April 2019 Update – With the Fed on Pause, Here are 5 Savings and CD Products to Consider
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April 2019 Update – With the Fed on Pause, Here are 5 Savings and CD Products to Consider

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The Fed’s March meeting ended with guidance that it is going to keep the Fed Funds rate on hold until at least early 2020 and the Trump Administration is actively campaigning for an immediate reduction in the rate in order to fight off an inverted yield curve.  

Against this new reality, those who have cash that they aren’t going to need for a while might want to consider CDs.

Here are some products that we find particularly compelling:

1.  Colorado Federal Savings Bank – 2.86% 1-Year CD, $5,000 Minimum

CSFB has been around for a while, and while they have never been competitive on the online savings side, their online CDs have been attractive.   After raising their CD rates on March 15, their one-year CD is one basis point above the next highest rate.   Their early withdrawal penalty is 3 months interest.   It is a smaller bank so you should be careful not to go above FDIC limits.

2. CitizensAccess – 2.85% 1-Year CD, $5,000 Minimum

CitizensAccess has gotten positive reviews on BestCashCow since launching in 2018.   Their accounts are easy to open and manage online and the penalty for early withdrawal is also only 3 months interest.  

Check out the best 1-year CD rates here.

3.  Purepoint – 2.60% 13-Month No Penalty CD, $10,000 Minimum

Even with the change in the Federal Reserve’s disposition, many are hesitant to lock their money in for a year.  We recently recommended, therefore, that people take a new look at No Penalty CDs.   Within the No Penalty CD space, Purepoint’s 2.60% 13-Month No Penalty CD is the most attractive.   It represents at least a 10 basis point premium on the best savings accounts (and a 25 basis point premium on Purepoint’s savings account) and does not have the liquidity risk of CDs.  

Check out other No Penalty and Special Term CD rates here

4.   My Savings Direct – 2.40% Savings Rate, $1 Minimum Balance.

My Savings Direct is owned by Emigrant Bank.   While Emigrant has disappointed customers by lowering rates and playing games in the past, they have held their savings rates constant for the last few months and may have moved beyond their past games.   For now, their rate is one of the best rates available online with no minimum balance.

5.    CIBC Bank – 2.39% Savings Rate, No Minimum Balance

CIBC is one of Canada’s largest banks and launched its US online bank in late 2018.  CIBC was among the first to raise their rates when the Federal Reserve raised the Fed Funds to its current level in December.   Given that they are a new entrant to the space and eager to gain a foothold in the US online savings market, we think that they will be among the last to lower rates if the Fed really begins to change course through 2019.  The bank’s online savings account has no minimum balance.

See and compare all of the best online savings rates here.

Have a great month.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.


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