With banks and the economy in the news so much lately, you may be thinking more about the safety of your money.

If a depositor’s accounts at one FDIC-insured bank or savings association total $250,000 or less, the deposits are fully insured. A depositor can have more than $250,000 at one insured bank or savings association and still be fully insured provided the accounts meet certain requirements. Here’s how to get the maximum coverage for your savings.

All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyers Trust Accounts (“IOLTAs”).

For more information about temporary FDIC insurance coverage of transaction accounts, visit the official FDIC Web site.

Maximize Your FDIC Coverage

FDIC deposit insurance is $250,000 per depositor, per deposit category. The FDIC provides separate insurance coverage for funds that depositors may have in different categories of legal ownership. The FDIC refers to these different categories as ownership categories.

This means that each ownership category you have at the same bank is separately insured:

The FDIC adds together all single accounts owned by the same person at the same bank and insures the total up to $250,000.

Every joint account that an individual owns at the same insured bank are added together with his or her other joint account shares at the same bank, and the total is insured up to $250,000.

The FDIC adds together all Roth, Traditional, SEP and SIMPLE retirement accounts owned by the same person at the same insured bank and insures the total amount up to $250,000.

Here’s one way a household can have $1,500,000 of FDIC insurance:

Here’s one way a single depositor can be covered up to $500,000:

If you’re not sure how to set this up, check with your financial advisor, or with Discover Bank – one of the top paying CD and money market providers at this time.

How To Max Out Your FDIC Insurance On Savings and CD’s is a post from: RateNerd - unadvertised deals from banks.

                          

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5. CD Rates: Lots Of Cash, Where Is The Yield?

Following last week’s pause, CD rates on certificates of deposit continue to fall in the most recent CD rate survey.

The national average on a one-year CD yield is down 1 basis point to 0.36 percent.  The national average on a five-year CD yield fell 2 basis points to 1.2 percent.  Each basis point is equal to one-hundredth of 1 percentage point.

Savers need to look hard to find higher yields.  RateNerd finds higher CD Rates at Discover Bank which are presently paying 1.10% APY on a one-year CD.

National Average CD Rates

• 0.36% (1-year CD yields)
• 1.2% (5-year CD yields)

For deposits of $100,000.00 or more, the average one-year jumbo CD yield is down 1 basis point to 0.4 percent, and the five-year CD yield fell 1 basis point to 1.25 percent.

There is some good news for savers. The average money market account gained back the 1 basis point it lost last week and is now 0.15 percent.  You can check all rates at the CD Rate center on RateNerd.com.

Best CD Rates for October 2011 is a post from: RateNerd - unadvertised deals from banks.

                          

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Americans are pumping money into bank accounts, sending deposits to record levels near $10 trillion on fears the U.S. economy is on the verge of another implosion.

As a result, the national average on a 12 month CD is a meager 0.34% APY, according to Discover Bank’s website.

And the Los Angeles Times reports that banks are driving away deposits by refusing to renew CDs at higher rates and by imposing fees on checking accounts for depositors who don’t use other, profitable financial services as well.  This week Bank of America announced its intent to charge customers a $5 monthly fee to use their debit card.

There’s no sign that the flood into checking, savings and money market accounts is slowing down. In the last three months, accounts at U.S. commercial banks have increased $429 billion, or 10%, almost double the increase for all of last year.

The Fed has pledged to hold short-term rates near zero through mid-2013 unless the economy improves as a way to combat the nation falling back into a recession. That’s going to continue to cause pain to savers, and could force banks to become even more stringent about their intake of new deposits.

To find the best yields available for CD rates, check out the CD Rates tab on RateNerd.com.  Here you can find market leaders like Discover Bank who at the time of this post is offering 1.10% APY on its 12 month CD products – nearly three times the national average.

Resource: Discover Bank CDs

CD Rates: Lots Of Cash, Where Is The Yield? is a post from: RateNerd - unadvertised deals from banks.

                          

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Certificates of Deposit (CDs) have become a hot topic of conversation among investors.

Long the dependable-but-dull component of most investors’ portfolios, CDs became a prime safe harbor during the recent market turmoil by virtue of the very reliability that once made them seem staid.

As investors stampeded into treasuries for protection-and drove down yields on even 30-year Treasuries-investors discovered they could suddenly earn higher returns on CDs.

Buy a CD now and you’ll lock in a great rate with the confidence of knowing that your investment is FDIC insured.

