CDs and savings again earning a decent return on clarkhoward.com

For the first time in a good while, you'll finally be able to earn much better rates on savings. You can now actually keep pace with inflation!

5-year CDs are again earning over 5% -- that's after months of 5-year terms yielding around 2.5%. 1-year CDs, meanwhile, are in the steady 4% range. For the shorter term, Clark suggests you might want to look at an online savings account.

So how do you find these deals? Many of the best ones are at community banks and credit unions in your hometown. Look on billboards or signs when you're driving around. Just don't look at the giant monster mega-banks!

You can also get a good survey of rates around the country at BankRate.com.

No one knows where CD rates are going from here. That's why Clark recommends laddering your CDs. The easiest way to do that is to split your money into 3 piles -- a money-market or savings account; a 1-year CD; and a 5-year CD.

A more sophisticated laddering approach would involve a 6-tier setup. Splitting your money into 6 even piles, you'd have the following set-up: A money-market or savings account; a 1-year CD; 2-year CD; 3-year CD; 4-year CD; and a 5-year CD.

Then when your 1-year CD comes due, you re-up in a 5-year CD; ditto for your 2-year CD, your 3-year CD, etc. That way you don't lock all your money into a 5-year CD if rates go up or down.

What others are saying

AMEX 1.85% Money Market
How can this rate be so good when CD rates are the same?
By RR @ 10/20/09 09:26:23 PMreport abuse
Advantra Investments
I came across a website from Advantra Investments. It says that they have notes from 7.5% APY to 11% APY. Terms from 3 months to 10 yrs. How do i know this is a good company or this is a good place to invest. Am I missing something here?
By Nathan Ball @ 06/23/09 06:29:02 PMreport abuse
short term investment.
I'm planning to buy a home about a year from now. I have save over 30K and would like to know where ie.cd,money market,online savings,etc.to invest upon buying a home.
By Binh N @ 02/15/09 09:07:13 AMreport abuse
Correct laddering
Clark says to re-up the maturing 1-year CD in a 5-year CD and ditto for the 2,3, etc. Over time won't I end up with all 5 year CDs with one maturing each year? I ask because the last sentence confuses me, "That way you don't lock all your money into a 5-year CD if rates go up or down."
By David @ 09/14/08 02:07:46 PMreport abuse
on line cd's
how do i know there safe
By james kirchner @ 09/07/08 07:31:30 PMreport abuse
Bankrate is lacking
Do you have the link where Bankrate is showing WaMu's 5% 12mo CD?

Here's Bankrate's page for the "High Yield Rates for 1 yr CD".
http://www.bankrate.com/brm/rate/high_ratehome.asp?web=brm&prodtype=invest&product=15&sort=2
As of 9:15am ET 8/26/08, the highest yield listed is 4.36% APY from Corus Bank.

Also, I've never seen Bankrate list atypical terms like 13 months or 8 months. Many of the best CD specials from banks and credit unions have non-standard terms.
By Ben @ 08/26/08 09:18:53 AMreport abuse
Bankrate
Your wrong bankrate does have the %5 wamu 13 month cd listed in its high interest cds under the 1 year catagory...other than the local paper bankrate is the best comprehensive listing place for rates...
By Dave @ 08/25/08 08:17:24 PMreport abuse
We need more than Bankrate
WaMu is now offering a 5% CD with a term of only 1 year! NOTE, this is not listed at Bankrate.com, but you can find it available online at wamu.com. Clark, you need to recommend other websites in addition to Bankrate. The highest 1yr CD rate listed at Bankrate is only 4.36% APY.
By Ben @ 08/25/08 05:16:04 PMreport abuse
integrity bank roswell ga
They have interest checking for %5 with no minimum to open. only pain in the butt requirement is to make 12 debit card or pos transactions each cycle...but %5 apr compounded daily and still have access to your money is pretty good right now!!...also when I ladder a cd its not that spread out, I try to open a new 6 month or 1 year high rate cd every month...do it for a year and you have a ladder....when rates stink cash cd and put in interest savings or checking till rates come back up again...I agree inflation is running higher than gov says but any cd rate over %4 is better than risking money in stocks and will at least keep you even with the "official" inflation.
By Dave @ 08/25/08 03:26:11 PMreport abuse
Clark's smokin' rope again
Price inflation is running over 10% a year for people in the real world. If you're dumb enough to believe the government's "official" inflation numbers, then it's only (LOL) 5%. Putting large amounts of cash in CDs paying 3%-5% is just plain stupid!
By John @ 08/25/08 01:38:12 PMreport abuse
Chasing CD Rates
It's a good idea to laddder your CDs to take advantage of changing rates. You want to say on the 'upswing' side of rates.
By Jim Pinckney @ 08/25/08 12:31:08 PMreport abuse
Get up to $250 Signup bonus from WTDirect
I just get to know this deal from DealDigs[dot]com that WTDirect is providing up to $250 signup bonus for their saving account with a APY of 3.31%. You can go to DealDigs[dot] to check for more details.
By Matt @ 08/24/08 01:17:36 AMreport abuse

AMEX 1.85% Money Market

How can this rate be so good when CD rates are the same?

