Lock in 4.00%+ CD Rates While You Can

Words of Wisdom this week from Bankaholic.com -- CD Rates are going down.

Ben Bernanke and all the other clowns at the Federal Reserve are meeting on March 18, 2008 to cut interest rates AGAIN.

Be warned that futures traders are considering the possibility of a full 1.00% cut.

I kid you not. Per this article on Bloomberg.

“Interest-rate futures show a 10 percent chance the Fed will cut by 1 percentage point its overnight target lending rate between banks to 2 percent next week. The rest of the bets are for a 75 basis point cut.”

Personally, I am expecting a 0.75% cut, but with this 2nd wave of foreclosures and more bad news looming, there is a chance that the Federal Reserve is desperate enough to cut a full 1.00%. CRAZY huh?

Say Good-Bye to 4.00%+ Interest Rates
I’ve been talking daily with managers at online banks, and many have already preemptively cut deposit rates. From the banks I polled, they are all expecting a 75 basis point cut as well.

Right now, WaMu is still holding strong with their 4.00% online savings account. However, it is highly unrealistic that they will be able to hold this rate after March 18, regardless of whether rates are cut 0.75% or 1.00%.

Lock in 4.00%+ Rates with Certificate of Deposit Accounts
My contact at WaMu tipped me off about a “flexible 9-month 4.00% CD” promotion that they are currently running in brick & mortar branches. Basically, you can get 4.00% APY for 9-months guaranteed, and you can deposit additional funds to your account over time. However, like traditional CDs, you cannot withdraw early.

I’ve verified this at a few Southern California WaMu branches, and they say this promotion expires March 28.

For those who want to lock in rates long term, Indymac Bank is running a 4.05% APY 12 month -or- 18 month CD account promotion.

If you’ve been on the fence about opening a CD, I strongly urge you to do it now before March 18! Use Bankaholic’s CD rate table to find a bank suitable for you.

It will be a long and painful ride as we delve deeper into these troubled financial mess. I’m just as angry as you are about the country’s irresponsible monetary policies. Unfortunately, we cannot do anything about it except educate ourselves and adapt. Dump the US dollar. Stay out of debt. Protect your wealth in hard assets and commodities

Article found at http://www.bankaholic.com/