Top CD Rates

Now that the bail-out has failed it will be interesting to see what happens to the CD Rates in the USA. Apparently, the House of Representatives is closed for a few days to honor the Jewish Rosh Hashana holiday.

Two things could happen in the short-term. 1) USA CD Rates will rise. This is because banks are unwilling or unable to loan to each other. This will force the overnight rate well above the FOMC target of 2.00%. Banks will need to raise deposits and with so many competing against each other, CD rates will go up. Tomorrow being the end of the month and quarter, many USA banks will want to have their books looking healthy. If you have extra funds, do some searching and some calling. CD Brokers may be especially attuned to high CD Rate offers since many banks use them as a funding source.

2) CD Rates in the USA may go down. The Fed may be in the mood to lower rates to try to force the short-term rates down and encourage banks to lend to one another and open up their pipelines to people and businesses like you and me. This may work short-term, but unless a real fix comes through, rates will trickle back-up.

Here are some high interest CD Rates.
Corus Bank, IL: 1-year at 4.60% APY – 1-Star

Geauga Savings Bank, OH: 1-year at 4.61% APY – 2-Star

EverBank, FL: 1-year at 4.38% APY. — 4-Star

State Bank of India, NY: 2-year at 4.52% APY – 4-Star

Ratings by Bankrate.com

I’m sorry, but I just can’t jump on the band wagon for this bail-out. I know a lot of people are saying it is necessary or the American financial system will fail. Poppy-cock. Without the bail-out the cleansing that needs to take place will take place. With the bail-out more risky behaviour will be encouraged.

$700BB is a huge sum of money to add to an already out-of-control debt situation. Don’t do it. Please don’t do it.

I would keep your funds in a few on-line savings accounts and CDs. If you have some extra make some careful stock purchases, but be very careful.

This is America. We don’t need anymore bail-outs.

I thought it might be fun to feature banks in the home states of the current Presidential / Vice-Presidential candidates. As most of you know, the VP for the Republican Party is Sarah Palin from Alaska (AK).

This will be a four-part series and after I’m all done, I’ll try to draw some conclusions for the upcoming election. For now, here is a run-down of banks in Alaska and their CD Rates.

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