| Term | Rate |
| Money Market | .275 |
| 3 Months | .250 |
| 7 Months | .275 |
| 13 Months | .225 |
| 16 Months | .350 |
| 2 Years | .325 |
| 3 Years | .425 |
| 5 Years | .500 |
This table makes little sense to me. Money Market pays more than a 90 day CD? Seven, thirteen, and sixteen month terms? 125 basis points for a delta of three months on the 13 month CD. One hundred basis points for an extra year off the 2 year CD BUT only 75 basis points for two more years off the 3 years CD.
And, they make no effort to teach their Customers about a CD ladder and eliminating interest term sensitivity on your “mad money”. ANd minimizing interest rate risk.
(Ohh you don’t understand that concept? You should always have an emergency fund of some number of months of your run rate. Then a base of savings. Then investments. In your ‘savings tier’, how could you always be earning the Five Year CD rate? Yup, five five year CDs with different maturities. You can always get it by paying a small penalty. How do I do that? Each year on your birthday, you scrape up all your change and go get a Five Year CD. On your sixth birthday, you roll it over and add a little to it. You are an adult; aren’t you? When you get to 20k$, you move it to a different bank. FDIC insurance 100k. What do you think pension funds, insurance compnaies, and brokerages do?)
Now, we all know why I’m not running a bank! I’d try and use my ad dollars to explain how to ‘save’.
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Reinke Faces Life 