Competition For Your Money Finally Picks Up

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Following the Fed's movement of the Fed Funds rate to 50 basis points last week, we are finally seeing competition for your hard earned cash. Here are a couple of neat offers that caught our eye.

Here are some neat offers that have just come to market that may indicate that the long period of low interest rates may be ending, and competition among banks for your money may be picking up.

Savings Bonus – Up to $200 from CIT Bank

CIT Bank is offering depositors up to a $200 bonus for funding a savings account with new money between now and the end of 2016. You can learn more about this offer here. BestCashCow finds this offer particularly attractive as discussed in this article, especially as CIT Bank always has outstanding customer reviews.

CD – 11-Month No Penalty CD from Ally Bank

Ally Bank is offering depositors an 11-Month No Penalty CD paying 1.25%. The rate is not particularly compelling as we have seen 1-year CDs paying 1.25% and over for some time now (see the best one year CDs here). What is attractive about this offer, however, is that the CD can be terminated without penalty at any point following six days of opening. Quite simply, there is no reason not to move your cash on deposit in an Ally savings account to their 11-Month No Penalty CD, even if you think you might need to access the cash over the next 11 months.

Online 2-Year CD Rates Cross 1.50% and Credit Union 5-Year CD Rates Cross 2.50%

A handful of online banks have begun to offer 2-Year CD rates over 1.50% (see the banks and rates here). More than a handful of federal credit unions are now offering CD Rates over 2.50% (the credit unions which you can access may vary according to where you live, see the 5-year credit union rates where you live here). BestCashCow does not currently recommend locking into CDs that are longer than 1-year in duration as we anticipate dramatically higher rates in 2017. It is nonetheless very encouraging to see banks begin to offer compensation for time deposits that have been better than anything we have recorded in over a year.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to bank transparency and the climate crisis. Since co-founding BestCashCow 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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