Safe Investment Guides

I wrote a series of articles on various investments that are generally deemed safe. I actually posted them with an article directory that I’ve enjoyed writing for. Anyway, here are the links. Let me know what you think.

Have an awesome weekend. And remember above all else, God is in control.

Safe Investments Part I
Safe Investments Part II
Safe Investments Part III
Safe Investments Part IV

cd :O)

FDIC Establishes A National CD Rate

The FDIC has basically established a national rate for CDs. You’ll find it quite difficult to find any bank offering above 1.60% for 1-year CDs. You may be wondering why. Starting January 1, 2010, under capitalized banks have to set rates at or below the Weekly rates that the FDIC publishes. Here is a link.

What is interesting that even healthy banks are deciding to follow the rate cap. I guess they figure if the FDIC thinks that is a “good” level they might as well fall in place. Many are even offering lower rates. We have even heard of some pressure from bank examiners telling banks, healthy or not, that they shouldn’t be paying rates higher than the cap.

Honestly, when the law was passed I didn’t really see this as the outcome. I thought it might make it harder for the unhealthy banks to raise deposits and thus decrease potential losses if the bank fails. I see the opposite happening. With many healthy banks posting lower rates, the unhealthy banks are still able to easily bring in deposits.

Regardless it is very frustrating to see the government stepping in so strongly to basically regulate the rates that banks pay. It is also interesting to note that although banks haven’t strayed too far from the posted CD rates, many are still out there with high yield savings and checking account specials.

Another interesting development is to see banks work around the caps with creative penalties. For instance we have seen a couple of banks offer 2-Year rates with a zero penalty after 1-year. That effectively allows them to use the higher 2-year rate for a 1-year CD. Also goes to show you that creativity can “trump” governmental restrictions. Also goes to show you that governmental restrictions are rarely thought out well enough and often have the opposite effect of what was hoped or intended.

Two good notes. Credit Unions are not regulated by the FDIC and thus have no rate cap. There are still a few out there posting 2% or above for 1-year CDs. Secondly, there is a bank with a 2Y at 2.53% APY with a 1x bump and a 3Y at 2.79% APY with a 2x bump. Shoot a message and use the magic words, “Awesome Rates” and I’ll give you a 20% discount from our normal fee.

[Update 3/11/10: The 2Y bump rate dropped to 1.88% and the 3Y dropped to 2.21%. At this point a 5-year with a low closure penalty may be the best option]

Have a great weekend.
cd :O)

Merry Early Christmas – CD Rate Stocking Stuffers

Yes, we are still alive. Actually, doing quite well. Our non-web based clients have been keeping us amazingly busy. However, I don’t want to forget about all of you either. So here is a round up of some sites that we have found helpful over the years. So check them out. If you find something good there, please come back and let me know. I like to here when our recommendations serve others well.

First, you check-out www.bromoney.com. They do a lot of blogging on current good CD deals. Second, try www.bankfox.com. I’ve mentioned them before. Finally, BankDeals.blogspot.com. I believe they are changing their domain soon.

Of course, as we make posts, if you have subscribed you’ll get a notice. If we don’t talk to you, have a Merry Christmas and Happy New Year. Thank you for you continued support of our site and services.

cd :O)
Faith-Family-Friends

Best IRA Certificate of Deposit Rates – October 2009

This month there have been a few institutions raising their IRA investment rates. One, a small community bank in Texas, had a 2.53% APY for 2-years with a one-time bump option. They have since pulled the rate and really aren’t that big, I won’t name them. However, I might in the future so you may want to stay in touch. Wink, Wink, nod, nod.

The big player seems to be Alliant Credit Union. They actually have CD rate specials quite often. If you are an existing member the process is much faster than trying to become a member and then get a CD done. So even if you run out of time, I think it would be a good idea to complete their process. The hardest thing with them is they don’t guarantee the rate beyond the current day. So if you put the IRA process into gear and the rate drops, you’re out of luck. Anyone can become a member by first joining the National PTA. This is $25, I believe. You then can complete the Alliant member application. Be forewarned that their online process has proven difficult for many in the past. It asks a series of questions about information it pulls from the credit bureaus and I’ve known several people that claimed the information was erroneous and thus they couldn’t complete it online. You can always go the route of snail mail if necessary. Anyway, the current highest IRA CD rates are as follows:
1y — 2.30% APY
2Y — 2.55% APY
3Y — 3.00% APY
5Y — 3.25% APY.

