Certificate of deposit investors are finding it harder and harder to find CDs that are paying high enough interest rates to be worth the investment. EmigrantDirect.com, which is the online banking branch of the New York based Emigrant Bank is changing the way that CD investors look at their CDs, by offering certificates of deposit that are paying interest rates that are higher than the national average.
Certificates of Deposit Rates
Emigrant Direct offers certificates of deposit with their “My Way” account. The certificates of deposit with maturity dates that fall between 16 and 40 months are currently earning an annual percentage yield (APY) of 1.5 percent. The five and ten year certificates of deposit are earning an even higher annual percentage yield of 2.5 percent. Longer term maturity certificates of deposit, those extending from 41 to 59 months are currently paying an annual percentage yield of 2 percent. There is a $1,000 minimum deposit for all of the certificates of deposit.
CDs are FDIC Insured
The certificates of deposit accounts offered by this institution are insured by the Federal Deposit Insurance Corporation (FDIC), protecting investors for up to $250,000 per account. This is common among banking institutions, but what makes the Emigrant Direct account different is that the bank also offers its own FDIC insurance protection for certificates of deposit accounts of up to $1,250,000.
While you would have to open five certificate of deposit accounts at regional banks to obtain coverage for $1.25 million, one account will do it for you at Emigrant Direct. In addition to certificates of deposit, the online bank is also offering checking and savings accounts.
Certificates of Deposit Account Highlights
With the account offering short-term and long-term maturity dates, the account can be modified to fit your investing and cash flow needs. This occurs without having to sacrifice on the annual percentage yield, because you’re getting the highest rates currently getting paid in the nation. You can choose your term, deposit as little as $1,000, receive FDIC insurance and earn more money. It’s the Burger King of the certificates of deposit world.
When it comes to depositing your money into certificates of deposit, all hope is not lost. The lesson to be learned is that even in a declining interest rate market, there is always a way to find a financial institution that pays higher annual percentage yields than other banking institutions. It’s not to say that the My Way account offered by Emigrant Direct is right for all types of investors, but it should give you hope that there is a certificate of deposit account out there just for you.
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