Just FYI:

Capital One has lowered the minimum on their regular CDs from $10,000 to $5,000.

They have also introduced a third type of CD that has a lower initial rate than the regular CD, but whose interest rate can be increased once during its term at your request. Also a $5,000 minimum.

Capital One Regular CDs.

Capital One No Regrets CDs.

Thanks for the thread. You might want to include 6 months penfed CD rate of 1.4% .

Stupid question, but I had to ask:

For the Capital One 1 month CD, if I reinvest every month @0.85%, my annual interest earnings will be over 10%. So I'm assuming there must be a fee to place your money in a CD, otherwise re-investing every month is sure-fire way to earn over 10% per year...right??


holla

Not sure if anyone is interested, but DCU has a special 7 month Cd at 2.25 % APY. I got one to help with early laddering.

DCU

should have added $2500 min.

labboypro said:I've got about $20k at ING in regular savings earning 2.1%. I looked at CDs and decided there was no real upside for the nominal rate increase... but it locked my money down for minimum 1 year. Just didn't seem worth it these days.

If you put the money in a 5-year CD at 4.5% with 6-month early withdrawl penalty, you'll get 0% after 6 months and 2.25% after 1 year. At 1 year, that's about the same as regular savings, allowing some rate increases over the next year. However, after 1 year, the CD earns 4.5% a year, and you can take the money out at any time. The 6-month penalty is already "paid for" in the first year.

c3 said:If you put the money in a 5-year CD at 4.5% with 6-month early withdrawl penalty, you'll get 0% after 6 months and 2.25% after 1 year. At 1 year, that's about the same as regular savings, allowing some rate increases over the next year. However, after 1 year, the CD earns 4.5% a year, and you can take the money out at any time. The 6-month penalty is already "paid for" in the first year.

ING's early withdrawal penalty is worse than the standard 6-month penalty. From the website:

As with any CD, should you decide to withdraw your money before the end of the term, certain penalties would apply. The penalty is effectively one-half (½) of all interest accrued on your deposit since the account was opened or renewed. In most cases this rate is still higher than most banks are offering on savings accounts.

I like their CD rates, but that early withdrawal penalty is rough.

Costco members can get a slightly higher rate from Capital One (and Costco Executive Members get a $25 bonus). Costco page (click on CDs and MM acct link)

They only add about 0.05% for CDs, but for the MM acct it bumps the APY from the current 1.75% to 2.11%.

i see dcu has a 3.00% APY with direct deposit on their 11 month CD. Seems great to me esp. for laddering.

Effective Aug 7, 2004, ING just tanked all their CD's:

Term APY Interest Rate
Effective Date
1 Year 2.50% 2.50% 08/07/04
2 Years 2.875% 2.875% 08/07/04
3 Years 3.35% 3.35% 08/07/04
4 Years 3.90% 3.90% 08/07/04
5 Years 4.00% 4.00% 08/07/04

Weak...

USAA Rate

Fixed 30 Months 3.07 3.11 Min Dep $1,000
Fixed 36 Months 3.30 3.35 Min Dep $1,000
Fixed 48 Months 3.69 3.75 Min Dep $1,000
Fixed 60 Months 4.46 4.55 Min Dep $1,000
Fixed 84 Months 4.50 4.59 Min Dep $1,000
Fixed 36 Months ARC* 3.05 3.09 Min Dep $1,000
Fixed 48 Months ARC* 3.44 3.49 Min Dep $1,000
Fixed 60 Months ARC* 4.21 4.29 Min Dep $1,000
Fixed 84 Months ARC* 4.25 4.33 Min Dep $1,000

*Rate will be adjusted to new, higher rate one time. Maximum adjustable-rate CD increase is 2%

a) Three hundred sixty five (365) days interest on the amount withdrawn on certificates of deposit with terms of seven years or more.
b) One hundred eighty (180) days interest on the amount withdrawn on certificates of deposit with terms greater than one year to less than seven years.
c) Ninety (90) days interest on the amount withdrawn on certificates of deposit with terms of one year or less.

So, I think its 5-year fixed is good. Do you think so?