Rising Bank CD Rates

June 30th, 2011 Jackson Colson Leave a comment Go to comments

The chance of rising Bank CD Rates any time soon appears to be just a wish. It is true that the Euro zone countries just raised their interest rates to 1.25%. This does give investors a little hope. It also worries many that the weaker economies might faultier.

Higher interest rates are not only good for investors, but it helps to control inflation, which are what Germany needs at this time. That is one of the few countries that have recovered from the economic meltdown the financial institution threw the world into just 3 years ago.

For those of you that are concerned with the current Bank CD Rates and are thinking of opting for the Rising rate CDs that many financial institutions are offering, take note of your full options and opportunities.

I give you Bank of America as an example. At this time they are offering an 18 month opt up CD that is earning an APY of 0.75%. Their standard 18 months CD is earning an APY of 0.60%. It would only make common sense to place your money in the opt-up CD because the current rate is already higher than the standard CD rate being offered. In addition, if the CD rates being offered by BoA increase, you can have your APY increased once during the term without extending the term.

In some examples the rising rate option is earning a lower APY than the standard CD rate. If you encounter that remember the increase of a CD rates is at the discretion of the financial institution that is offer the CD. They also generally only raise the rates at 0.1% to 0.25% APY at a time.

In the current economic climate, the rising bank CD rates do not have much to offer. Everyone has been waiting three for the rates to stop falling and rise again. We are all still waiting.

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