Archives for October 2009

Finding the best savings account rate is becoming harder and harder as rates decline every week. Several banks have lowered savings account rates, CD rates and money market account rates. 

Last week American Express Bank lowered the annual percentage yield they are paying for a savings account to 1.70 percent, that was down from an APY of 1.85 percent.

Ally Bank is another major bank that has lowered the rate they are paying for an online savings account, their current online savings account rate was recently lowered to 1.70 percent. This month DollarSavingsDirect.com lowered the APY on their savings account to 1.60 percent from 1.70 percent.

Although bank savings account rates are going down relentlessly you can find promotional savings account rates and deals. SFGI Direct is still offering one of the best deposit rates around, the current annual percentage yield for their Direct Savings Account is 2.25 percent.

ShoreBank is also offering an online savings account that still has an APY over 2.00 percent. ShoreBank’s Direct Online Savings Account has an APY of 2.15 percent.

H&R Block Bank, the banking arm of H&R Block is offering one of the best CD rates available today for a 3 month certificate of deposit.

Their promotional 90 day certificate of deposit currently has an interest rate of 1.24 percent and an annual percentage yield (APY) of 1.50 percent, one of the highest bank CD rates available. This promo CD rate and CD yield is available until November 13, 2009.

The average rate is almost three times the national average CD rate of 0.59 percent according to MonitorBankRates.com. In fact, the rate and APY is also higher than average 18 month certificate of deposit and just under the average 24 month CD rates at banks.

The minimum opening deposit for the 90 day CD is $5,000. Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor. The early withdrawal penalty is 30 days of interest.

H&R Block Bank 90 Day Certificate of Deposit

12 month bank certificate of deposit rates are averaging just above 1.00 percent right now. You can find 12 month CD rates a lot higher than the current average rates available these days.

ING Direct is offering a 12 month CD yield of 2.10 percent. Other national banks are offer similar competitive certificate of deposit yields. Here are some of the highest CD rates available today.

Another 12 month CD yield that is just above 2.00 percent is the Bank of Internet’s CD which currently has an annual percentage yield of 2.02 percent. Bank of Internet offers some of the best CD rates and yields available.

Ally Bank, formerly GMAC Bank, is offering an annual percentage yield of 2.00 percent for a one year certificate of deposit. Five other banks offering 2.00 percent APY for a one year CD, including First Central Savings Bank, Broadway National Bank, American Community Bank, Eastbank and Discover Bank.

AIG’s one year Bank CD rate is just under 2.00 percent, the APY is 1.91 percent. Nationwide Bank is next on the list with a 1.90 APY. Giantbank.com is offering a one year CD yield of 1.86 percent and HSBC Bank’s one year interest rate is 1.85 percent.

CD rates are expected to increase in the coming year as the economy recovers and the recession is over. The Federal Reserve Bank will be prepared to raise interest rates when the treat of inflation returns. That being said, we recommend you stick to shorter term certificate of deposits so you’re in a position to take advantage of rising CD rates.

Home equity loans are fixed-rate mortgage loans that with a fixed monthly payment. A home equity loan is secured by the available equity in your home. You receive the money you borrow all at one and then you pay it back over time in fixed monthly payments.

Home equity loan rates are a few percentage points higher than home equity line of credit (HELOC) rates. The interest rates are higher but you know what your payments will be over the life of the home loan because the rate stays the same. Unlike a variable rate loan like a HELOC.

Home equity loans are usually pegged to the Prime Rate that is published in The Wall Street Journal. The WSJ prime rate is also used to set interest rates on credit card rates and on car loans.

You can use a home equity loan to pay off higher interest rate credit cards. Home equity loan rates are around 7 percent these days, the average credit card rate is a lot higher, usually in the double digits and can approach 20% or higher for people that have less than stellar credit histories.

Using a home equity loan to renovate or add onto your house is another popular use. When home equity loans are used in this way you can also get a tax deduction on the interest you pay on the loan.

Discover Bank is offering an online savings account that has a very competitive annual percentage yield (APY). The current APY as of October 19, 2009 is 1.85 percent, a lot higher than the current national average rate for a savings account.

