Tuesday, April 1, 2008

Best CD Rate Survey Update

From the Highest CD Rates Survey at forbestadvice.com, the best CD rate is 5.00% at Capital One Bank for Terms of 7 and 10 years.

Vanguard Prime Money Market Fund currently pays 2.96% but there is no FDIC.

The best CD rate under 1 year is 3.75% at Wachovia Bank.

The 3-month treasury bill currently pays 1.37%, the 5-yr treasury note pays 2.51%, the 10-year treasury bond pays 3.44% and the 30-year T-Bond pays 4.32%.

CDs are also paying better rates than iBonds which currently pay 4.28% (I-Bond Details)

Below are some more rates and terms.

6 Months
3.75% at Corus Bank

1 Year
4.15% at Indymac Bank & 4.05% @ Countrywide Bank

3 years
4.00% at GMAC Bank & 3.97% @ Ascencia

5 years
4.30% at Capital One Bank & 4.25% @ PenFed CU

7 and 10 years
5.00% at Capital One Bank

Be careful when you go to your bank and ask for their best rate. They will often use that as an excuse to sell you an annuity that sounds good on the surface, but is far more profitable for them due to the higher fees.

Make sure you read the Article: World Savings - Beware of Annuities