Highest Yielding 5 Year CD Rates in Massachusetts (May 2012):

1) Institution for Savings In Newburyport (Newburyport, MA) – 5 year CDs yielding 2.50% APY requiring a minimum deposit of $500. This bank was founded in 1820 by 34 well-to-do businessmen in Massachusetts and today controls roughly Read more...]]> A few local banks and credit unions in Massachusetts are offering extremely high yields on their 5 year deposits when compared to today’s national average.

Highest Yielding 5 Year CD Rates in Massachusetts (May 2012):

1) Institution for Savings In Newburyport (Newburyport, MA) – 5 year CDs yielding 2.50% APY requiring a minimum deposit of $500. This bank was founded in 1820 by 34 well-to-do businessmen in Massachusetts and today controls roughly $1.3 billion in assets. Contact them at InstitutionForSavings.com or (978) 462-3106.

2) Merrimack Valley Federal Credit Union (North Andover, MA) – 5 year CDs yielding 2.30% APY requiring a minimum deposit of $500. Like many credit unions this one is a tad exclusive when it comes to membership. Unless you live, work, or attend school in the Merrimack Valley region of Massachusetts, you wont be eligible to join. Merrimack Valley Federal Credit Union has grown from just $1 million in assets in 1955 to just over $100 million as of 2012.

3) American Airlines Federal Credit Union (Boston, MA) – 5 year CD yielding 2.27% APY requiring a minimum deposit of $10,000. AAFCU has been covered a number of times on BankVibe.com over the years with their generally high standard on savings rates. Our only complaint with AAFCU is that they require a significantly larger minimum deposit than most local and regionally based banks and credit unions. To join this credit union you’ll need to have someone in your immediate family who works in the airline industry.

Putting the rates (above) in perspective: Today’s national average for 5 year CDs sits at roughly 1.50% APY and the highest yielding 5 year deposit from our database of banks accepting deposits nationwide is just 1.77% APY (from Intervest National Bank).

Founded in just 2006, Carter Bank and Trust already has a huge presence in these two states. Their corporation formed through the merger of 10 banks with 124 offices in Virginia and North Carolina. Despite it’s vast presence Read more...]]> Carter Bank and Trust of Virginia and North Carolina is offering some decent CD rates when compared to today’s national average as well as the top rates from our database of online banks.

Founded in just 2006, Carter Bank and Trust already has a huge presence in these two states. Their corporation formed through the merger of 10 banks with 124 offices in Virginia and North Carolina. Despite it’s vast presence within the two states, its not considered a large bank though. It is the 246th largest bank in the country by asset size and just the 8th largest bank in Virginia, with a little over 1,000 full time employees.

Carter Bank and Trust CD Rates:

(All savings and deposit products provided by Carter Bank and Trust are FDIC insured up to $250,000. Visit carterbankandtrust.com for further information. Rates not shown on their website.)

- 6 month CD yielding 1.15% APY requiring a minimum deposit of $2500.00.

- 12 month CD yielding 1.20% APY requiring a minimum deposit of $100.00.

- 36 month CD yielding 1.76% APY requiring a minimum deposit of $100.00.

- 60 month CD yielding 2.12% APY requiring a minimum deposit of $100.00.

To put the offers above in perspective, today’s national average for 12 month CDs and 5 year CDs sits at roughly 0.75% APY and 1.50% APY, respectively.

This is somewhat surprising timing for an uptick in savings rates given the latest announcements from the FED reaffirming the 2014 timeline for raising Read more...]]> Not sure if many of you have stopped by our savings rate database lately, but we have a new champion in rates. Currently CiT bank has just surpassed Barclays as the highest yielding online savings account with a 1.05% APY on balances of at least $25,000.

This is somewhat surprising timing for an uptick in savings rates given the latest announcements from the FED reaffirming the 2014 timeline for raising key rates. However, being relatively new in the online savings game, CiT likely made a smart move setting themselves apart from the competition in regards to rates.

Making More Sense of CiT’s Rate Hike:

Like we said CiT is relatively new, having only been on the seen for a few months. And since the release of their savings and CD products earlier this Spring they have been undergoing a fairly extensive marketing campaign.

