Worst rate of the week

Posted in Investing by CrankySaver
April 3, 2009 12:24 PM - 1 Comments

“This is weak man.”

That’s how the hilarious E*Trade Baby would undoubtedly describe this offering from the online broker’s banking operation:

1.00% APY on certificates of deposit ranging from 12- to 24-months.

Just drop $1,000 into your E*Trade CD, watch compound interest work its magic for a year, and take your hard earned $10 to Taco Bell. Or you can wait two years, double your earnings, and trade up to Applebee’s.

We can’t believe anyone would consciously buy CDs that don’t even earn the pathetic average returns we’re currently seeing on 12- and 24-month CDs (1.35% and 1.60%).

But if you allowed an E*Trade CD to expire and be automatically rolled into one of these lousy investments, you need to take the Baby’s advice: “Take control. Rise up.”