How do CDs work and how can I take advantage of them?

CDs are low-risk investments you buy through a bank or thrift institution. For money you don’t intend to use for a specified length of time-6, 9, or 12 months, or several years-the bank will guarantee you a fixed return, usually substantially more than what you can earn on your checking or savings account.

But CDs share an important attribute with checking and savings accounts: they are insured by the Federal Deposit Insurance Corporation (FDIC). All CDs you hold in one institution are insured by the FDIC up to $250,000 per person, per deposit category. That’s a safety net you won’t find with stocks, bonds or mutual funds.

Ease and accessibility are two of the many great features of CDs. Unlike stocks or mutual funds, you don’t need a brokerage account to buy a CD. You don’t even need to file any paperwork. Just call your bank or go online to buy CDs without incurring transaction costs.

While you can access your money in an emergency, there are penalties for taking out assets before the maturity dates on each CD, typically equal to returns earned over the prior one to three months.

What should I know before buying a CD?

Before buying any CD, make sure you familiarize yourself with rules that govern it.

Whenever or wherever you buy CDs, it is essential that you read the fine print to understand the terms. Just as banking and checking accounts come with different features from bank to bank, the terms of different CDs can vary substantially from one to the other.

Beware of early withdrawal penalties, or other terms that may limit your flexibility to get access to your money if you need it.

Why are CDs important to banks?

CDs provide banks with a stable source of reserve funds. When banks sell you a CD, they can then turn around and lend the money in your account out to borrowers for more than they’re paying you and other CD account holders. If your CD is earning you 4 percent, for example, the bank might lend it out to other borrowers for 6-7 percent.

While CDs make bank balance sheets look good, in this market, they make investors feel good, too. People who are invested in CDs are sleeping well at night.

Who should invest in CDs?

Fernandez and Hance agree that CDs are best for investors who need dependable returns on their money, but won’t need the money for a specific period of time. Often these are investors who require predictability and safety in their investments.

Financial planners say it’s important to “ladder” your CD investments. That means you should buy CDs that mature every couple of months, for example, or every year to ensure your money is constantly being freed up at regular intervals should you need it.  You can see an example of how a $10,000 CD Ladder works here.

Where can I get the best rates of return for CDs?

Rates vary from bank to bank. Often online banks, like Discover Bank, offer significantly higher rates of return for their CDs than traditional banks.

Are CD’s Becoming Hot Again? is a post from: RateNerd - unadvertised deals from banks.

                          

CD Rates continue to drop. Here’s a look at some of the best CD rates that outperform the averages.

Finding the best CD rates is fairly easy – and its amazing to see the differenece between the average bank CD rates and the highest APY best CD rates available.

The average 1 year 12 month CD is paying 0.86% APY, and the average 2 year 24 month CD is paying 1.42% APY according to our CD survey. Compare those paltry yields with some of the most competitive CD rates from banks:

Discover Bank CDs

Discover Bank has been aggressive in offering CD rates higher than the national average.  They are a RateNerd favorite, and a Bankrate.com Top Tier Winner for consistently high yields.  Here’s a look at Discover’s current  CD rates:

Here are the current Discover Bank CD Rates (as of October 7, 2010 – click on the link for today’s rate):

3 month CD – 0.7% APY

6 month CD – 1.00% APY

9 month CD – 1.10% APY

12 month CD – 1.35% APY

18 month CD – 1.50% APY

24 month CD – 1.75% APY

30 month CD – 1.85% APY

3 year CD – 2.0% APY

4 year CD – 2.25% APY

5 year CD – 2.75% APY

7 year CD – 2.90% APY

10 year CD – 3.00% APY

Ally Bank

Ally Bank (formerly GMAC Bank) offers very simliar rates to Discover, and is higher than the national average.

• 1 year CD Rate 1.37% APY
• 3 year CD Rate 2.04% APY

Comerica Bank

Comerica has chosen the opposite approach – their CD rates are well below the national average.

• 1 year CD Rate 0.35% APY
• 3 Year CD Rate 0.75% APY

So it pays to shop around for the best CD rates to get the highest yield for your savings. Your CD laddering strategy is significantly impacted by your ability and willingness to find the best CD rates and add them to your CD ladder account. For daily updates, check the CD Rate center at RateNerd.com.

Finding The Best CD Rates Now is a post from: RateNerd - unadvertised deals from banks.

                          

CD rates are all over the place.

