Seems like a good time to open a CD
By Lena Kovadlo
@lovebuglena (52149)
Staten Island, New York
November 9, 2022 12:33pm CST
Some banks are offering 4% interest on CDs (certificate of deposit) if you get one for a year. Don’t remember the last time they’ve been this high. Some offer even higher rates if you get longer-term CDs.
Perhaps it’s a good idea to open a CD. Certainly pays more than a regular savings account does. I don’t think I’d get one for more than year since you can’t withdraw the money until the term ends. At least not without paying a penalty for early withdrawal.
Now I’m curious to know what’s the difference between an online CD and one you open at a bank? Any ideas?
6 people like this
6 responses
@LindaOHio (222285)
• United States
10 Nov 22
4% is excellent compared to the nothing that regular savings accounts are getting right now. I think an online and bank CD are one in the same. I prefer dealing with a bricks-and-mortar bank.
2 people like this
@lovebuglena (52149)
• Staten Island, New York
10 Nov 22
Capital One is a physical bank but they have an online CD.
2 people like this
@LindaOHio (222285)
• United States
11 Nov 22
@lovebuglena Sounds like a good deal.
2 people like this
@lovebuglena (52149)
• Staten Island, New York
11 Nov 22
@LindaOHio went to a Capital One branch and waited for probably an hour to finally get an employee to approach us, only to find out we have to make an appointment to see a person to open an account. We were told it’s the same in all branches. We can open an account ourselves online if we want. Maybe that’s what we will do.
2 people like this
@kaylachan (84711)
• Daytona Beach, Florida
9 Nov 22
Apart from doing everything online, including digital signers, I don't know. There's a lot of online banks out there, that have physical mailing addresses, but everything's basicallyy done on online.
1 person likes this
@lovebuglena (52149)
• Staten Island, New York
9 Nov 22
Capital One bank CD seems to be an online CD. We actually have accounts there. Wonder if it’s better to open a CD at a branch or just do it online, which supposedly takes 5 minutes.
1 person likes this
@RebeccasFarm (91299)
• United States
26 Nov 22
Yes it does seem like a good time..will you open one?
I want to know why have i missed all your discussions.
1 person likes this
@RebeccasFarm (91299)
• United States
26 Nov 22
@lovebuglena Well yeah but gee I would check in now and again.
2 people like this
@lovebuglena (52149)
• Staten Island, New York
26 Nov 22
We did not open one. I told hubby we should but he just shrugged.
1 person likes this
@lovebuglena (52149)
• Staten Island, New York
26 Nov 22
Not sure why you missed many of my discussions. Were you away a while?
1 person likes this
@lovebuglena (52149)
• Staten Island, New York
10 Nov 22
I don’t remember how much our last CD paid but I remember when we opened our savings account in Capital One after we got married in 2016 it paid us 2%. Since then it went down to .2%. Still better than Chase pays. Theirs is probably .02% or something close to that. If that’s the case may as well be 0.
1 person likes this
@db20747 (43419)
• Washington, District Of Columbia
10 Nov 22
@lovebuglena for the past ten years most have been .03 or less. 5 precent is a miracle
1 person likes this
@porwest (112780)
• United States
14 Nov 22
It is a good time. Agreed. Although even at 4% it's not a "great" rate, but certainly better than they have been in the past. Still not even close to beating inflation. But secure. I have some money in CDs. Not a lot. But some.
As for any difference between an online CD or bank CD, they are all the same. The ONLY thing to make sure to look for it that the issuing facility is FDIC insured.
@lovebuglena (52149)
• Staten Island, New York
14 Nov 22
4% is way better than .05%, if not .02%, that Chase pays for a savings account. If you're gonna offer such low rates why give them at all? May as well pay 0%. Why is it that Chase offers ridiculously low rates when it's one of the top banks?
1 person likes this
@lovebuglena (52149)
• Staten Island, New York
17 Nov 22
@porwest We do not have Ally bank in NYC.
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@porwest (112780)
• United States
16 Nov 22
@lovebuglena Regular savings accounts have never offered attractive rates. I have always recommended to people to ONLY maintain a regular savings account for emergency funds and quick access cash. Any other money should be invested in higher yield vehicles.
Even at that, I use Ally which right now pays over 2% on a regular savings account, and while I do not have instant access to the money, I can have it in a day or two.
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