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Certificates Of Deposit

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BUSINESS
August 23, 2008 | Kathy M. Kristof, Times Staff Writer
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.
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BUSINESS
March 15, 2013 | Liz Weston, Money Talk
Dear Liz: Help! We've just received devastating news from our accountant that we owe around $11,000 to the IRS and the state for 2012 taxes. The reason for the huge bill is that we cleaned out my husband's IRA to pay for our son's college expenses. My husband is almost 65 and working part time after being laid off, and I'm 61 with a full-time job. What is the best way to pay this bill? Here are the options I can think of: 1) Cash out my three-month emergency certificate of deposit of $12,000 that I've saved to cover expenses in case I get laid off. 2)
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BUSINESS
June 5, 2011 | Liz Weston, Money Talk
Dear Liz: I am 22, single, work full time and have no outstanding debts. I have $18,000 in a savings account and am contributing 15% of my paycheck to a 401(k). How do I invest my savings to get a better return? I've been looking into certificates of deposit, money market accounts, IRAs and Roth IRAs, but don't know enough to start. Answer: Let's first get clear on some terminology. CDs and money markets are types of investments, while IRAs and Roth IRAs are types of accounts — specifically, they're retirement accounts.
BUSINESS
October 11, 1989 | James S. Granelli, Times staff writer
Standard & Poor's Corp., a national securities rating firm, has upgraded its evaluation of certificates of deposit at Downey Savings & Loan and two industrial revenue bonds totaling $6 million that are secured by loan agreements with the Newport Beach institution. The higher rating reflects Downey's "conservative asset mix, excellent asset quality, strong capital levels and good profitability," S & P said. The bonds are issued by two Arizona counties.
BUSINESS
July 12, 1995 | From American Banker
A continued slowdown in the growth of certificates of deposit has some bankers forecasting trouble ahead. A midyear look by a handful of bank executives last week suggests that the growth slide that began in April may accelerate in the near term if the Federal Reserve Board cuts rates further. Indeed, during the last week of June consumer CDs grew at an annual rate of only 6.24%, according to the latest Fed data.
BUSINESS
May 12, 2000 | LIZ PULLIAM WESTON
Things to do this weekend with your money Rising interest rates have translated into higher yields on certificates of deposit, money-market funds and even checking accounts. 4 Today: Taxable money markets now average 5.48%, while tax-free funds average 4.4%, according to IMoneyNet Inc., a financial data research firm. To shop for a higher-yielding fund, visit http://www.imoneynet.com. 4 Saturday: Certificate of deposit yields are at five-year highs.
BUSINESS
October 15, 1998 | LIZ PULLIAM, TIMES STAFF WRITER
With banks reluctant to significantly cut the rates they pay on certificates of deposit in recent weeks, CDs have become a better buy for many conservative investors than comparable U.S. Treasury securities. But CDs' advantage could quickly disappear if Treasury rates continue to rise or if some banks decide to break from the pack and begin chopping rates. Treasury yields plunged to record lows early this month, but have recovered a bit recently and have been subject to sharp swings.
BUSINESS
June 25, 2009 | Becky Yerak, Yerak writes for the Chicago Tribune.
The Federal Deposit Insurance Corp. says it has been getting questions about firms advertising high-rate insured CDs. The ads feature FDIC logos or promises that they are FDIC insured, when in fact the CDs are but the firms themselves aren't FDIC-insured banks. The agency advises consumers to look closely at the fine print, where a firm might reveal that the business or some of its products aren't insured.
BUSINESS
August 23, 2008 | Kathy M. Kristof, Times Staff Writer
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.
BUSINESS
August 7, 2008 | E. Scott Reckard, Times Staff Writer
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.
BUSINESS
March 11, 2007 | Kathy M. Kristof, Times Staff Writer
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.
BUSINESS
September 11, 2005 | Kathy M. Kristof, Times Staff Writer
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.
BUSINESS
June 5, 2005 | Kathy M. Kristof, Times Staff Writer
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.
BUSINESS
August 15, 1991 | LESLIE HELM, TIMES STAFF WRITER
The Industrial Bank of Japan may be the key victim of a multibillion-dollar fraud involving a restaurateur and stock speculator who claims to get her financial tips from God. The IBJ admitted Wednesday that it loaned large sums of money to Nui Onoue, 61, who was arrested Tuesday on suspicion of using $2.48 billion worth of phony deposit certificates as collateral to borrow money. A credit officer from Toyo Shinkin Bank in Osaka who forged the certificates for Onoue was also arrested Tuesday.
BUSINESS
May 11, 2001 | KATHY M. KRISTOF, TIMES STAFF WRITER
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.
BUSINESS
February 1, 2001 | LIZ PULLIAM WESTON, TIMES STAFF WRITER
Wednesday's rate cut by the Federal Reserve is a win-lose situation for consumers. It should make borrowing for things like homes and cars cheaper, but will further reduce the return from safe investments such as certificates of deposit and money market accounts. But as the aftermath of the Fed's rate cut on Jan. 3 showed, it can take awhile for central bank moves to be reflected on a credit card or bank statement.
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