Short term CD Rates are higher, longer term CD rates dropping.

3 Year CD Rates Over The Last 6 Months

1-5 year terms have dropped in most cases.  The average one-year CD yield ticked up 1 basis point to 0.67 percent. The average five-year CD yield suffered though, falling 5 basis points to 1.88 percent.

The power of the internet lets us quickly find the best CD Rates.  CD investments are one way to diversify and add stability to your portfolio. While CD rates are not as attractive as they were a few years ago, you can still get a decent rate if you shop around.

CD investments or certificates of deposits are a great way to tame a high-risk portfolio into a low-risk one. However, short-term CD yields are unlikely to improve significantly until the Fed raises rates.

That’s why it pays to shop around.  As an example, Discover Bank is bucking the trend by offering competitive CD rates on CDs from three months to five years, paying higher than the national average. Here are the current Discover Bank CD Rates (as of October 7, 2010 – click on the link for today’s rate):

3 month CD – 0.7% APY

6 month CD – 1.00% APY

9 month CD – 1.10% APY

12 month CD – 1.35% APY

18 month CD – 1.50% APY

24 month CD – 1.75% APY

30 month CD – 1.85% APY

3 year CD – 2.0% APY

4 year CD – 2.25% APY

5 year CD – 2.75% APY

7 year CD – 2.90% APY

10 year CD – 3.00% APY

The minimum to open an account is $2,500. Interest from the advertised CD rates is accumulated daily and credited monthly.  Discover Bank is FDIC insured and your deposits are covered up to $250,000.

Advantages of CDs with short maturities

CDs with short maturities of three months, six months or one year allow you to take advantage of rates that might increase right when you’re ready to reinvest your money. If your portfolio is full of CDs with long-term maturities and you don’t have more cash to invest, you won’t be able to take advantage of higher interest rates that might pop up in the market.

Benefits of CDs with long maturities

Longer term three-year, five-year and 10-year CDs offer higher interest rates for allowing the bank to hold and use your money longer. This gives you the benefit of gaining more from your investment. Ideally, your portfolio should include a combination of short-term and long-term CDs so you can use CD laddering strategies and get the most bang for your buck. Look for the highest CD rates at RateNerd.com.

Where Are CD Rates Headed Next? is a post from: RateNerd - unadvertised deals from banks.

                          

These CD rates and Money Market rates from Discover beat the national average.

Discover Bank has been offering rates on its savings accounts, money market accounts, CD’s and CD’s for IRA’s for some time now.  The 30 month CD Rate is a full point higher than the national average according to the chart below (updated 5/29/2010).

A couple of rates to take notice of include:

24-month CD rate is one of the top 10 rates overall according to Bankrate (5/29/2010)

5 year CD Rate is one of the top 10 rates overall according to Bankrate (5/29/2010)

Discover Bank CDs have a proven track record, and offer a higher rate than the national average.  Discover Bank, in business for over 95 years, is part of Discover Financial Services—one of the most recognized financial service providers in the United States.

CD Rates, Money Market Rates Above The National Average – Daily Deal is a post from: RateNerd - unadvertised deals from banks.

                          

Where can I get the best CD rates?

Rates vary from bank to bank. Often online banks offer significantly higher rates of return for their CDs than traditional banks.

The power of the internet gives us the ability to quickly find the best CD Rates.  CDs provide banks with a stable source of reserve funds. When banks sell you a CD, they can then turn around and lend the money in your account out to borrowers for more than they’re paying you and other CD account holders. If your CD is earning you 4 percent, for example, the bank might lend it out to other borrowers for 6-7 percent.  So it pays to shop around because each bank will have its own philosply on how to set it’s CD rates.

As an example, Discover Bank is offering competitive CD rates on durations from three months to five years, paying higher than the national average. Here are the current Discover Bank CD Rates:

3 month CD – 0.65% APY

6 month CD – 0.90% APY

9 month CD – 1.00% APY

12 month CD – 1.60% APY

18 month CD – 1.80% APY

24 month CD – 2.05% APY

30 month CD – 2.20% APY

3 year CD – 2.40% APY

4 year CD – 2.55% APY

5 year CD – 3.10% APY

7 year CD – 3.40% APY

10 year CD – 3.70% APY

The minimum to open an account is $2,500. Interest from the advertised CD rates is accumulated daily and credited monthly.  Discover Bank is FDIC insured and your deposits are covered up to $250,000.

How do CDs work?