As with every new online based savings account, you have to kind of take the market place by storm to receive much attention. And as a new savings account issuer, you really have only a few fronts to do this on. You can either come out with a new set of technological features that take advantage of user-requested capabilities like this, or with a new way of rewarding spending like this, or simply by offering the best rate – which is what CiT is doing.

CiT Bank recent rate history:

When CiT first issued this savings account it came with a still respectable 0.85% APY on daily balances of at least $25,000 or more. They then raised this rate to around 0.90% APY earlier this month and finally gave it an extra boost to it’s current level of 1.05% APY – allowing it to rest easily at the top of the charts (gaining them more exposure).

Our Take:

If you’re looking for an FDIC insured liquid savings account and have the required $25k in cash, then this is the way to go simply because you’ll be garnering the most in returns. However, like all money market and online savings accounts, the interest rate is variable and liable to change at anytime. Many new banks, or banks with a new online presence, come out of the gates sprinting with an enticing APY only to drop it once they’ve shored up enough new accounts. So I guess we’ll have to wait and see if CiT can maintain these attractive rate levels.

Today’s national average for money market accounts sits at just 0.50% APY on accounts with no minimum balance restrictions and just 0.66 % APY on balances of $25k or greater – making CiT’s offer close to double the national average. Compare all rates here.

The former “Community Bank” of Tampa Bay, Florida, is now rebranding themselves as “C1 Bank” and have issued this promotional offer as a grand-opening bonus….and to get themselves a little media attention.

The deal may not be all it’s cracked up to be though.

When you break down the annual percentage yield Read more...]]> Ok, so we’ll get to the catch right away – you need to open the deposit with $1 million.

The former “Community Bank” of Tampa Bay, Florida, is now rebranding themselves as “C1 Bank” and have issued this promotional offer as a grand-opening bonus….and to get themselves a little media attention.

The deal may not be all it’s cracked up to be though.

When you break down the annual percentage yield for this 5 year deposit it actually sits slightly below the national average at just 1.20% APY. On a 5 year CD, this comes out to a total of $61,294.04 in earnings on a $1 million deposit over the 60 month period – just enough for your pick of a Mercedes-Benz SLK350, SLK350, E350, ML350, or E350 Convertible.

You can actually choose any model of Benz that you’d like but if it exceeds the $61k mark (for precisely $1 million deposits) you’ll be stuck paying the difference. Also, don’t expect to be able to take the cash rather than the car either. C1 Bank has already inked the deal with Crown Eurocars in St. Petersburg, so you’ll need to sell it yourself if you’d rather have the cash (undoubtedly undercutting your earnings even further!).

This offer is available to residents in the state of Florida only! Stop by one of C1 Bank’s 19 locations with your Florida state issued ID to learn more about this offer.

Our take:

Dont look at this as anything other than a 5 year jumbo CD yielding just 1.20% APY. The fact that you can’t get the cash, or even your choice of auto-maker for that matter, make this offer seem like a lot of smoke and mirrors with little actual value.

To put the offer in further perspective, the current national average on 5 year deposits sits at 1.50% APY while the highest yielding 5 year CDs from our database sit well above the 1.20% mark at 1.80% APY.

Just today a number of congressmen and women demanded additional banking regulations in the wake of Chase Bank disclosing trading losses.

Chase – a commercial bank – has in the eyes of many, and particularly Michigan-Senator, Carl Levin, acted as a hedge fund with consumer deposits and cheap federal capital.

If you’re a deposit investor with Chase Bank, you’ve undoubtedly Read more...]]> If you bank with Chase, then the answer is likely yes.

Just today a number of congressmen and women demanded additional banking regulations in the wake of Chase Bank disclosing trading losses.

Chase – a commercial bank – has in the eyes of many, and particularly Michigan-Senator, Carl Levin, acted as a hedge fund with consumer deposits and cheap federal capital.

If you’re a deposit investor with Chase Bank, you’ve undoubtedly been a witness to their horrific consumer deposit rates, many of which are barely providing just half a percent in returns. Yet Chase Bank has (surprise) been making risky hedges with these funds.