The minimum opening deposit for the online savings account is $500. Interest is compounded on a daily basis and credited to your account on a monthly basis. The 1.85% APY takes APY takes into account the effect of compounding, interest receiving interest. If you withdrawal any interest earned on the savings account the APY will be lower.

Discover Bank also offers an “AutoSavers” plan which will help you saving more money by having a scheduled repeating transfer of money from a checking account or savings account to your discover online savings account.

Accounts are FDIC insured up to $250,000. As with all savings accounts you are limited to six withdrawals per billing cycle.

Ally Bank, formerly GMAC Bank, has a 12 month certificate of deposit that has a current annual percentage yield of 2.00 percent. The minimum opening deposit is $0. You can lock in this CD rate and yield now and fund the certificate of deposit account after opening.

When you open a certificate of deposit you are guaranteed the best CD rate offered during the 10 day window you have been opening and funding the CD. Ally Bank refers to this CD rate guarantee as ”Ally Ten Day Best Rate Guarantee”.

Certificate of deposit accounts at Ally Bank have interest compounded daily which gives you a better annual percentage yield than CD accounts that have interest compounded monthly, quarterly or annually. Basically the interest you earn also earns interest quicker, raising the overall return.

Certificate of deposits are also insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 until December 31, 2013. On January 1, 2014 the maximum coverage reverts back to $100,000.

If you have more than $250,000 to invest in a CD you might want to consider the Certificate of Deposit Account Registry Service. The CDARS you can have FDIC insurance on up to $50 million in CD deposits. Learn more at CDARS.com

Ally Bank 12 month CD

MetLife Bank is offering one the highest bank CD rates and yields available these days for a 12 month certificate of deposit.The current annual percentage yield (APY) is 2.25 percent, one of the best CD yields around.

To earn the 2.25% APY you must deposit a minimum of $25,000 in one transaction. The CD deposit must be new money only, money not currently held at MetLife Bank.

You can deposit less than $25,000 into a MetLife Bank Certificate of deposit and still earn a great yield. The minimum opening deposit is $2,000 and CD account balances of $2,000 and $14,999 earn an APY of 1.25 percent. Certificate of deposit account balances between $15,000 and $24,999 earn an APY of 1.75 percent.

MetLife Bank certificate of deposits are FDIC insured up to $250,000 per ownership category, effective through December 31, 2013. Starting Janurary 1, 2010 FDIC insurance will return to up to $100,000 per depositor for all account categories except Traditional and Roth IRAs (and other certain retirement accounts), which will remain at $250,000 per depositor.

You have to mention offer code SALLY10 to receive their advertised APY. You can sign up on online her MetLife Bank SAlly10 Certificate of Deposit Offer or call MetLife Bank at 1-800-607-0328.

Freddie Mac, the government controlled agency that buy mortgages from lenders has a home foreclosure program called HomeSteps. The HomeSteps program offers buyers of foreclosed homes up to 3.5%  of a home’s price towards closing costs. The foreclosed home must be purchased for a primary residence and must be chosen on Freddie Mac’s website HomeSteps.com

Closing costs on a mortgage can run into the thousands of dollars, so this offer can help buyers who might not be able to afford a home right now. If you want to take advantage of this offer you will have to hurry, you have to submit an offer for a home before October 31,2009 and close on the home buy December 31,2009.

Now is a good time to buy a home, mortgage interest rates are near historic lows, current mortgage interest rates are near 5.00 for conforming fixed 30 year mortgages. There is also a first time home buyer tax credit of $8,000 that is good until November 31, 2009. These incentives plus the Freddie’s incentives make buying a home very compelling right now.

The HomeSteps program also includes a two year warranty on major appliances and other warranties on the foreclosed home including the following. 

• Air Conditioning
• Heating System
• Electrical System
• Plumbing System
• Water Heater
• Stove
• Microwave
• Refrigerator
• Dishwasher
• Washer & Dryer
• Garbage Disposal
• Trash Compactor
• Garage Door Opener
• Ceiling Fan

For more information on the foreclosure program visit HomeSteps.com

Bank of America is offering some of the best mortgage interest rates that are available these days. Their mortgage interest rates are very competitive with the national average mortgage interest rates available. Today’s 30 year national average mortgage interest rates are at 4.964 percent.

