I would like to open up a CD account and I am unsure of what a good rate is. I only want to invest between 3-$500 and for possibly a 6 month term. Is this unreasonable?
Also, I am looking to open a savings account that will also accrue interest and I am having trouble finding high rates. B of A offered me one that requires a $300 minimum and the interest rate is .02% APY. Isn't this ridiculously low? I spoke with an associate and she told me it is compounded daily and paid out every month. So if I deposited $300 would I be accruing only 60 cents per YEAR??? I hope I am misunderstanding these rates.
Please advise!
2007-09-27 09:50:22 · 5 answers · asked by Tiff B 1 in Business & Finance ➔ Investing
ingdirect.com 4.30% APY
emigrantdirect.com 5.05% APY
hsbcdirect.com 4.50% APY
Any of these offer a good interest rate with no fees, restrictions, or minimums. I personally use Emigrant Direct and have been very satisfied with them.
2007-09-27 10:08:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Emigrantdirect.com is an online saving account with no fees, no minimums, and a 5.2% APR. It is very easy and safe. As far as a CD, with $500, you'd be better off putting the money in the savings account. CD rates increase with the amount you are depositing and you won't get a better rate than the saving account with 500 dollars. You are right, that .02% APR is garbage! There are other online savings accounts too that offer more than "brick and morter" banks interest rates, but Emigrantdirect is the best I've found. The CD with $500 isn't worth it.
2007-09-27 09:55:23 · answer #2 · answered by cashmaker81 6 · 0⤊ 0⤋
The other folks have answered how the interest is calculated. I would offer another bit of advice. You should research and open a high-yield savings account. These accounts pay anywhere from 4-5% interest on deposited money. A couple of examples are HSBCDirect, INGDirect, EmigrantDirect. With these internet banks, you open a savings account that's linked to your existing checking account (you can stick with your regular bank for checking so you don't have to change checks, debit cards, etc). You can transfer funds back and forth between you're regular bank and your high-yield savings account. Your $1000 would get you approximately $4.17 per month compared to the $.41 another poster wrote....much better return on your money.
2016-05-20 01:32:17 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Everbank has 6% for 3 months. There are other online accounts offering as much a 8%. Check this website:
http://bankdeals.blogspot.com/
PenFed has a 6% CD for 3 years!
2007-09-27 11:17:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
ING and Citi's eSavings are between 4 and 5 % .
Their CDs are over 5% .
http://home.ingdirect.com/
https://web.da-us.citibank.com/cgi-bin/citifi/portal/ps/detail.do?BV_UseBVCookie=yes&BS_Id=BankingOverview
>
2007-09-27 09:58:25 · answer #5 · answered by kate 7 · 0⤊ 0⤋