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.
UmbrellaBank.com 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.
(17 votes, average: 3.71 out of 5)
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