We are extremely risk averse so our only form of investment (short of very conservative safe choices within the 401(K) from work) are CDs. Some of our certificates are maturing soon and we are realizing that the rates at the local banks have gone down pretty significantly in the last year - year and a half. Online banks offer higher rates of course but are they safe?
Do you have any CDs with these kinds of banks? What are the pitfalls, what to look out for?
Appreciate the advice in advance.
Emily.
I have a savings account with discoverbank and a CD with Ally. No issues with either. Just a good idea to login periodically to check on things. Sometimes transferring money out takes a couple of extra days so plan ahead!
Thank you! I guess no one else does it.
I use online banks for CDs. Just make sure they’re FDIC .
Try Synchrony Bank. They have 12 month CDs @ 1.2% APY. They also have 19 month CD at 1.25% APY. I’m hesitant about longer terms as Feds are grumbling about raising rates mid year? Also try the following links. I do miss the days of 5% CDs. Good luck.
Its awful that you cant get a better rate on savings/cds at banks. They are basically getting money at zero percent, and it should be illegal that a person cant get a better return. They are making money hand over fist!