I am thinking of moving a 50k savings account from 4.50% apy ING to E-loan which posted new rates for 5.25% apy on 4-4-07. That rate is the same as my dang 70k CD at ING. Anyone ever use E-loan?
Why the heck is the 6 month CD higher than 1 year? What a joke!
Yield curve is inverted (usually prelude to a recession).
The market expects the Fed to lower rates later this year making existing longer-term bonds more valuable.
You can get Treasury bills at auction from Fidelity or http://www.treasurydirect.gov with no commission. Granularity is $1000.
Interest rate seems to be the same (5.2%) roughly but it is not taxable to CA state, so effective rate is 5.6% or so depending on tax bracket. There is no ‘penalty for early withdrawl’, other than brokerage fees for selling before maturity (market is liquid and deep).
It’s astonishing to me that the banks can get away with offering LESS income given that they take private sector risks with the money.
I pulled my money from ING Direct about six months ago (when they paid 4.5%) and put it into Emigrant Direct at 5.05%. I have since considered slightly higher yields elsewhere but it doesn’t pencil out to be worth moving it around.
I have seen more and more banks offer better rates at 6 months compared to longer time frames and I believe they are just trying to attract new customers, knowing that once some people move their money over, it will stay put.
hehe, I transferred from ING to ELoan a few months ago. So far it seems to be good. The only thing I dislike about ELoan is that they take about a week to process deposits. ING only took a day or 2, 3 days at most.
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