CD and high-yield savings rates for June

June 1, 6:17 AMSeattle Personal Finance ExaminerSteve Juetten, CFP®

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Last month regular readers of this column learned about MoneyAisle.com, a website with a mission:

to provide consumers free access to great rates on CDs and High-Yield Savings accounts by having banks compete in live, real-time, instantaneous auctions

 

All MoneyAisle.com CDs and high-yield savings rates are from FDIC banks. Here is a snapshot of the rates for a $10,000 CD auction for my zip code in Washington.

*Annual Percentage Yield; some conditions may apply so you need to read the actual offer from the participating bank for details

For comparison purposes, MoneyAisle.com shows a high-yield savings rate of 2.30%. Notice that if you lock up your money in a two-year CD instead of a one-year CD, you receive only .0005 more yield. Not much of an advantage for taking on 12 months of interest rate risk (the chance that interest rates will rise and you'll be stuck with a lower interest rate on your CD until it matures).

Compare what you're earning on your short-term cash savings to these rates and you can decide if you're getting a good enough return. If you're not, go to MoneyAisle.com and see if you can do better. In these days of very low interest rates, a percentage point or two of return might be important to you. If you use MoneyAisle.com, you must read the disclosure information under the "About Us" tab on the home page. There you'll find information about terms of use, privacy and security.