August 23, 2008 |
Your bank wants your money and may be willing to pay a decent rate for it. After falling for most of the last year, average rates on certificates of deposit have been picking up since the end of April. Some banks -- including brand-name institutions with locations in Southern California -- are offering more than 4% on a one-year CD. Nationwide, the average annual yield on one-year CDs fell to 1.92% in April, down from 3.75% in August 2007. "During the past 12 months, savers really took it on the chin," said Greg McBride at Bankrate.
August 7, 2008 |
Seeking to shore up its finances, federal regulators have ordered Vineyard National Bank of Corona to stop accepting so-called hot-money deposits that are considered too risky for the money-losing bank. Vineyard is among the growing group of Southland lenders battered by a wave of housing defaults, including mortgage giants Countrywide Financial Corp., which was acquired by Bank of America in January, and IndyMac Bancorp, which failed last month and was taken over by regulators.
March 11, 2007 |
Ron Lapinskas would like to offer a few words of caution for people who invest in certificates of deposit: Don't let those CDs automatically roll over, he said. If you do, it could cost you. A retired salesman in Parrish, Fla., Lapinskas started investing in CDs more than a decade ago when he began to manage his ill father's portfolio. Unsophisticated about such investments, he allowed the bank to automatically roll maturing CDs into similar new CDs.
September 11, 2005 |
Anyone who thinks that certificates of deposit are boring hasn't seen the WorldCurrency CDs offered by Jacksonville, Fla.-based EverBank Financial Corp. CDs are the essence of dull and risk-free investing: Buy a certificate for a set period and earn the fixed interest rate until it matures. But not EverBank's CDs. These certificates, sold over the Internet to customers across the country, can soar in value one year and plunge the next -- much like the stock market or the value of the dollar.
June 5, 2005 |
As he gets closer to retirement, Joe Bock has been pulling money out of stocks and putting it in certificates of deposit. That's turned the 62-year-old electrical engineer from Los Angeles into an avid rate-shopper, willing to send his money to banks in Texas or Virginia to grab an extra tenth of a percentage point in yield. "Why not?" he asked. "It adds up over the years. Even a 0.1% difference is $500 over a five-year period" on a $100,000 investment.
May 11, 2001 |
Stock investors are hoping the Federal Reserve cuts interest rates again next week, but owners of certificates of deposit view the impending Fed meeting with a sense of dread. And no wonder. The Fed's four rate cuts already this year have pushed shorter-term savings yields sharply lower. Average yields on one-year CDs have plummeted, falling from 5.71% at the end of 2000 to 4.18% this week.