credit Union2.02% 48-month Share CertificateSouth Carolina
Red Rocks Credit Union2.02% 48-month Share CertificateColorado

5-Year CD Rates

Northwest Federal Credit Union2.47% ($250k) 5-year Share Certificate (w/bonus points)Easy membership requirements See review
Melrose Credit Union2.32% 5-year CD
Mountain America Credit Union2.30% 60-month CD
State Bank of India2.27% 5-year CD
Fort Knox Federal Credit Union2.20% 59-month CD SpecialEasy membership
Signal Financial Credit Union2.16% 60-month Share CertificateEasy membership requirements See review
Latino Credit Union2.10% 60-month Share Term CertificateEasy membership requirements See review
RiverLand Federal Credit Union2.10% 60-month CertificateEasy membership requirements See review
Kinecta Federal Credit Union2.10% ($100k) 5-Year Jumbo CDEasy membership requirements See review
Synchrony Bank2.05% ($25K), 2.00% ($2K) 5-year CD
AgFed Credit Union2.05% 60-month Share CertificateSee review
XCEL Federal Credit Union2.00% 60-month CDEasy membership
KS StateBank2.00% 5-year Online CDSee review
Colorado Federal Savings Bank2.00% 5-year CD
The Vanguard Group Brokered CD1.60% 5-year non-callable CDIssued by Wells Fargo Bank

Noteworthy Local Deals - 5-Year CDs

General Electric Credit Union2.75% 5-year CDSouthwest Ohio
Deere Employees Credit Union2.65% 60-month Share CertificateEmployees and retirees of Deere & Company See review
IH Mississippi Valley Credit Union2.63% 60-month CD Quad Cities area, IL and IA
Bank of Utica2.50% 5-year CDUtica, NY area
Northwoods Credit Union2.42% ($100k+) 60-month Certificate Carlton, Pine, and St. Louis Counties, MN See review
Collins Community Credit Union2.33% ($250k), 2.28% ($100k), 2.22% APY ($50k) 60-month CD Special38 eastern Iowa counties
Granite Credit Union2.32% 60-month CertificateSalt Lake County, Utah See review
Educational Systems Federal Credit Union2.30% 60-month Jumbo Star Member CDMaryland
University Federal Credit Union2.30% 60-month CDSalt Lake County, Utah See review
Founders Federal Credit Union2.27% 60-month Share CertificateSouth Carolina
Community Financial Services Bank2.27% 66-month CD Special KY, IN, IL, MO, and TN See review
Space City Credit Union2.26% 5-year Certificate SpecialHouston, TX See review

Over 5-Year CD Rates

Andrews Federal Credit Union3.00% 84-month IRA Certificate See review
Apple Federal Credit Union2.60% 120-month CD
Navy Federal Credit Union2.35% ($100k), 2.30% ($20k), 2.25% ($1k) 7-year CDLimited membership
Discover Bank2.30% 10-year CD
Apple Federal Credit Union2.25% 84-month CD
Navy Federal Credit Union2.25% ($100k), 2.20% ($20k), 2.15% ($1k) 6-year CDLimited membership
Northrop Grumman Federal Credit Union2.14% ($40k min) 84-month Bonus Term CDEasy membership
Discover Bank2.10% 7-year CD
The Vanguard Group Brokered CD2.10% 10-year non-callable CDIssued by GS Bank
The Vanguard Group Brokered CD1.85% 7-year non-callable CDIssued by GS Bank

Noteworthy Local Deals - Over 5-year CDs

Sharefax Credit Union2.68% ($15k) 80-month Gold Share CertificateSouthwestern Ohio
Indiana Members Credit Union2.53% 84-month CD17 central Indiana counties
Financial Center First Credit Union2.50% 84-month Share Certificate10 central Indiana Counties (greater Indianapolis)
Frick Tri-County Federal Credit Union2.50% 8-year CDParts of Western PA
San Antonio Federal Credit Union2.34% 10-year CDSan Antonio, TX
Fairfax County Federal Credit Union2.30% ($100k) 72-month Share CertificateFairfax County, VA See review
First National Bank (PA)2.25% 10-year CD Special ($10k)PA, MD, OH, WV
MidFirst Direct2.25% 10-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
MCS Bank2.22% 120-month CDParts of Central PA (aka Mifflin County Savings Bank
Gesa Credit Union2.20% 7-year CDWashington State
MCS Bank2.12% 108-month CDParts of Central PA (aka Mifflin County Savings Bank
Ent Credit Union2.10% 84-month Certificate9 Colorado counties See review
PeoplesChoice Credit Union2.02% 84-month CDYork and Cumberland Counties, Maine

