Best Rates for CDs

"Highest CD Rate Survey + Current US Treasury Rates"

Current Table at => Very Best CD Rates

Term as of 7/10/10	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Vanguard Daily	0.09%	Vanguard Prime Money Market Fund
6 Month CD	1.23%	Aurora Bank
1 Year CD	1.55%	Sallie Mae Bank & 1.50%@ Discover Bank
1 Yr US Treasury	0.29%	US Treasury Rate Quote
18 - Month CD	1.71%	Aurora Bank
2 Year CD	2.00%	Stonebridge Bank & Bank of Internet USA
3 Year CD	2.50%	newDominionDIRECT
4 Year CD	2.92%	Bank of Internet USA
5 Year CD	3.06%	Astoria Federal Savings Bank
5 Yr US Treasury	1.83%	US Treasury Rate Quote
7 Year CD	3.51%	Pentagon Federal CU aka PenFed
10 Year CD	3.50%	Discover Bank
10 Yr US Treasury	3.04%	US Treasury Rate Quote

Vanguard Money Market Rates shown for Reference 

Full CD Rate Table at  Very Best CD Rates

How many of you remember getting double digit interest rates on money market funds and CD accounts in the 1980s?

Currently, year-over-year CPI inflation is at 2.0% yet the top 2-YR CD term of the five largest banks is only 1.50% at Chase Bank! We are losing money, when adjusted for inflation, by holding it in safe CDs, savings accounts and especially US Treasuries!!

I heard on CNBC-TV that banks have over one trillion US dollars above what they need to be "well capitalized" yet they don't lend it out because they are afraid they won't get it paid back. I suspect there is more to it such as they still have bad mortgages on their books that will require that capital if we get a double dip recession so they are being safe. Since they have all this money, they have no incentive to pay high interest rates to attract more deposits.

Bank	CD Rates - APY in % as of 7/9/10 for $10,001
	6- Mo	12 Mo	2-Yrs	3-Yrs	5-Yrs
Bank of America (BAC)	0.35	0.80 promo	1.10	1.75	2.50
JP Morgan Chase (JPM) Bought WaMu	0.50 7-mo	1.01 13-mo	1.50	2.00	2.50
Citibank (C)	0.35	0.75	1.01	1.50	2.25
Wells Fargo Bank (WFC) Bought Wachovia	0.15	0.30	1.40 27 Mo	1.90 35 Mo	2.65% 58 Mo
HSBC Bank North America - Branch Rates	0.10	1.01	0.75	0.75	1.70
HSBC Online Rates	0.10	1.01	0.75	NA	NA
US Treasury Rates	0.19	0.28	0.62	1.01	1.84

See the full survey at CD Rates at Largest US Banks

It is amazing to me how CD rates have worked their way down to nearly nothing since I graduated UC Berkeley in 1979.

Check out these historical CD rate graphs

1-Month CD Daily Chart Click charts to see full size images

6-Month CD Daily Chart

Related information:

• US Treasury Rates at a Glance
  
• World Stock Markets at a Glance

With rates so low, banks will try to sell you their annuity products. Make sure you read my article: Beware of Annuities

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Bernie Madoff Vs Social Security

Al W posted this observation on our facebook "Investing for the Long Term" forum:

Under the guise of "Stuff you can't make up", kirk posted a parody about ObamaCare.

There is more to financial burden that just health care. How about Social Security?

Subject: Bernie Madoff Vs Social Security

Why did Bernie Madoff go to prison? To make it simple, he talked people into investing with him. Trouble was, he didn't invest their money. As time rolled on, he simply took the money from the new investors to pay off the old investors. Finally there were too many old investors and not enough money from new investors coming in to keep the payments going. Next thing you know, Madoff is one of the most hated men in America and he is off to jail.

Some of you know this… but not enough of you do. Madoff did to his investors what the government has been doing to us for over 60 years with Social Security. There is no meaningful difference between the two schemes… except that one was operated by a private individual who is now in jail, and the other is operated by politicians who enjoy perks, privileges and status in spite of their actions.

Do you need a comparison? Well here's a nifty little Table.

BERNIE MADOFF:Takes money from investors with the promise that the money will be invested and made available to them later.
.
SOCIAL SECURITY: Takes money from wage earners with the promise that the money will be invested in a "Trust Fund" and made available later.
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BERNIE MADOFF: Instead of investing the money, Madoff spends it on nice homes in the Hamptons and yachts.
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SOCIAL SECURITY: Instead of depositing money in a Trust Fund, the politicians use it for general spending and vote buying.
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BERNIE MADOFF: When the time comes to pay the investors back, Madoff simply uses some of the new funds from newer investors to pay back the older investors.
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SOCIAL SECURITY: When benefits for older investors become due, the politicians pay the old geezers with money taken from younger and newer wage earners.
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BERNIE MADOFF: When Madoff's scheme is discovered, all hell breaks loose. New investors won't give him any more cash.
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SOCIAL SECURITY: When Social Security runs out of money, they simply force the taxpayers to send them more.
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Bernie Madoff is in jail.
The politicians remain in Washington .
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'The taxpayer: That's someone who works for the federal government but doesn't have to take the civil service examination.' - Ronald Reagan