November 2nd, 2009

Banks Maintain Top CD Rates for This Week Starting November 2nd, 2009

Economic data for the past week showed an economy that’s not quite back on track yet. There was some improvement shown in the third quarter figures, but it appears that the growth could be attributed to the government’s cash for clunkers program, which is now over, leaving consumer spending in the doldrums again.

Contemplating on this data brings to mind a scary post-Halloween thought. What if all deposit interest rates, whether savings or CD accounts, will continue to drop until all yields will be less than 1%? There used to be a time when short-term CDs and savings rates were somewhere within the 5% to 6% range, but that time seems like a long-forgotten dream now. These days, we’d be happy to find a savings yield that breached the 1.50% mark, and short-term CD rates are falling faster than you could say “economic recovery.”

Yet while all this point to a bleak outlook, if one does some digging around, savers can actually still find some better-than-average CD rates to tide them over until economic conditions already favor a rise in interest rates. For this week, few changes were made, but at least there were no rate cuts seen from the top CD rates, and there is even a rate hike for 2-year CDs.

top-CD-rates-November-2-2009

6-month CDs

Offering a yield of 1.76% for 6-month CDs, Ascencia is still one of your best bets for short-term CDs. If you are on the lookout for even shorter placement options than 6-month CDs, EverBank’s 3-month money market rate of 2.51% is a great option, as is the 3-month savings account promo of New Jersey-based 1^st Constitution Bank, and its online division, 1^st Constitution Direct, giving a rate of 2.00%.

12-month CDs

Just very recently, UmbrellaBank.com hiked up its 12-month rate to 2.20% APY, surpassing Amboy Direct’s 2.10% yield, to grab the top spot for the best 1-year CD rate. If you can spare your funds for a few months longer than one year, the 16-month CD of Dollar Savings Direct offers a more-than-decent investment option with a rate offer of 2.25% APY.

24-month, 36-month, 48-month and 60-month CDs

For the longer term CDs, Hudson City Savings Bank continues to lord it over other much bigger banks. With branches all over New Jersey, New York, and Connecticut, the bank is giving the highest 2-year, 3-year, 4-year and 5-year CDs with APYs at 2.50%, 3.00%, 3.25%, and 3.50% respectively. For the 36-month CD, online bank Flagstar Direct offers the same top CD rate.

For more complete data, visit our CD rates page and use the comprehensive database of bank CD offerings to find the best CD rates available in your location.

About the banks

UmbrellaBank.com

UmbrellaBank.com is the Internet banking division of New South Federal Savings Bank. New South Federal is a member of the Collateral Family of Companies, which has been in the financial services industry since 1933. UmbrellaBank.com offers a wide range of banking products to meet all of your financial needs. Our products are available with online access so you can do your banking when it is convenient for you, 24 hours a day, 7 days a week.