The average savings account rate is now paying 0.21% APY while the average online savings account rate is yielding 0.80% APY. Those looking to gain a bit of extra yield without locking in their money for too long can look to 2-year CDs. There are many 2-year CD paying in the 1.40% - 1.50% APY. I looked for rates above that and found Western Heritage Bank in New Mexico. They are offering a 24-month CD that pays 1.75% APY with a small $1,000 minimum balance.
Western Heritage has two locations in Las Cruces and Deming, New Mexico. The bank was originally founded in 2000 as Mesilla Valley Bank and changed its name to Western Heritage in 2008 after a group of investors purchased it. Western Heritage has a Texas Ratio of 20.98%, close to the national average and its assets have grown from $27 million in 2006 to $71 million today. The bank's return on equity of 5.58% shows that it is profitable, although it is not as profitable a bank as the national average. All deposits at Western Heritage are FDIC insured.
The bank also offers an attractive 60-month CD paying 2.75% APY, which is one of the highest in the nation. The bank is very community based and only takes deposits from the Las Cruces and Mesilla Valley.
Is 1.75% APY a great rate - no. But it's the best of the worst. For those that need to keep their money safe and don't want to lose principal, stashing cash in the bank may be the only option.
If you don't live in these locations and want to find the highest rates in your area, visit our local CD rates page.
New - Email Rate Updates for BestCashCow Readers
Users can now register to receive the best bank rates via email every Monday. You can choose to either receive the best rates for banks across the country, or you can receive the best rates for your state. You can cancel delivery at any time and also login to change which product rates you receive for which state. This email service is free. You can register for the service here.
I hope to eventually also have the weekly rate updates go out via this email service.
Previous Weekly Rate Deals
- January 9, 2012 - Navy Federal Credit Union Offering 3.00% APY 20-Month IRA CD
- January 5, 2012 - Consumers Credit Union Offers 4.09% APY Rewards Checking Account - Nationally Available
- December 29, 2011 - Aflac Federal Credit Union Offering 2.41% APY Savings Account
- December 19, 2011 - CIT Bank and Its 1.15% APY 12-Month Achiever CD
- December 12, 2011 - Citizens State Bank of TX Offering 2.85% IRA CD
- December 5, 2011 - Digital Federal Credit Union Offering 2.86% APY CD - Nationally Available
Check back next Monday for a new bank deal. Email any deals you know about to ratedeal (at) bestcashcow.com. Feel free to also share them below. If you're a bank and have a great deal not listed on BestCashCow, register for access and add the deal to the site.
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