Good Savings Rate! 1.86% APY!

[tsipple]

FYI, Think Credit Union has an August certificate savings account special of 1.86% APY. That rate is guaranteed for two years. Minimum opening amount is $2500, and minimum withdrawal is $2500. After seven days, there are no withdrawal penalties.

Highest rate I could find on BankRate.com is 1.42% APY on a conventional one month (30 day) CD, with no interest rate lock on that. (Meaning, if interest rates go down, you have to roll over into something with a lower rate.) And that's a bank in Puerto Rico. You have to go to a conventional 6 month CD to get a higher rate but, again, no protection against lower interest rates 6 months from now, and you can't touch your money for 6 months.

Only bad news is there are some requirements to join this credit union -- it's not open to everyone. Check to see if you qualify. As a general comment, credit unions are absolutely wonderful institutions for DUers, since they tend to keep fees low and returns high.

[markus]

1. Wow! With a PCI of around 2.2%

You're money only depreciates at a fraction of a percent! Is this a great country or what!

[tsipple]

2. (Chuckle.)

Yes, welcome to the Bush Economy. :evilgrin:

Well, anyway, despite the anemic interest rates out there, I did want to pass along at least one totally risk-free place to park any extra dough -- that pays as much as possible.

By the way, I-Bonds look pretty good right now, too. Those are 4.66% currently (adjustable). You have to hold a minimum five years to avoid penalty, and interest accrues up to 30 years. The bonds pay out 1.1% above the CPI, adjusted every six months. If there's deflation, you get 1.1% guaranteed. After October 31, the 1.1% fixed rate component is likely to adjust downward. You can order these bonds online, with a credit card, in any denomination. Taxes are deferred as long as you hold, and they're exempt from state and local taxes. You can use the bond proceeds tax free for certain favored activities.

[madrchsod]

3. how about this-

14% every six months, long term 18%. 1000 min. my parents bought notes in the late 70`s- early 80`s. they amazed one hell of alot of money in a few tears..the s&l and bank were begging them to take their money into anunties...try rolling over 18% per yr on 5000 for a few years....