CDs Removed Due To Low Rates Or Expired Specials

CDs Removed, No Longer Available - Nationwide

Alden Credit Union1.26% 12-month CD Special Easy membership See review

CDs Removed, No Longer Available - Local

GCS Credit Union2.25% 75-day Share Certificate 18 southern Illinois counties See review
Community 1st CU1.20% 9-month CD Special57 southern Iowa counties and 8 northeast Missouri counties
Liberty Bank1.50% 18-month CD SpecialConnecticut See review
Community 1st CU1.50% 19-month CD Special57 southern Iowa counties and 8 northeast Missouri counties
EvaBank1.51% 15-month CD SpecialNorthern and Central Alabama See review
Florida Community Bank1.40% 9-month CD (w/checking)Florida See review
Florida Community Bank1.30% 9-month CDFlorida See review
Florida Community Bank1.20% 6-month Personal MMA ($10k min, 4 month rate guarantee) Florida See review

CDs Removed, Rate Too Low - National

My e-BAnC by BAC Florida Bank1.24% 12-month CD Internet bank
My e-BAnC by BAC Florida Bank1.24% ($100k) 12-month Jumbo CD Internet bank
Chartway Federal Credit Union1.10% ($25k) 18-23 month CDEasy membership
Alliant Credit Union1.24% (1.85% 5-year Jumbo Share CD closed after 18 months)Easy membership
XCEL Federal Credit Union1.34% (2.00% 60-month CD closed after 18 months)Easy membership
Alliant Credit Union1.39% (1.85% 5-year Jumbo Share CD closed after 2 years)Easy membership
Nationwide Bank1.25% ($100k), 1.20% ($500) 24-month CD
Alliant Credit Union1.55% (1.85% 5-year Jumbo Share CD closed after 3 years)Easy membership
XCEL Federal Credit Union1.50% 48-month CDEasy membership
American Heritage Federal Credit Union1.91% 58-month Bump-Up CDEasy membership See review
GS Bank1.85% 6-year CD
Fort Knox Federal Credit Union1.20% 14-month CD SpecialEasy membership

CDs Removed, Rate Too Low - Local

Investar Bank1.00% 6-month CertificateLouisiana See review
Institution for Savings1.50% 40-month CDMassachusetts' North Shore region
Warsaw Federal2.05% 5-year CDGreater Cincinnati, Ohio area See review

Post Publication Edits

7/20/16: EvaBank 15-month CD Special no longer available.

7/20/16: Florida Community Bank 9-month CD and 6-month Personal MMA no longer available.

7/20/16: Signal Financial Credit Union 60-month Share Certificate added.

7/21/16: Fort Knox Federal Credit Union 14-month CD Special removed following rate drop.

7/21/16: Fort Knox Federal Credit Union 23-month CD Special rate lowered.

7/21/16: Alden Credit Union 12-month CD Special no longer available.

7/21/16: Fort Knox Federal Credit Union 59-month CD Special rate lowered.

7/21/16: Latino Credit Union 60-month Share Term Certificate added.

7/22/16: Leominster Credit Union 27-month Term Share CD Special rate lowered.

7/22/16: Savings Bank of Danbury 15-month Bump Up CD added.

7/22/16: Popular Community Bank 1.26% Optimum Money Market Special (6-month rate guarantee) added.

Comments
Anonymous
Anonymous   |     |   Comment #1
There will be no rates increases for foreseeable future, most of us can predict that, it is not the domestic 
numbers that matter anymore, it is the global Geo-political  climate too. Yellen speaks enthusiastically all the time and that is the code word for the wall street not to expect 
anything of that sort.
Ed
Ed (anonymous)   |     |   Comment #2
No rate increase until after the election. Obama had a little talk with Yellen awhile back to make sure she understood. No tanking the stock market until Obama is out of office.
Anonymous
Anonymous   |     |   Comment #3
Uncertainty on the future will lead the to no rate increases. This is the weakest Fed leadership in its history.
Anonymous
Anonymous   |     |   Comment #4
Brexit is the latest excuse not to raise rates......and there will be plenty more. Just to give you an idea of how bad rates are and no hope in future......I bought a callable(yes.....callable!!) brokered CD a two months back. It's callable every 3 months.....Rate is 2.5% on 12 years.  Well......even the market price of it is now well above the principal! I never thought that could happen. Shows you how desperate the demand is for "decent" rates......if you can call 2.5% decent.
Anonymous
Anonymous   |     |   Comment #5
The Feds will always have an excuse not to raise rates. 

