Gold, I-Bonds, CDs & Savings Account Rates

Gold (chart and Quote) is going crazy! 

• Gold made an all time new high today of $1,818.90 per ounce!
• If you want to buy gold for your portfolio as an investment or to trade , my recommendation has been to buy the exchange traded fund, GLD (chart and quote).  This is the same advice Bob Brinker gives.  Most other methods to buy gold involve high expenses.
• Note: I own gold and silver coins and misc jewelery but currently don't hold GLD. 

Buy i-Bonds: New Series I Bond Rate:

• Now yielding a 100% safe 4.60%, I think Series I-Bonds are very attractive for cash in taxable accounts.  You can buy up to $10,000 per Social Security number.  $5,000 from TreasuryDirect.gov and $5,000 in paper form at your local bank.  This is the last year paper iBonds will be sold so get them while you can.
• The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate.  Series I Bonds Explained and 
• Note:  I own a lot of Series I Bonds, some with base rates as high as 3.00%!
  See Earning Rates for Older I-Bonds

Best CD and Savings Rates:   Best CD Rate Survey

Bob Brinker recommends CDs on his show for those who don't want to take any interest rate risk with GNMAs or any other bonds.  That is bonds will lose net asset value if interest rates go up. 

• I'd keep the term to 2 years or less.  Perhaps make a CD ladder with
• a 6-month, 1.05% CD at Nexity Bank
  
• a 1-yr, 1.40% CD at Nexity Bank and
  
• an 18-month, 1.32% CD at Aurora Bank  and
  
• a 2 year 1.45% CD at Aurora Bank

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"Highest CD RatesSurvey" 
as of August 15, 2010

Term	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Vanguard Daily	0.02%	Vanguard Prime Money Market Fund
Vanguard Tax Exempt	0.05%	Vanguard Tax Exempt Money Market Fund
FDIC Daily Savings	1.15%	Best Savings Account Rate Survey
6 Month CD	1.05%	AloStar Bank merging into Nexity Bank
6 Mo US Treasury	0.07%	US Treasury Rate Quote
1 Year CD	1.40%	AloStar Bank merging into Nexity Bank
1 Yr US Treasury	0.10%	US Treasury Rate Quote
18 - Month CD	1.32%	Aurora Bank
2 Year CD	1.45%	Aurora Bank
3 Year CD	1.98%	Security Service CU
4 Year CD	2.07%	Melrose CU & 2.06% @ TAB Bank
5 Year CD	2.57%	Security Service CU
5 Yr US Treasury	0.95%	US Treasury Rate Quote
7 Year CD	3.30%	Security Service CU &  2.75% PenFed CU
10 Year CD	3.00%	Discover Bank
10 Yr US Treasury	2.25%	US Treasury Rate Quote
30 Yr US Treasury	3.73%	US Treasury Rate Quote

 

Survey Best CD Rates

The top CD annal percentage yield (APY) this week is at Discover Bank for a 10-year certificate of deposit currently paying 3.00%. 

With the 10-year US Treasury paying 3.31%, there is little incentive to lock up money for 10 years at banks.   For shorter periods, like one to five years, you do better with bank CDs.  For example, Melrose CU &  Bank of Internet are paying 1.41% for their 1-yr CDs while the 1-YR US Treasury pays only 0.26%.

With rates so low, banks will try to sell you their annuity products. Make sure you read my article: Beware of Annuities.

The table below shows the best CD rates for other terms. If that table is hard to read, then try Very Best CD Rates.

"Highest CD Rate Survey + Current US Treasury Rates" \

Term	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Vanguard Daily	0.06%	Vanguard Prime Money Market Fund
Vanguard Tax Exempt	0.16%	Vanguard Tax Exempt Money Market Fund
FDIC Daily Savings	1.30%	Best Savings Account Rate Survey
6 Month CD	1.11%	Bank of Internet USA
1 Year CD	1.41%	Melrose CU &  Bank of Internet
1 Yr US Treasury	0.26%	US Treasury Rate Quote
18 - Month CD	1.46%	Pacific Mercantile Bank
2 Year CD	1.66%	Melrose CU &1.60% @  Bank of Internet
3 Year CD	2.17%	Melrose CU
4 Year CD	2.42%	Melrose CU
5 Year CD	2.93%	Melrose CU
5 Yr US Treasury	1.93%	US Treasury Rate Quote
7 Year CD	3.00%	PenFed CU
10 Year CD	3.00%	Discover Bank
10 Yr US Treasury	3.31%	US Treasury Rate Quote

Vanguard Money Market & US Treasury Rates shown for Reference  Vanguard Money Market Rates shown for Reference  

With rates so low, banks will try to sell you their annuity products. Make sure you read my article: Beware of Annuities

Historical CD Rates: 
Click charts to see full size images

1-Month CD Daily Chart

6-Month CD Daily Chart

Related information:

• US Treasury Rates at a Glance
  
• World Stock Markets at a Glance

Best CD Rates Survey

The top CD annal percentage yield (APY) this week is at Pentagon Federal Credit Union for a 7-year certificate of deposit currently paying 3.51%.   From my survey of six months ago, this same certificate was paying 4.5%! 

