bank rates

It’s Time To Talk About 6-Month CDs

Piggy bank inside a life preserverIt’s hard to recommend any saver put a dime of their hard-earned money toward a 6-month CD today.

But if the timing of the term appeals to you more than anything else, open an MMA account with EverBank. It pays a guaranteed rate of 1.10% APY for 6 months.

That’s two-tenths of a percentage point better than the top nationally available 6-month offer on our CD Rates Leaderboard.

It’s been a long time since we’ve had anything positive to report on 6-month CDs. The chart below — a familiar story to savers by now — shows why.

Look at how far the average rates on certificates of deposit have fallen since 2008. It’s pretty depressing to see the typical 6-month CD paid more in January 2008 than the very best 60-month CD pays today.

But we can only say the same thing so many times. Here’s why we’ve repeated ourselves so much over the last 1 1/2 years.

There’s really no clearer depiction of hitting bottom (and staying there) than this chart, which shows how average CD rates have basically flat-lined across all terms for more than a year now.

Today, the average 6-month CD pays 0.15% APY, just off the record low for this term.

The best bank CD available to all savers pays 0.90% APY, a rate that has remained essentially unchanged since fall 2011.

You can get this rate at two banks:

CapitalSource Bank (www.capitalsourcebank.com), a Los Angeles-based lender to small and middle-market business, which has 21 branches in central and southern California, requires a $10,000 minimum deposit.

Pacific Mercantile Bank (www.pmbank.com), which is a community bank with seven branches in southern California, requires a $10,000 minimum deposit.

Banks qualify for our rankings by imposing no restrictions on who can buy their certificates of deposit, either online or through the mail.

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