Link - Click on "Earn $100 Extra a year" on the right side of the page for the terms on their special
I am looking into doing a 3 year CD with Providian Bank. They are currently running a special - an extra 0.2% on top of their current rates for a 3 year or longer term with a minimum deposit of $51,000. Their current rate for a 3 year CD is 3.9%, making it 4.1% with the special (which ends 10/15).
It's my understanding that this is a solid financial institution, is FDIC insured, and has "normal" EWD fees (3 months of interest for <1 yr, 6 months for >1 year CD's).
Does anyone know of a better rate for a 3 year CD at another bank, preferably without an application fee or hoops to jump through to get the rate?
Thanks
veryhungry
Senior Member - 2K
posted: Sep. 27, 2004 @ 7:38p
just to stress, its for $50,000 +... Locked in for three years!
sterlingfox
Tired Member
posted: Sep. 27, 2004 @ 8:41p
veryhungry said: just to stress, its for $50,000 +... Locked in for three years!
Yes, I am well aware of this, or I would otherwise not be considering this
tooshy
Frivolous Member
posted: Sep. 27, 2004 @ 10:19p
Search 'CD'. It would be more useful to post in that thread keeping CD rates for comparison sake all in one thread.
The downside of creating a single jumbo CD is the big disincentive you have created should the need to break it arise. Having many smaller CDs will afford you the opportunity to break only the amount you need.
The yield curve is going from a slope to flat, so perhaps this is an indication that long term CD rates are not going to climb anytime soon. In fact, I worry about it going lower. Bonds are overpriced, stocks may be pressured for a period with rising oil and commodity prices, along with higher short term rates. What else is there?
I had deleted the part in my post where I said it wasn't a killer rate...although I still consider it not worth the extra fractional percent if you have to deposit 51K in a single CD. Believe me, having that large a CD is a big disincentive when you want to break it. I waited on my CD a few extra months and lost out on Penfed's never to return good rates. You never know when and where the incentives will be.
For a smaller sized 10K CD, if you are inclined to open a savings/checking with direct deposit for an additional .25%, you can earn a total rate of 4.25% for a 3yr CD at Keypoint Credit Union. Or 4% without direct deposit.
sterlingfox
Tired Member
posted: Sep. 28, 2004 @ 3:04p
tooshy said: I had deleted the part in my post where I said it wasn't a killer rate...although I still consider it not worth the extra fractional percent if you have to deposit 51K in a single CD. Believe me, having that large a CD is a big disincentive when you want to break it. I waited on my CD a few extra months and lost out on Penfed's never to return good rates. You never know when and where the incentives will be.
For a smaller sized 10K CD, if you are inclined to open a savings/checking with direct deposit for an additional .25%, you can earn a total rate of 4.25% for a 3yr CD at Keypoint Credit Union. Or 4% without direct deposit.
Yes, I knew about the Keypoint offer, but with a $35 upfront application fee and having to open up a checking account (which I don't need) plus having to set up direct deposit and not knowing what horrible EWD fees they might charge, it's simply not worth the risk and expense for the extra 0.15% interest.
Maybe I would be better off doing 5 years at 4.7% and taking the 6 month EWD hit in case rates go up significantly before the 5 years is up?
RagingBull
Ancient Member
posted: Sep. 28, 2004 @ 3:23p
keypoint will waive the fee for you. just ask them to.
sterlingfox
Tired Member
posted: Sep. 28, 2004 @ 8:51p
RagingBull said: keypoint will waive the fee for you. just ask them to.
Do you happen to know what the early withdrawal fees are? And does the checking account have to remain open for all 3 years to get the 0.25% bonus? I still think it's not worth the hassle
RagingBull
Ancient Member
posted: Sep. 29, 2004 @ 2:18a
Unfortunately, don't know withdraw fees. Just do paypal for direct deposit. they accept that
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