Interesting Money

I suspect you’ve heard by now that the Fed unexpectedly slashed interest rates this morning down to 3.50%. Will the rate slashing stop now? My magic 8-ball says, “outlook does not look good.”

In other words, there’s no time like the present to lock in a CD. Sadly, I’m afraid that any remaining 5% savings accounts and CDs will soon be flirting with extinction. Heck, even 4% accounts will soon be scarce!

Yesterday I locked in a 7-month CD with IndyMac Bank at 5.15% APY. It was ideal timing – rates have already dropped slightly, with more rate cuts undoubtedly looming.

A Few CD Options

Here are a few possibilities, with rates current as of this typing.

• IndyMac Bank – 5.00% APY (7 months). The rate locks once you apply, giving you 12 days to fund the account. Available online. $5,000 minimum.

• Superior Savings – 5.25% APY (7 months). The rate locks for 14 days following your initial call to setup the account. $500 minimum.

• E-Loan – 4.76% APY (6 months). Requires ACH transfer from an existing account (such as your checking or certain savings accounts). The rate locks immediately after applying. $10,000 minimum.

• Key Direct – 4.75% APY (36 months). The rate locks from the date of your postmarked check, so don’t delay! Rates may vary by location. $5,000 minimum.

• TD Ameritrade – 5.30% (3 months). Only available online, and requires that you open a brokerage account. $10,000 minimum.

Once again, these rates may already have changed by the time you read this, so please double-check before you pull the trigger.