With rates so low, banks will try to sell you their annuity products. Make sure you read my article: Beware of Annuities. 

The table below shows the best CD rates for other terms. If that table is hard to read, then try Very Best CD Rates.

"Highest CD Rate Survey + Current US Treasury Rates"

Term	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Vanguard Daily	0.09%	Vanguard Prime Money Market Fund
Vanguard Tax Exempt	0.11%	Vanguard Tax Exempt Money Market Fund
FDIC Daily Savings	1.40%	Best Savings Account Rate Survey
6 Month CD	1.23%	Aurora Bank
1 Year CD	1.55%	Sallie Mae Bank & 1.50%@ Discover Bank
1 Yr US Treasury	0.29%	US Treasury Rate Quote
18 - Month CD	1.71%	Aurora Bank
2 Year CD	2.00%	Stonebridge Bank & Bank of Internet USA
3 Year CD	2.50%	newDominionDIRECT
4 Year CD	2.92%	Bank of Internet USA
5 Year CD	3.06%	Astoria Federal Savings Bank
5 Yr US Treasury	1.83%	US Treasury Rate Quote
7 Year CD	3.51%	Pentagon Federal CU aka PenFed
10 Year CD	3.50%	Discover Bank
10 Yr US Treasury	3.04%	US Treasury Rate Quote

Vanguard Money Market Rates shown for Reference  

With rates so low, banks will try to sell you their annuity products. Make sure you read my article: Beware of Annuities

Historical CD Rates: 
Click charts to see full size images

1-Month CD Daily Chart

6-Month CD Daily Chart

Related information:

• US Treasury Rates at a Glance
  
• World Stock Markets at a Glance

CD Rate Survey by Term

The top rate for a certificate of deposit (CD) this week is at Pentagon Federal Credit Union (fondly known as PenFed CU) where you can get a 7-year certificate that currently pays 4.00% APY.

For shorter terms, ING Direct has a 1-year CD with a 2.00% annual percentage rate. I bought one yesterday.

The one year US Treasury rate is currently 0.35%.

With rates so low, banks will try to sell you their annuity products. Make sure you read our article: Beware of Annuities

The table below shows the best CD rates for other terms. If that table is hard to read, then try Very Best CD Rates.

CD Rates Survey as of 12/15/09

Term	Date	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Vanguard Daily	12/15/09	0.08%	Vanguard Prime Money Market Fund
Vanguard Tax Exempt	12/15/09	0.13%	Vanguard Tax Exempt Money Market Fund
FDIC Daily Savings	12/15/09	1.70%	Colorado Federal Savings Bank => Full Rate Survey
High Yield MM	12/15/09	1.60%	Bank of Internet USA
6 Month CD	12/15/09	1.55%	UFB Direct
1 Year CD	12/15/09	2.00%	ING Direct
18 Month CD	12/15/09	2.05%	Colorado Federal Savings Bank
2 Year CD	12/15/09	2.25%	Discover Bank
3 Year CD	12/15/09	2.99%	Goldwater Bank
4 Year CD	12/15/09	3.00%	Capital One Direct Bank
5 Year CD	12/15/09	3.35%	Goldwater Bank
7 Year CD	12/15/09	4.00%	Pentagon Federal CU
10 Year CD	12/15/09	3.70%	Discover Bank

Vanguard Money Market Rates shown for Reference

• Easy to Read Best CD Rate Survey
  

==> Current US Treasury Rates as of 12/15/09 <==

TERM	MATURITY DATE	YIELD %
3-Month	03/18/2010	0.04
6-Month	06/17/2010	0.16
12-Month	11/18/2010	0.35
2-Year	11/30/2011	0.85
3-Year	12/15/2012	1.37
5-Year	11/30/2014	2.33
7-Year	11/30/2016	3.07
10-Year	11/15/2019	3.59
30-Year	11/15/2039	4.52

• US Treasury Rates at a Glance
  
  
• World Stock Markets at a Glance

With rates so low, banks will try to sell you their annuity products. Make sure you read our article: Beware of Annuities.

Bob Brinker GNMA Advice - I Like CDs Better

Bob Brinker has taken a lot of calls from his listeners worried about inflation leading to net asset value (NAV) losses for his favorite GNMA fund (VFIIX at Vanguard) when rates soar after inflation returns to a normal level.

Bob's standard answer is you should be willing to accept NAV fluctuation for VFIIX between $9.50 and $10.50.

