bank rates

UmbrellaBank 2.90% 18-month CD

Some readers think the returns on certificates of deposit have become so pathetic, even the best deals aren’t worth writing about.

They insist that a high-paying checking or savings account is a far better alternative. But here’s the argument for sticking with CDs.

Your return is guaranteed. Banks can, and often do, lower the eye-catching interest rates they’ve been offering on checking and savings accounts to attract new deposits.

So we’ll keep looking for the top-paying CDs, like this one from UmbrellaBank.

It’s offering 2.90% APY on an 18-month CD, beating most yields on 12- and 24-month CDs. In fact, it’s more than double the national average of 1.37% on a 12-month CD.

The minimum deposit is only $1,000 and if you’re looking for the income, you can get monthly or quarterly interest checks. is the online division of New South Federal Savings Bank, which has one full-service branch in Birmingham, Ala., and mortgage offices across the region.

New South is losing money and its portfolio of bad loans nearly tripled last year, so it earns only one star out of five stars on Bankrate’s Safe & Sound ratings.

But that’s so typical of banks offering the best rates and it’s FDIC insured, so your deposits are guaranteed.

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Comments (2)
1 Star2 Stars3 Stars4 Stars5 Stars (17 votes, average: 3.71 out of 5)
2 Existing Comments
  1. BloggingBanks said:
    on March 22nd at 03:23 pm

    Nice deal.. Interest rates are going tostay low for a while. So why not park your cash in longer term maturities for more yield.

  2. BankVibe said:
    on March 22nd at 04:12 pm

    This is a solid deal for an 18 month CD (currently), but I still have to respectfully disagree with your overall assessment and would opt for a 4 – 5% apy interest checking account rather than any 18 month cd yielding less than 3 percent.

    Here is why…

    In almost all instances I would agree and stay with CD’s but we are in a financially unique time as bank consumers and, in general CD rates are,

    A) barely squeaking by the rate of inflation, and

    B) really have nowhere to go but up from here (I know this saying is a financial fopa, but I believe it applies in this unique case)

    The likelihood that you will find CDs yielding higher rates than this offer within the next 18 months is, in my opinion, very high.

    Sure your interest checking rates will go down, but in the mean time why not invest in them while the gettin’ is good then swap them out for CD’s once their rates have caught up?