Mortgage Interest Rates

Bank of America’s fixed 30 year mortgage interest rates are at 5.00 percent. We received this mortgage rate on a conforming mortgage for a home purchase in California. The discount points on this home loan was 1.125. Discount points allow you to receive a lower mortgage rate.

Discount points allow you to ”buy down” the loan rate by paying a percentage of the mortgage upfront at closing. Some banks and mortgage companies will allow you can also roll the cost of discount points into the mortgage if the LTV ratio is still acceptable to them. Most banks once again require a LTV ratio of 80%. Meaning you can’t owe more than 80% of the value of the home.

Other mortgage rate quotes we received include a 4.25% mortgage interest rate on a 15-year mortgage. The points on this home loan were also 1.125 percent. On a 5/1 adjustable rate mortgage (ARM) the rate was 4.00% with discount points at 0.87.

Bank of America is also offering their “Net 5″ mortgage with is an interest only payment adjustable rate mortgage. This mortgage product allows you to only pay interest in the first 5 years of the home loan. Most banks aren’t offering interest only home loans anymore, unlike the hay day of the housing boom when mortgage lending practices were thrown out the window.

ING Direct, which made online savings accounts popular with their “Orange Savings Account” is offering 12 month bank CD rates that are some of the best CD rates available these days. ING Direct is offering two different CD rates and CD yields.

12 Month Bank CD Rates

The bank’s regular certificate of deposit has an annual percentage yield (APY) of 2.10 percent which is higher than all their CD terms, from 3 months to 60 months. The bank is also offering their 12 month “Added Value CD” which currently has an APY of 2.25 percent.

The CD yield is higher than their regular 12 month CD because you have to deposit “new money” into a Added Vale CD, new money is money not currently held at ING Direct. To receive the higher CD rate you must link and fund the new CD account from an external checking account. If you don’t you’ll receive the lower CD rate.

You can have the interest you earn on the account paid to you at the end of the term, monthly or annually. I personally would choose the monthly term especially if you’re not earning any interest on the interest (compound interest).

ING Direct says opening a certificate of deposit account online is a snap and will take ”less time than it takes to listen to a hair band’s greatest hit.”

ING Direct 12 Month Bank CD Rates

Did you know the company that is best know for preparing taxes also has a banking division? The banking arm, H&R Block Bank is a full fledged bank.

The bank has deposit products including bank CD rates, savings accounts, checking accounts. The bank is also offering credit cards and home loans, in fact, their mortgage rates seem very competitive.

The best CD rate deal H&R Block Bank is offering is for their 180 day certificate of deposit. The current annual percentage yield (APR) on their 6 month CD is a whopping 2.00 percent. Which wins our *CD Rates Best* award.  That CD rate is well above the  national average rate for a 6 month CD which is currently at 0.88 percent.

Most 12 month certificate of deposit yields are around 2.00 percent so this is a very good deal you should take advantage of before it ends. In fact, the promotional CD rate was supposed to end on September 30, 2009 but H&R Block Bank hasn’t pulled the deal yet.

Another good thing about this CD deal is the term is only 6 months so you won’t be locked into a long term CD when rates are rising which they are expected to do in the coming year. The minimum opening deposit for certificate of deposit deal is $10,000.

H&R Block Bank 6 month promotional CD rate deal

“Personal Savings from American Express” and “High Yield Savings from American Express” are the new slogans the credit card company American Express is using to promote their new high yeild savings account. 

The new savings account is being offered by the banking division, American Express Bank, which is a federal savings bank (FSB).

The high yield savings account is insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 until the end of 2013, the insured amount reverts back to $100,000 in 2014. The same holds true for all deposit accounts like savings accounts and certificate of deposit accounts insured by the FDIC.

The annual percentage yield (APY) on the saving account has a competitive rate of 1.85 percent. Its not the best savings account rate available but still a good deal for a high savings account. You can get rates of 2.00 percent or higher for other online savings accounts. Currently, SFGI direct is offering a interest savings account that has an APY of 2.25 percent.

In addition to a bank savings account American Express Bank is also offering some of the best CD rates available today, their current 12 month certificate of deposit has an APY of 1.75 percent. The bank is also offering other bank cd rates including a 24 month CD yield of 2.35 percent.