I think the callers have a valid concern and I am not happy with Brinker's answer.

Today VFIIX closed at $10.71 so a decline in NAV to $9.50 would be an 11.5% loss!

Why take a risk of a 12% loss to get an extra percent or two of interest if you don't have to?

Below is a survey of the CD rates offered by the five largest banks operating in the United States. Current US Treasury rates are also shown to give you an idea of just how low rates are.

I think CDs under the current FDIC limits of $250,000 for each bank are great deals now.

If rates soar in the future, you can pay the penalty (usually one to six months of interest) and get new CDs at the higher rates.

With Bonds, you suffer net asset value (NAV) losses when rates soar that can far exceed 6 months of interest on a 5-year CD that currently only pays 3.44% at Citibank.

To see an easier to read version of this table, click CD Rates at Largest US Banks

Bank	CD Rates - APY in % as of 9/9/09 for $10,000
	6- Mo	1-Yr	18-Mo	2-Yrs	3-Yrs	5-Yrs
Bank of America (BAC)	0.55	0.95	1.00	2.15	2.30	3.01
JP Morgan Chase (JPM) Bought WaMu -Washington Mutual	0.75	1.25	1.50	2.15	2.25	3.00
Citibank (C) aka Citigroup & Citicorp	0.80	1.49	1.98	1.73	2.23	3.44
Wells Fargo Bank (WFC) Bought Wachovia - World Savings	0.30	0.60	1.40 19-mo	2.00 25-mo	NA	NA
HSBC Bank North America - Branch & Telephone Rates	0.45	0.55	0.55 15-mo	0.75	0.75	1.01
HSBC Online Rates	1.25	2.00	2.00 15-mo	1.60
US Treasury Rate	0.20	0.39	NA	0.94	1.51	2.41

With rates so high, don't be suckered by banks offering annuities. Make sure you read the article "Beware of Annuities" so you are well armed before you enter the bank seeking high rates.

Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 141% (a double plus another 41% !) vs. the S&P500 UP at tiny 1.0% vs. NASDAQ down 5.1% (All through 9/13/09)

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Top CD Rates - Survey of Best CD Rates by Term

The top rate for a certificate of deposit (CD) this week is at Pentagon Federal Credit Union (fondly known as PenFed CU) where you can get a 7-year certificate that currently pays 4.00% APY.

For shorter terms, UmbrellaBank.com has a 1-year CD with a 2.15% annual percentage rate.

Last month (8/6/09), NewDominionDIRECT had the best 1-year CD rate at 2.05%

The one year US Treasury rate is currently 0.40%, down 7 basis points from 0.47% last month.

With rates so low, banks will try to sell you their annuity products. Make sure you read our article: Beware of Annuities

The table below shows the best CD rates for other terms. If that table is hard to read, then try Very Best CD Rates.

"Highest CD Rate Survey + Current US Treasury Rates"

Term	Date	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Daily Savings	9/7/09	0.20%	Vanguard Prime Money Market Fund
Tax Exempt	9/7/09	0.21%	Vanguard Tax Exempt Money Market Fund
High Yield MM	9/7/09	2.30%	Tennessee Commerce Bank
3-Month Treasury	9/7/09	0.13%	US Treasury Rates at a glance
6 Months	9/7/09	1.76%	Ascencia Internet Bank
6-Month Treasury	9/7/09	0.22%	US Treasury Rates at a glance
1 Year	9/7/09	2.15%	UmbrellaBank.com
1 Year Treasury	9/7/09	0.40%	US Treasury Rates at a glance
18 - Months	9/7/09	2.15%	MetLife Bank
2 Years	9/7/09	2.50%	Tennessee Commerce Bank
2 Year Treasury	9/7/09	0.93%	US Treasury Rates at a glance
3 Years	9/7/09	2.90%	Intervest National Bank
3-Yr Treasury	9/7/09	1.43%	US Treasury Rates at a glance
4 Years	9/7/09	3.20%	Intervest National Bank & 3.10% at Discover Bank
5 Years	9/7/09	3.50%	iGObanking
5 Yr Treasury	9/7/09	2.35%	US Treasury Rates at a glance
7 Years	9/7/09	4.00%	Pentagon Federal CU
7 Yr Treasury	9/7/09	3.06%	US Treasury Rates at a glance
10 Yr Treasury	9/7/09	3.44%	US Treasury Rates at a glance
10 Years	9/7/09	3.85%	Discover Bank
30 Yr Treasury	9/7/09	4.27%	US Treasury Rates at a glance

• Easy to Read Best CD Rate Survey
  
  
• US Treasury Rates at a Glance
  
  
• World Stock Markets at a Glance

With rates so low, banks will try to sell you their annuity products. Make sure you read our article: Beware of Annuities.