While October was a poor month for CD rates, as almost all CD rates dropped, from 3-month CDs to 5-year CDs, TotalBank was still able to hang on with its Total e-CDs, to lead in the 3-month category, with a 1.64 interest rate for their online-only CD. CDs with a length of 3, 6, 9 and 12 months also offered a 1.64 interest rate, with a 1.65 APY when investing a minimum of $1,000.00.

Even though TotalBank has participated in the overall drop in CD rates for the month of October, they still continue to lead the way for 3-month CDs with the 1.65 APY they offer at this time. For all of October, 3-month CD interest rates dropped 3 basis points in the industry, which has experienced an overall plunge of 82 basis points so far in 2009.

Along with the fall in interest rates for 3-month CDs in October, 6-month CDs, 1-year CDs, 2-year CDs and 5-year CDs also fell from the month before, with the 6-month CD dropping by 9 basis point in October; the 1-year CD by 10 basis points; 2-year CDs fell by 7 basis points and 5-year CDs were off by 6 basis points.

For the 3-month CD, it fell from 0.64 percent to 0.41 percent for the month of October, one of the lowest levels in 20 years, as measured by a weekly survey performed by Bankrate during that time. 

Still, as measured in this economic climate, TotalBank continues to offer the highest-yielding 3-month CD on the market, which is has done over the last four months.

Long-term CD rates fell faster than short-term CD rates, but even so, they are still standing at record lows.

I would still look at investing in short-term CDs or other short-term investments going forward, as it relates to safety, as long-term, safer investments could and have been getting clobbered in this low-interest rate environment.

So with the money you’re investing to protect and hold, a short-term CD like the 3-month CD offered by TotalBank is a good way to go at this time.

Tags: cds, certificate of deposit, certificate of deposits, saving strategies, short term savings

This entry was posted on Monday, November 2nd, 2009 at 7:05 pm and is filed under reviews. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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