6% CD Rates

Most banks that currently claim 6% CD rates are a joke. After the year 2008 it has become rare to even see a 5% Bank CD being promoted. For those of you who are looking for that elusive rate, you might want to consider taking what you can get now. So the real question is what is a Good Bank rate? Anything above 4% is a pretty good CD rate at the moment.

Not too many banks are promoting as heavily as they were before the new year, and won’t be for a while. A lot of banks have also received bailout money, but the largest cause of all the rates going down are the cuts the Feds made at the end of last year. So how does that affect you?

Well since the banks can use Fed money at such a low amount, they are not going to pay out high interest on CD rates to get your money as they once needed to invest their money. That means they are going to offer you a really low CD Rate, and if you take it then great. If not they have a steady amount of money they can get from a much larger source to reinvest themselves. Until that changes there probably won’t be any 6% bank Cd rates for a long time or even 5% CD rates for that matter.

Your best bet is to be very patient, and wait for bank specials. This can many times come in the form of online banks. Online bank CD rates have much lower overhead, and can thus offer you a lot better of a return on your money. Keep your chin up and stay sharp. Go with short term CD rates, and many times an odd number of months on a term can be a lot higher.