AMEX Bank also has a variable interest rate “high yield’ savings account that currently earns a generous 1.50% APY. While this bank rate is subject to change it is defintely a competative rate. Capital One direct banking (online only) actually has higher savings rates at 1.55% APY but $2,500 minimum average daily balance must be maintained to earn that interest rate. Also the first twenty five hundred dollars in the account do not earn any interest at all: 0%. American Express pays interest on the entire bank account balance.

Call Centennial Bank at 800 251-0705 ext. 103 to open up a new account.

HSBC Direct has the best CD rates on 9 month certificates of deposit. HSBCDirect 9month CD’s will earn 2.05% APY interest. The minimum deposit requirement is only one dollar! HSBC Direct also offers online savings accounts, credit cards, and online payment accounts.

HSBC Direct is a solid financial institution since it is the online division of HSBC Bank USA, N.A. and they are FDIC insured. HSBC Bank has a worldwide presence of over 10,000 branches.

Big corporations are cutting costs where ever they can. Stores are closing (Virgin Megastore in downtown San Francisco has been a landmark for years and they’re going out of business.) With the current recession layoffs are rampant, common, and inevitable. What will all of these unemployed people do? Hopefully they’ll tap into their skillset and open up businesses of their own.

Rents will go down since there will be many vacancies. Locals might become loyal to these new small businesses. What has the man done for you lately anyways?

Provident Credit Union reserves the right to charge a penalty for early withdrawal from the CD account. They provide secure online access to account holders.

Provident CU has local branches in the San Francisco Bay Area. Here’s a list of their branches:

• Belmont
• Daly City
• Eureka
• Folsom
• Hayward
• Los Gatos
• Menlo Park
• Millbrae
• Monterey
• Oakland (Airport)
• Redwood City
• Redwood Shores
• San Francisco (Financial District)
• San Francisco (Federal Building)
• San Jose
• San Mateo
• San Ramon
• Walnut Creek

• 12 mo CD rates: 2.85% APY
• 3 yr CD rates: 3.00% Annual Percentage Yield

There is a five hundred dollar minimum deposit requirement and there is a penalty for early withdrawal.
GMAC Bank is the online banking division of GMAC Financial Services, an automotive lending institution.

GMACBank is FDIC insured.

• Three year CD interest rate: 3.20% APR | 3.25% APY
• Four year CD interest rate: 3.40% APR | 3.45% APY
• Minimum Deposit: $2500

With these high CD rates the minimum deposit of $2500 in a 3 year CD would earn about $251 dollars in interest and a 4 year CD would earn about $363 dollars in interest. This certificate of deposit is a risk free investment since Discover Bank is FDIC insured. An early withdrawal penalty applies if withdrawal is made before CD maturity.

Discover Bank has been in business for over 95 years. They’re well known for their credit cards since they give very generous cash rewards. There is also a dedicated Discover gas credit card that earns 5% cash back at any gas station plus cash back for regular purchases.

30 days CD rates: 1.24% APR | 1.25% APY
60 days CD rates: 1.49% APR | 1.50% APY
3 months CD rates: 1.99% APR | 2.00% APY
6 months CD rates: 2.48% APR | 2.50% APY
12 months CD rates: 2.76% APR | 2.80% APY
18 months CD rates: 2.76% APR | 2.80% APY
24 months CD rates: 2.76% APR | 2.80% APY
30 months CD rates: 2.76% APR | 2.80% APY
3 years CD rates: 2.76% APR | 2.80% APY
5 years CD rates: 2.96% APR | 3.00% APY

New South Federal Savings Bank only requires 1000 bucks to open a new certificate of deposit so why not open one online today? In addition to their investment banking products New South Federal Savings Bank also provides consumer credit in the form of home mortgage loans and automobile loans.

BofA also has no risk 9 month CDs with a lower annual percentage yield of 1.75%. There is a penalty for early withdrawal after the first 6 days of opening this CD account but it’s waived if the money is reinvested into another Bank of America deposit account. These certificates of deposit earn a lower CD rate for a longer term since there is some degree of protection against withdrawal before CD maturity.

B of A has a large presence in the United States with 4955 places to access money (ATMs and local bank branches) in California alone.

CapitalOne also offers best business money market account interest rates at 1.75% APY. Business owners can have easy access to their money (via checks and online electronic transfers) and they can also earn interest on the funds sitting in the business money market account. The minimum to open this bus money mkt account is only $1. One important note from the Capital One website:

Business Money Market Accounts have different rules for withdrawing funds than regular checking accounts. Youre allowed up to six transfers or withdrawals each statement cycle, three of which may be checks written to a third party.

So as long as you’re ok with those terms then why not make some extra money?

FDIC Insurance

Money market accounts can be FDIC insured if the bank is a participating member of the Federal Deposit Insurance Corporation. The FDIC has a search tool listed on their website.

Electronic Transactions

Check with the online bank and read the terms and conditions. Online savings accounts are similar to online money market accounts since both investment products can utilize electronic transfers. Checks can also be written to access money but there may be a limit. Etrade only allows three check transactions per month.

Account Minimums and Fees

Most banks have different terms and conditions so make sure to identify:

• Opening Account Minimum Balance(this can be from $1 to $100000)
• Monthly Minimum Balance (a fee may be charged if the minimum monthly average is not met-eTrade charges $10/month if the minimum average monthly balance is at least $1000)
• ATM Fees (some banks will refund their own ATM fees-a fee may still be charged by the bank or company of the ATM that is being utilized for the transaction)
• Check Printing Fees

Read the fine print before signing up.

The fine print:
The certificate of deposit interest rate for their 1 yr CD is actually 3.440% APR but when taking the power of compounding interest into consideration the effective annual percentage yield is 3.5% so the net gain for each 1000 invested is $35.

Assuming high CD rates exist at the time, one can purchase several CDs at varying lengths so there is constantly one CD maturing. Example: Buy 1 certificate of deposit at 3 months, one at 6 months, and one at 1 year. Then when the 3 month CD matures, reinvest the money that you put in along with the interest that you earned into a 1 yr cd. When the 6 month CD matures, also reinvest it into a 1 year CD. Then when the 1 year CD matures, again reinvest it into another 1 yr CD. As long as CDrates stay high then you will be making more money than purchasing one CD at a locked in rate. With this method you also have access to your money since there is always one CD maturing.

Make sure that you can live without this money since you can be penalized for early withdrawal of a CD (this is quite common for most banks).

The internet is an invaluable tool when making CD interest rate comparisons. Internet banking rates depend on the prime rate and the bank’s forecast on the bank prime interest rate. Market rates can change daily and going to a bank’s website will get you the most current CD rates available.

Save your Money

Opening a certificate of deposit with a bank that is FDIC insured has virtually no risk since the US Government is providing insurance for your investment. CD rates have historically been higher than online bank savings rates however the US Economy is in a recession and the future of banking is uncertain. Investing in CDs is a safe way to make money with your money.