Another Senator crying afoul on Chase Bank’s latest business practices, Oregon’s Jeff Merkley, had this to say when asked if he had a message for Chase Bank’s CEO, Jamie Dimon; ““Yes. If you want to be the head of a hedge fund, be a hedge fund,” Mr. Merkley said. “Terminate your access to the Fed’s discount window, terminate your access to deposits, and then we have no quarrel.”

He went on to state that current laws provide, “a big enough loophole that a Mack truck could drive right through it,” and a “license pretty much to do anything.”

Breaking Down the Banking Loophole:

1) Lets assume BankVibe started an actual Bank.

2) We then applied for and received FDIC insurance from the federal government. Meaning that we can protect our depositors under this governmental insurance program so that they will get all of their money back (from the FED, not us) if we happen to go belly up.

3) We then start collecting consumer deposits, paying between just 0.50% and 1.00% APY (national average for 12 month CD’s sits at 0.50%, while the national average for 3 year deposits sits at just 1.00% APY).

4) With the money collected from the deposits we then make investments through our subsidiary company that we’re allowed to create thanks to the reformation of the Glass-Steagall Act in 1999.

5) BankVibe then reaps the rewards of higher risk investments while paying only a paltry 0.50 to 1.0 percent in returns to our investors (aka depositors). If we lose depositors’ money from risky maneuvers and go under, the FDIC will foot the bill!

No risk for us!

So far in 2012, the top 5 year CD rates from online banks have peaked out at 1.80%, however, the top rates in Michigan for this particular term have sat comfortably Read more...]]> There’s quite a large number of local banks and credit unions in the state of Michigan with 5 year CD rates that are beating even the top 5 year online CD rates by quite a significant margin.

So far in 2012, the top 5 year CD rates from online banks have peaked out at 1.80%, however, the top rates in Michigan for this particular term have sat comfortably above 2.00%.

Today’s Top Ten 5 Year CD Rates in Michigan (May, 2012):

1) First General Credit Union  (Muskegon, MI) – 5 year CD yielding 2.50% APY requiring a minimum deposit of $1,000.

2) Menominee County Federal Credit Union  (Stephenson, MI) – 5 year CD yielding 2.39% APY requiring a minimum deposit of $10,000.

3) Delta County Credit Union  (Wells, MI) – 5 year CD yielding 2.38% APY requiring a minimum deposit of $1,000.

4) Service 1 Federal Credit Union (Wells, MI) – 5 year CD yielding 2.33% APY requiring a minimum deposit of $500.

5) Great Lakes First Federal Credit Union (Rapid Rivers, MI) – 5 year CD yielding 2.27% APY requiring a minimum deposit of $1,000.

6) mBank (Traverse City, MI) – 5 year CD yielding 2.25% APY requiring a minimum deposit of $250.

7) Wings Financial Credit Union (Romulus, MI) – 5 year CD yielding 2.22% APY requiring a minimum deposit of $1.00.

8 ) CASE Credit Union (Okemos, MI) – 5 year CD yielding 2.15% APY requiring a minimum deposit of $500.

9) First Bank, Upper Michigan (Gladstone, MI) – 5 year CD yielding 2.12% APY requiring a minimum deposit of $500.

10) Upper Peninsula State Bank (Iron Mountain, MI) – 5 year CD yielding 2.10% APY requiring a minimum deposit of $500.

To put the offers above in perspective, the current national average for 5 year CD’s sits at roughly 1.49% APY.

As of March, 2012, the rate of inflation sat at 2.65%.

To be fair though the month of April is almost always an out-lier as a data point in month-to-month US budget data due to it being tax collecting season. However, Read more...]]> Thanks to a 10 percent increase in tax revenue last month, the Congressional Budget Office has just reported a budget surplus of $58 billion for the month of April. This is the first monthly surplus they’ve recorded since the economic collapse of 2008.

To be fair though the month of April is almost always an out-lier as a data point in month-to-month US budget data due to it being tax collecting season. However, many analysts still suggest this is a positive sign of things to come.

For all of us savers out there, the continuation of positive economic data can only speed up the time frame the FED has for raising interest rates (currently set for early 2014).

