Will Emigrant Direct and ING Direct kill short-term CDs?
One thing I am noticing recently is how uncompetitive the banks’ short-term certificates of deposits are. A major bank in my area is offering the short-term CDs with 1.30%, 2.36%, 3.00% and 3.15% yields with 3.25% APY offered for a 12-month CD. A local bank in my area is not even advertising most of their short-term CDs, although the special they have right now - 3.90% for 9-month CD, beats the ING Direct and Emigrant Direct rates, if you’re up to locking your money.
While short-term CDs were a nice way of getting the best return on investment, if you weren’t ready for long-term fixed income commitment, the rates of 3.00% from ING Direct andf 3.25% from Emigrant Direct are pretty much killing them. I have a choice of lower yield and locking my money for 6-9 months with bank CD, or putting them up in a high-yield savings account with pretty much immediate access to the money any time I need it (save the overhead costs of few days that it takes for ETF to get through).
June 29th, 2005 at 10:10 am #Rich
Alex, I noticed same, and with a very little amount of work to open an online account at either ING Direct and Emigrant Direct
banks, you can save more money and still have a cash account. I once read somewhere that the general public is missing out on billions of dollars each year in simple investment opportunities like these, by not moving their cash into higher yeilding accounts.
June 29th, 2005 at 1:39 pm #Syndicated by Wealthy Blogger @ Alex Moskalyuk Online
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