Their NCUA# is 67955 and they are based in the windy city of Chicago, IL. They are quite large with over $6 Billion in assets. As of March 2009 data, they have a 4-star rating.
Website

Another big player is Ally Bank, but they don’t offer rates for IRA CDs. People’s Trust Federal Credit Union has an 18-month IRA for 2.12% APY. They are based in Houston, TX. They have a 2-star rating. People’s NCUA # is 177. Looks like they have been around for a while.I did have to make quite a few clicks to get to the rates. I hate that. The link below should save you some time.
Website

If you’re wanting to stick with a bank try Nationwide Bank, FDIC# 34710. Their process isn’t too difficult. They are about $2.25 Billion in assets, had a nice second quarter profit, and 4.5 stars. They are based in Ohio. Rates are:
1Y — 2.05% APY
2Y — 2.35% APY
3Y — 2.60% APY
5Y — 3.20% APY.
Website

Well there you go.

Happy Investing.
cd :O)

CD Rates California

CD Rates California

I will be starting a series of posts that will be providing some free Bank CD Rate information. I’m going to start with California CD Rates. These posts will be an experiment to see how well our advertisements support our site. So if the information is helpful, please tell your friends and/or link to the post or blog. Also, leaving comments is always appreciative. Of course, please let me know if there is anyway to improve the information. We’ve added a feature where we color code the ratings. Hopefully, that will give you a quick visual on whether or not a bank or credit union is worth putting money into.

OneWest Bank, FSB — OneWest was formerlly IndyMac Bank which the FDIC took over. The FDIC actually kept the bank open and ran it as IndyMac Bank, FSB. They finally found a group of investors to move it back to private ownership. The investors got to take the good and leave the bad so have had a nice healthy start. They are currently about $17BB in assets with a very healthy 11.8% capital ratio. They made about $377MM in the first 6-months. Their CD Rates are not limited to people in California and are currently quite competitive. They will also accept IRAs, but the rates are a little lower. The are currently pushing the 1-year CD most heavily.

Visit their site for current rates and to open a CD. They also have a nice savings/money market account for 1.75% APY. Check the site for restrictions and details.
Rated 4-stars (****).FDIC# 58978.

Imperial Capital Bank — Imperial Capital has good rates and they offer either an on-line process or CDs can be opened through the mail. CD Rates are:

FDIC# 26348. The bank has $4BB in assets, but their Capital ratio is quite low at 4.20%.
Rated 1-star (*). Site.

The California Credit Union — California CU is open to all. You have to either be a current member of the PTA or PTSA or make a $5 donation. You can also gain membership by contributing to an organization like PBS. They need an additional $5 to go into a savings account. They are large for a credit union with about $1.5BB in assets. They have a 9.53% capital ratio.

They currently have a loss, but still are rated 3-stars (***). NCUA# 60784. Site.

That’s it for our CD Rates California post.

BBT Banking online

BBT Banking

It seems that many people are looking for info on BBT and their Banking Products. BBT’s official name is Branch Banking and Trust Company. They were established in 1872 so certainly have weathered quite a few storms. So let’s check-out BBT Banking. :O)

They are a large bank based in the south east of the US. They have about $147 Billion in assets. They indicated that checking accounts and savings accounts can be opened over the phone, but CDs require a branch visit. So it seems like they are good for locals only. The BBT CD Rates were pretty awful, 0.80% APY for a 1-year CD and 1.00% for a 2-year.

However, they do have a $100 bonus on their checking account if you attach Direct Deposit or do 3 Bill pays.

Their FDIC number is 9846.
Phone: 800-BANK-BBT (800-226-5228)
Main Location: Winston-Salem, NC
Rating: 5-stars
Website

Mortgage refinance and mortgage refinance rates also seems to be a popular search for BBT.

That’s all I know about BBT Banking.

cd :O)

What Is the Difference Between FDIC and NCUA Insured CDs?

I was reviewing our logs and noticed that someone had come to Jumbo CDs, looking for the answer to, “What is the difference between FDIC and NCUA Insured?”

