Credit union
The trouble with this strategy is that you'dprobably earn more money shaking out your sofa cushions than you'd getfrom the average bank certificate of deposit. Since the Federal Reservestarted cutting interest rates in September, CD yields have fallenthrough the floor. The average rate for a one-year CD was 1.97% lastweek, according to Bankrate.com. The average rate for a five-year CDwas a feeble 2.77%.
Some banks, though, are offering higher rates,so it pays to shop around. While you're looking, here's something elseto consider: credit unions. Rates on credit union CDs, often calledshare certificates, are often higher than rates on bank CDs. Severalcredit unions are offering 4% or higher for one-year sharecertificates, according to Bankrate.com.
Comments
No comments yet. Be first!