By RR @ 10/20/09 09:26:23 PMreport abuse

Advantra Investments

I came across a website from Advantra Investments. It says that they have notes from 7.5% APY to 11% APY. Terms from 3 months to 10 yrs. How do i know this is a good company or this is a good place to invest. Am I missing something here?

By Nathan Ball @ 06/23/09 06:29:02 PMreport abuse

short term investment.

I'm planning to buy a home about a year from now. I have save over 30K and would like to know where ie.cd,money market,online savings,etc.to invest upon buying a home.

By Binh N @ 02/15/09 09:07:13 AMreport abuse

Correct laddering

Clark says to re-up the maturing 1-year CD in a 5-year CD and ditto for the 2,3, etc. Over time won't I end up with all 5 year CDs with one maturing each year? I ask because the last sentence confuses me, "That way you don't lock all your money into a 5-year CD if rates go up or down."

By David @ 09/14/08 02:07:46 PMreport abuse

on line cd's

how do i know there safe

By james kirchner @ 09/07/08 07:31:30 PMreport abuse

Bankrate is lacking

Do you have the link where Bankrate is showing WaMu's 5% 12mo CD?

Here's Bankrate's page for the "High Yield Rates for 1 yr CD".
http://www.bankrate.com/brm/rate/high_ratehome.asp?web=brm&prodtype=invest&product=15&sort=2
As of 9:15am ET 8/26/08, the highest yield listed is 4.36% APY from Corus Bank.

Also, I've never seen Bankrate list atypical terms like 13 months or 8 months. Many of the best CD specials from banks and credit unions have non-standard terms.

By Ben @ 08/26/08 09:18:53 AMreport abuse

Bankrate

Your wrong bankrate does have the %5 wamu 13 month cd listed in its high interest cds under the 1 year catagory...other than the local paper bankrate is the best comprehensive listing place for rates...

By Dave @ 08/25/08 08:17:24 PMreport abuse

We need more than Bankrate

WaMu is now offering a 5% CD with a term of only 1 year! NOTE, this is not listed at Bankrate.com, but you can find it available online at wamu.com. Clark, you need to recommend other websites in addition to Bankrate. The highest 1yr CD rate listed at Bankrate is only 4.36% APY.

By Ben @ 08/25/08 05:16:04 PMreport abuse

integrity bank roswell ga

They have interest checking for %5 with no minimum to open. only pain in the butt requirement is to make 12 debit card or pos transactions each cycle...but %5 apr compounded daily and still have access to your money is pretty good right now!!...also when I ladder a cd its not that spread out, I try to open a new 6 month or 1 year high rate cd every month...do it for a year and you have a ladder....when rates stink cash cd and put in interest savings or checking till rates come back up again...I agree inflation is running higher than gov says but any cd rate over %4 is better than risking money in stocks and will at least keep you even with the "official" inflation.

By Dave @ 08/25/08 03:26:11 PMreport abuse

Clark's smokin' rope again

Price inflation is running over 10% a year for people in the real world. If you're dumb enough to believe the government's "official" inflation numbers, then it's only (LOL) 5%. Putting large amounts of cash in CDs paying 3%-5% is just plain stupid!

By John @ 08/25/08 01:38:12 PMreport abuse

Chasing CD Rates

It's a good idea to laddder your CDs to take advantage of changing rates. You want to say on the 'upswing' side of rates.

By Jim Pinckney @ 08/25/08 12:31:08 PMreport abuse

Get up to $250 Signup bonus from WTDirect

I just get to know this deal from DealDigs[dot]com that WTDirect is providing up to $250 signup bonus for their saving account with a APY of 3.31%. You can go to DealDigs[dot] to check for more details.

By Matt @ 08/24/08 01:17:36 AMreport abuse

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Aug 22, 2008 -- CDs and savings again earning a decent return

What others are saying