American Express Savings

SFGI Direct is currently offering an online savings account that has an annual percentage yield of 2.25 percent, one of the best online savings account rates available today. The 2.25 percent savings yield is current as of October, 7, 2009. The minimum opening deposit is $500.

SFGI Direct’s high yield savings account is a variable rate account just like all other savings accounts. Since the account has a variable rate it can change at anytime. If you’re interested in locking in a rate above 2.00 percent there are several banks offering 12 month certificate of deposits that have a CD rate around or above 2.00 percent.

The savings account has no monthly service charges. The minimum certificate of deposit account balance to earn interest is only $1.00. Savings accounts can only be opened online since SFGI Direct is an online bank that doesn’t have traditional brick and mortar bank branches.

SFGI Direct is a division of Summit Community Bank, Inc of West Virginia. Deposits are insured by the Federal Deposit Insurance Corporation (FDIC).

SFGI Direct High Yield Online Savings Account Application Here: Savings Account Application

Met Life Bank is offering very competitive CD rates and CD yields for their 3 month certificate of deposit. The rates and yields are tiered to the CD deposit amount. The higher the balance the higher the rate and yield.

The current CD yield as of October 9, 2009 is 1.00 percent for account deposits between $2,000 and $14,999.

For certificate of deposit account deposits between $15,000 and $24,999 the current annual percentage yield (APY) is 1.25 percent. For CD account balances $25,000 an over the current APY is 1.50 percent.

The minimum opening deposit amount is $2,000. Interest compounded daily, credited monthly. The overall return on investment will be higher with a certificate of deposit that has interested compounded daily. Some banks compound interest on a monthly or annual basis.

You can apply online to open a certificate of deposit with Met Life Bank or by calling 1-866-BankMet (1-866-226-5638). Online Certificate of Deposit Application.

Met Life Bank is the banking division of the insurance company Met Life.  Met Life Bank has been insured by the Federal Deposit Insurance Corporation (FDIC) since February 1999. The bank’s FDIC Cert number is 35055.

Bank of America is offering the following CD rates which are a higher than the national average CD rate for similar certificate of deposit products.

Current promotion CD rates include a 12 month certificate of deposit that has a current rate of 1.19 percent and an annual percentage yield ( APY) of 1.20 percent.

The individual retirement account (IRA) 12 month CD rate is even higher, the current rate is 1.83 percent with an APY of 1.85 percent. The minimum certificate of deposit opening deposit is $5,000 for a regular CD and $2,000 or an IRA CD.

Bank of America is also offering their 9 month ”Risk Free” certificate of deposit for both regular CDs and IRA CDs. The current rate on the regular 9 month risk free CD is .65 percent with an APY of .65 percent. The 9 month risk free IRA CD currently has a rate and APY of .75 percent.

The bank is also offering an 18 month “Opt-Up” certificate of deposit that currently has a CD rate of 1.49 percent and a CD yield of 1.50 percent. An Opt-Up certificate of deposit allows you to increase the rate and yield if interest rates go up during the time your funds are locked in a certificate of deposit.

Mortgage rates have been going down since late 2008 and the beginning of this year. Lower U.S. Treasury yields and the Federal Reserve have played an active role in lowering mortgage rates to come to the rescue of the housing market. 

Most economits believe that  the Fed won’t raise interest rates until the middle of 2010 when the economy and housing market starts to recover. 

The Fed Funds rate has been in a target range of 0% to one quarter percent since late last year when the credit crises hit and the recession started. The Federal Open Market Committee decided to keep the targeted Fed funds rate in the current range for now. Current mortgage rates will also remain in the current low range until the economy recovers and inflation becomes a threat. At that point the Feds will start raising interest rates again.

As of today, 30-year conforming mortgage rates are currently at 4.97 percent. 15-year conforming mortgage rates are at 4.45 percent, down from the prior week’s average 15-year mortgage rate of 4.47 percent. 5/1 adjustable rate mortgages are nearing 4.00 percent, the current 5/1 adjustable mortgage rate is at 4.11 percent, down from the previous week’s average mortgage rate of 4.20 percent.