CDs are low-risk investments you buy through a bank or thrift institution. For money you don’t intend to use for a specified length of time-6, 9, or 12 months, or several years-the bank will guarantee you a fixed return, usually substantially more than what you can earn on your checking or savings account.

But CDs share an important attribute with checking and savings accounts: they are insured by the Federal Deposit Insurance Corporation (FDIC). All CDs you hold in one institution are insured by the FDIC up to $250,000 per person, per deposit category. That’s a safety net you won’t find with stocks, bonds or mutual funds.

Ease and accessibility are two of the many great features of CDs. Unlike stocks or mutual funds, you don’t need a brokerage account to buy a CD. You don’t even need to file any paperwork. Just call your bank or go online to buy CDs without incurring transaction costs.

While you can access your money in an emergency, there are penalties for taking out assets before the maturity dates on each CD, typically equal to returns earned over the prior one to three months.

What should I know before buying a CD?

Before buying any CD, make sure you familiarize yourself with rules that govern it.

Whenever or wherever you buy CDs, it is essential that you read the fine print to understand the terms. Just as banking and checking accounts come with different features from bank to bank, the terms of different CDs can vary substantially from one to the other.

Finding The Best CD Rates Now is a post from: RateNerd - unadvertised deals from banks.

                          

Choosing between a CD rate and a Money Market rate?

CD rates may cost you flexibility, and some upside when rates finally start moving up.

If you have no concerns about locking up your money, you might as well invest in a CD.  Right now CD rates for terms of 2 years or more offer a clear advantage over money market account rates.  However, money market accounts offer the advantage of being able to move your funds with prevailing bank rates.  If the macroeconomic trends are pointing to a rise in interest rates, you may be better off looking for yield in a money market account — and preserving the flexibility of your deposits — rather than committing to current CD rates.

Choosing between the two can be daunting.  You can look at the rate tables here on RateNerd.com, or look at this example with Discover Bank CDs rates and Discover Bank Money Market rates:

You can see that the Discover Bank CDs 12-month CDs rate and the money market rate are neck and neck, but the CD rate nearly doubles if you are willing to lock up your money for 10 years.

The main difference is in the liquidity of the investments. A non-negotiable CD is meant to be a buy-and-hold investment. If you need your money prior to when the CD is scheduled to mature, you pay a penalty for early withdrawal. That penalty is typically the loss of three to six months worth of interest income.

Generally speaking, don’t invest long-term when you expect to need the money in the short-term. The converse is also true. Don’t invest short-term when you won’t need the money for a while. You’re accepting a lower return for liquidity that you don’t need.

Certificates of Deposit (CDs)

CDs are safe investments with little to no risk and are locked in for a set amount of time. There is usually a minimum deposit of $500 to $10,000 and account holders are typically subject to a penalty for early withdrawal. FDIC-insured CDs earn interest rates around 1.10% to 1.60% for 12 months (based on the national average).

Money Market Accounts

Money market accounts are also short-term debt instruments that earn interest based on funds from commercial paper, repossessions, Treasury Bills and other securities with a maturity date of one year or less. They are FDIC-insured and currently average about 1.07%. As long as you meet the minimum base deposit amount at any given time, you are not normally penalized for a specified number of monthly withdrawals. Don’t confuse this with a money market “fund,” though, which is not FDIC-insured.

Which Is Better – 1.60% CD Rate Or 1.40% Money Market Rate? is a post from: RateNerd - unadvertised deals from banks.

                          

We found the four best CD rates paying at least 2.00% APY on a one year CD.

CD rates change daily, so move fast if you want to lock in some of the best CD rates available right now.

All four of these credit unions are members of the NCUA which insures your CD deposits up to $250,000.  Any of these CD’s could make a good addition to your CD ladder.

Alliant Credit Union – 2.00% APY 1 year CD Rate.  $1,000 minimum.  Alliant Credit Union.

America’s Credit Union – 2.00% APY 1 year CD Rate (actually 13 months!).  $500 minimum.  America’s Credit Union.

Southeast Financial Credit Union – 2.00% APY 1 year CD Rate.  $500 minimum. Southeast Financial Credit Union

BEST 1 YEAR CD RATE! Melrose Credit Union – 2.07% APY 1 year CD Rate.  $500 minimum. Melrose Credit Union

Best CD Rates for 1 Year CD’s Up To 2.07% – Daily Deal is a post from: RateNerd - unadvertised deals from banks.