Recent (Positive) Economic Data:

Despite a variety of troubling economic data (rising inflation, shaky markets, European worries) there are still a number of positive data points to take note of. Below are two that likely pose the greatest impact in the short term.

- The number of US job openings available as of March 2012 rose to  3.7 million – also the largest number since 2008.

- Crippling gas prices may be on the decline. As of the end of April, oil has fell to it’s lowest level in four months.

Although their primary business operations are based in London, they now have offices here in the United States and can accept Read more...]]> It has only been a few weeks since the UK-based, Barclays Bank, began offering FDIC insured deposits and savings accounts here in the United States (through their Delaware headquarters) however, they now have a full suite of online savings products – many of which are offering fairly exceptional yields.

Although their primary business operations are based in London, they now have offices here in the United States and can accept deposits from American consumers nationwide through their website. Compare Barclays rates vs. other online banks here.

Barclays Bank Online CD Rates (2012):

(Barclays Bank requires no minimum deposit on any of their savings products)

- 6 month CD yielding 0.55% APY.

- 12 month CD yielding 0.90% APY.

- 3 year CD yielding 1.40% APY.

- 5 year CD yielding 1.75% APY.

Their online savings account is featuring the highest APY when compared to the national average. As of May 2012, Barclays online savings account is providing an APY of 1.00%.

As we mentioned in our review of Barclays when they launched their CDs and savings accounts last month, Barclays has a decent assortment of features associated with their accounts. Our personal favorite is remote check deposit. Barclays customers can cash checks on the go via their smart phone (so long as its got a camera and internet connection). Remote deposit is the number 1 most desired feature in mobile banking this year!

Have you opened a Barclays savings or deposit online? If so, let others know what you think by leaving a comment!

If you’re on the hunt for the highest yielding bank deposits, we’ve compiled the top 5 in your state. The current savings environment is terrible throughout the country, so don’t expect much of anything in the way of interest. In fact, as of May, 2012, the national average for 12 month CD rates nationwide sits at just 0.70% APY while the national average for 5 year CD rates Read more...]]> -Wisconsin Residents Only-

If you’re on the hunt for the highest yielding bank deposits, we’ve compiled the top 5 in your state. The current savings environment is terrible throughout the country, so don’t expect much of anything in the way of interest. In fact, as of May, 2012, the national average for 12 month CD rates nationwide sits at just 0.70% APY while the national average for 5 year CD rates sits at just 1.20% APY.

Income investors typically invest in bank deposits due to their relative low risk and as a hedge against inflation. However, since the brief period of deflation we saw in 2009, bank deposits haven’t been able to keep up with the rate of inflation. In 2012 inflation the rate of inflation has hovered right around 2.80%. Compare this to our highest yielding 12 month deposit available nationwide (1.15% APY) and you’ll see that even if you’re money is stashed away in a bank CD you’re still likely losing over 1% annually on your dollar’s buying power.

That said, many investors are still wary of upcoming economic data and enjoy the peace of mind that comes with deposits – even in grim savings environments.

Below are the highest yielding deposit rates in Wisconsin so far in 2012:

1) West Point Bank of Oshkosh, Wisconsin is providing 6 month CD’s yielding 0.90% APY requiring a minimum deposit of $1,000.

2) Community First Credit Union of Waupaca, Wisconsin is providing 12 month CD’s yielding 1.10% APY requiring a minimum deposit of $5,000.

3) Co-Op Credit Union of Strum, Wisconsin is providing 2 year CD’s yielding 1.35% APY requiring a minimum deposit of $1,000.

4) Bank of Augusta of Augusta, Wisconsin is providing 3 year CD’s yielding 1.75% APY requiring a minimum deposit of $1,000.

5) Headwaters State Bank of Presque Isle, Wisconsin is providing 5 year CD’s yielding 2.31% APY requiring a minimum deposit of $1,000.

- All CD’s mentioned above are FDIC insured up to $250,000. Visit their website(s) to learn more.

Have you opened a deposit account in Wisconsin with a higher yielding interest rate than the ones we’ve listed above? If so, let us know about it by leaving a comment!