I just had a CD due, and will need the money in August for school, therefore a 6mth is out. Anyone know of any decent 3 mth CDs?

3/4/2009 12:25:14 PM

This is the best I see in 60 seconds worth of internet searching:
http://www.gmacbank.com/todays-rates/cd-rates.html
2.05% APY

3/4/2009 12:30:02 PM

check bankrate.com

3/4/2009 12:36:31 PM

What is the benefit of using a CD over a long term savings account?

3/4/2009 1:50:27 PM

mbr of SECU? Money market is 2.47 rate (2.5 yield)

3/4/2009 1:52:16 PM

^^What do you mean by a long term savings account? A savings account you don't have plans on touching for a long time, or is this some new type of account I haven't heard of?

A savings account, where you can take your money out at any time, will typically have a much lower interest rate than a CD, where you cannot withdraw (without penalty) your money for a predetermined, set amount of time. The longer the predetermined time, the greater the interest rate.

^This. And I wish I had locked in some money on their 5% CDs a few years ago.

[Edited on March 4, 2009 at 2:17 PM. Reason : -]

3/4/2009 2:15:28 PM

Savings accounts can change their interest rates at any time, so you could be getting a lower rate than when you started.

For example I have an ingdirect account that accrued 4.00% APY about a year or so ago. It is now earning me 1.85%.

CD's allow you to lock in a fixed rate for a fixed period of time, but you must commit to the full advertised length otherwise you will be penalized for early withdrawal of funds.

If you are looking for long term locked rates, then a CD is a good way to go. CD's range typically from 30 Days to >5 years and I would say in general the longer amount of time you commit, the higher the interest rate you are offered, but this isn't always the case. You should shop around.

If you need money soon but want to earn some interest from it, then I recommend a savings account. You may not get the higher interest rate, but it is much more liquid than a CD and there are no penalties for withdrawal.


At this moment in time, if you can find something greater than 2.50% I suggest putting your money in there. 6 months ago that number would have been 4%.

Don't forget to check for FDIC coverage!

There are a few banks that will offer 10% interest but are not insured. It's very risky.

3/4/2009 2:32:20 PM

^Good points. Just keep in mind that when you lock that interest rate in it can swing against you.

6 months ago locking in a 4-5% interest rate on a CD would now be considered a good thing.

I'd be hesitant to lock in a rate with a CD while the rates are really low. Let's say you lock in a rate of 3% today and the economy rebounds in a year and the interest rate in a money market account gets back up to 4%. Meanwhile, if the CD term hasn't expired, you are still locked in at 3%. Of course this is only a bad scenario if you actually expect the interest rates to go up on the short term.

Maybe 6 months from now people will look at the 2-3% interest rates and think "I wish I had locked in at that point". Who knows.

3/4/2009 2:43:08 PM

^^ good explination of a CD.

I had it with NCSECU but its only 6mth at lowest and its 2.5%. Would rather not get it in money market. This will all be gone in August. its 5k.

3/5/2009 12:15:54 AM

I've never done the CD thing before. Is there a usual minimum deposit? Like if I have an extra $500 laying around that I don't plan on doing anything with for a while, is it worth throwing it into a 6-month deal?

3/5/2009 12:37:20 AM

The minimum deposit will vary from bank to bank. The SECU has a minimum of $250 to open a CD of any length.

I don't know how reliable this site is, but I'll throw this out there for people to peruse:

http://www.bankaholic.com/cd-rates/

They list the rates, terms, minimum opening deposits, etc.

3/5/2009 7:27:44 AM

and you can always ladder your CDs at varying lengths if you have the cash to do so... makes it a mix between a savings/CDs

3/5/2009 9:55:45 AM

^^ Correct. Minimum deposits vary from institution, and sometimes, amount of cash deposited. Several banks offer greater interest rate "deals" based on the amount of cash you deposit into a CD


I saw one bank the other day that was offering 0.85% for deposits <$10,000, and deposits over $10,000 were offering 1.85%. This was for a savings account, though.


Typical minimum deposits for CD's are from about $500-$1000, although you will see some that are $10,000 as well. I have heard of banks asking for minimum deposits of $100,000 and greater before, but this is for rich people and doesn't apply to us.

3/5/2009 10:43:29 AM

You'd have to use the account to get the interest, but if you can use the card 12 times a month, open a green checking account at coastal federal @ 4.01%.

3/5/2009 1:03:28 PM

higher amts normally give you bigger interest rates. jbtilley, thanks for the link. ill look into it.

3/6/2009 10:56:16 AM

yeah i saw on article on the consumerist about laddering CDs, it looked interesting

[Edited on March 6, 2009 at 3:23 PM. Reason : f]

3/6/2009 3:22:40 PM

i just can't imagine locking up my money in a CD for ANY period of time right now at these rates. interest rates can only go up from here. i would just try to find a decent money market that is yielding 2-2.5% and stick it in there

3/6/2009 7:07:24 PM

There is absolutely no point in getting a 3 month CD; just put your money into savings or Money Market savings for 3 months.

For most banks your APY on something as short as a 3 or 6 month CD is so low that unless your are fucking Warren Buffet with 1,000,000 you are depositing today than there is minimal opportunity cost. You might as well keep the liquidity of a savings/MMA.
Right now in fact i think the interest rate at the NC SECU for 6, 12, 18 month CD's are all the same as their MMA interest rate. So unless your putting money away for 2 years or more there is no point. I would almost say there is no point to getting a long CD anyway as interest rates have no room to move but up so a year from now your money may be locked in a 2.75% 24 month CD when interest on a MMA has moved back up to 3%.

Hopefully, you are a member of a credit union as otherwise your savings rate is absolute GARBAGE. I honestly do not even understand how commercial banks compete with credit unions.

3/6/2009 8:31:50 PM

this thread makes me lolz!

3/7/2009 8:35:09 AM

^^ there are reasons for a 3 month CD, but at the rates offered, it's getting harder and harder to come up with one.


but a perfect reason would be if you had money now, but needed it in 3 months, and a 3 month CD was offering a higher rate than a savings or money market.


My grandmother passed away last year and left us with an estate that needed to be filed with the IRS. There was a large amount of cash that we didn't want to spend because it was going to be taxed, so they purchased 6 month CD's. Bingo.

3/7/2009 10:22:24 AM

green checking
green checking
green checking

coastal fcu

3/7/2009 11:09:02 AM