Bank CD Rates

Since this current financial recession started, investors have been looking for the best bank CD rates. August 2009 is no different. One thing is for sure that there are many sites claiming a number as the national average for a specific CD term. I have found that the national average varies from site to site all other things being equal. One thing that has become apparent is that each site has a CD offer just above what is quoted as the national average, very peculiar.

I do not claim to know what the national average is precisely but the area appears to be for a 6 month CD around 1%, a 3 year CD around 2% and for a 5 year CD around 2.5%. If anyone gives you something more specific, it could be an advertising scheme, so please be on your guard.

There are some financial institutions that make great offers but there is usually a catch to them, like the 4%, 18 month CD from Citibank. The CD is your deposit on a secured credit card and this must be held for the full 18 months to receive the interest. With the almost $30 annual service fee, a depositor must invest a minimum of $1500 to just break even. So you see one can make money on this deal, but it will take a larger deposit than the minimum of $250 as described to do so.

There are some bank CD rates worth investigating, just look for the catch when doing so. The best short term deal for August 2009 so far could be from Danvers Bank on a 3 month CD with 2% interest and a minimum of $500 deposit. For those wanting a longer term CD try the Melrose Credit Union. Presently they are offering a 5 year CD with 3.91% with a minimum of $5000 deposit.

You must look, be prepared and watch out for the best bank CD rates. August 2009 could be the time for you to invest, do it wisely.