Boy, did I feel silly because I didn’t actually have the answer on our site. After all, we help people invest in federally insured banks and credit unions. Of all places, the answer should be able to be found here. And now it is.

And the answer is, there is really no difference as far as federal protection. Both cover your bank accounts (CDs, Savings, Checking, Money-Market) up to $250,000 through 12/31/13. If the Gov’t doesn’t extend that it will revert back to $100,000. Both cover your IRA accounts assuming they are in a bank account and not a securities account up to $250,000. That was a permanent change made in 2004. IRAs are insured separately then your regular bank accounts.
Continue reading What Is the Difference Between FDIC and NCUA Insured CDs?…

America’s Credit Union CD Rates

America’s Credit Union has some nice CD Rates. I’m giving you a freebie so if you like what you see, hop on over to their website. The promotional rates aren’t good for IRAs. Membership is open to all. You can either be a current or retired member of the military or join the Association of the US Army ($33), link.

[Updated: 9/30/09] America’s Credit Union is federally insured by the NCUA. They have a 7-month CD at 2.00% APY, 13-month at 2.15% APY, and a 25-month at 2.50%. Those are really good for this time. They do require $50 to be put into a savings account.

The credit union is federally insured by the NCUA. Currently up to $250,000 through 12/31/13. They have about $344MM in assets and a healthy 7.91% capital ratio. They had a $1.9MM profit for through 6/09. The ratings we use give them 4-stars.

Here is their site.

I hope you find the rates helpful. Leave a comment on your experiences.

You can also view Highest CD Rates for other current rates.
cd :O)

Patriot Day — Never Forget

I wanted to get this posted this morning, but was not able. Here are some links to video tributes.

We must never forget.

9-11 Tribute 2006

9-11 Tribute Video

Sandy 9-11 8th Anniversary Tribute

8th Anniversary 9-11 Video Tribute

ChrisCD :O)

Highest CD Rates — September 2009 Update

Highest CD Rates – Update 9/22/09
1-year: 2.15% APY (3-Star)
18-months:2.30% APY (1-Star)
2-year: 2.53% APY, 1xBump (2-Star)
3-year: 3.00% APY (2-Star)
5-year: 3.70% APY (4-Star)

Although the talking heads keep pushing that the economy is recovering I think the millions of jobless, may disagree. The talking heads are focused on profit. So if a company can make lots of money while being lean and mean, well more power to them. The problem is we will see profits long before a serious recovey begins. Don’t get me wrong, a company needs profits before it can start hiring, but this will be a slow, slow recovery.

Commercial real estate appears to be the next big problem. Many developers built small business complexes expecting them to be filled with entrepreneurs looking to serve all of the new homeowners. As the complexes remain empty, the commercial property owners can’t afford to continue to take the losses each month. Many are letting them go into foreclosure or selling for steep discounts.

Residential property is still also posing problems. Many states had issued moratoriums on the foreclosing the property and those are beginning to expire. Banks have been trying to hold off showing losses, but they can only do that for so long.

Short-term CD Rates have continued to drop. Our high 1-year at 2.50% dropped to a 2.00%. The next highest rate, 2.35% APY, held this week, we’ll see for how long. Some of the big boys such as Ally Bank and Discover Bank have continued to adjust rates down. Ally Bank had a 1Y at 2.25% for a while, but it has dropped to 1.80%. Some long-term rates have inched up a bit. They had a 5-year CD at 3.70% APY. It stands today at 3.10% APY. Of course, 5-year CDs may not be the best idea right now unless you have a great ladder or the penalty is low for closing the CD early. The other side of the coin, we just don’t know when the rates will be increasing. The Fed is talking like it could be a while. A while could be six-months or it could be over a year. Check-out First National Community Bank (here’s the link). They have some good rates and a 0.25% bonus if you add a “Performance Checking Account”.

So do I have any good news. The workweek as reported for average hours worked increased a little. Income overall snuck up 0.1%. And my kids’ soccer team, the Big Dogs will be starting in Div. B in a couple of weeks. Our highest start ever. Yes, I am a very proud coach and father. So how about you guys? I know you read this. My logs tell me that. But let me know what is going on in your life. Or ask a question in the comments.

Mention this post and receive a 20% discount on our services.
cd :O)