The major financial institutions and the stock market  have gotten so accustom to zero or near zero rates, it is like shooting heroin to them.  The whole country is on some kind of drugs these days!
Anonymous
Anonymous   |     |   Comment #6
"The Fed owes us a rate increase" is apparently everyone's perspective here, - followed by the typical whining and cynicism over them not meeting their obligations.  It becomes tiresome.
#7 - This comment has been removed for violating our comment policy.
#9 - This comment has been removed for violating our comment policy.
DCGuy
DCGuy (anonymous)   |     |   Comment #10
The way things are going now, it was better to have lived in retirement before 2009.  With the ever increasing numbers of newly retired from the baby boomer generation, it will only add more to the 60-plus group.  Same applies to college education. It was better to have gone to college before the 1980s when tuition costs were reasonable, but later education funding from the government was greatly reduced and led to big spikes in tuition.
Anonymous
Anonymous   |     |   Comment #14
No one "owes us a rate increase". Painting everyone with a broad paint brush doesn't add anything to the discussion. Never has. Most of the posts tell it like it is. That the Fed won't be raising rates in the future for various reasons. The Fed is what is truly "tiresome".
Anonymous
Anonymous   |     |   Comment #15
Don't really understand why my comment was deleted or how it violated the comment policy.  I merely asked # 6 a question.

However, since someone felt it did, I won't repeat the question.  Life goes on...........
#21 - This comment has been removed for violating our comment policy.
Anonymous
Anonymous   |     |   Comment #11
It just keeps getting worse and worse for us retirees and savers. The FED will not raise interest rates again unless Trump gets elected. If Hillary gets in and doubles the debt again in order to give even more government handouts They(Hillary + FED) will take rates negative and cause the biggest run on the banks since the great depression. Now I ask you if it cost you money every year to keep your money in the bank would you leave it there? Or would you buy a fireproof safe, gold, more stocks etc.?
Anonymous
Anonymous   |     |   Comment #12
There won't be a run on banks because that's not the way it works in 2016. Many accounts already earn 0% interest, which is a negative return when inflation is included in the equation, and people simply don't care. Out of sight, out of mind.
Anonymous
Anonymous   |     |   Comment #22
So you would let your money sit in a bank that is charging you 1-2% for leaving it there? You must be a liberal with that type of logic. If interest rates go negative I'm pulling my money out of the banks except for a checking account for paying bills. I will buy more monthly dividend paying stocks and put some cash in a fireproof safe at home. This will certainly cause a run on the banks if they start charging us interest and fees for keeping our money in there. The inflation argument is moot because I am keeping pace with the FED's inflation numbers with a 3% and 2.5% CD and Wilshire banks rainbow savings account 2.28% APY and my checking account even pays 1.5% plus I average 8% in monthly dividends.
Anonymous
Anonymous   |     |   Comment #13
I know my savings loses it's value to inflation every year.  The interest earned is less than the real "cost of living", but I still leave most of it in the banks and CUs. 

Now if they were to charge me to leave it with them, I would withdraw it.  However, I would not buy gold and definitely would  not buy stocks with it.  Buying stocks would be playing right into the big financial institutions' hands. When they get enough  of us suckered in, they sell through computerized trades and the little guy ends up holding an empty bag.  History does repeat itself over and over again, especially in the rigged markets.
Anonymous
Anonymous   |     |   Comment #16
#13.  You definitely have this one figured out.  
Anonymous
Anonymous   |     |   Comment #23
Impressed you have it all figured out so precisely. 
Anonymous
Anonymous   |     |   Comment #17
Here we go again. And right before the FED meeting starts, out comes a rigged negative economic report for the FED to use to justify a no rate increase decision.
ben
ben (anonymous)   |     |   Comment #18
fed needs to raise rates to get the economy going again.
Anonymous
Anonymous   |     |   Comment #19
The FED tried to stimulate the economy by lowering rates. Raising rates is used by the FED to slow inflation. In any case, central bank manipulation is planting the seeds of capital destruction on a scale most cannot imagine. Savers don't understand there's little need for their saved capital when digital capital can be effortlessly created by central banks. International monetary control will one day rule our lives, if it doesn't already.
Anonymous
Anonymous   |     |   Comment #20
they need to raise rates to stimulate the economy.  This will create confidence and increased spending.  They don't however get it or they don't want to get it.