According to my best research, two banks were tied for the highest interest rate for 5-year CDs right now.
- Bank A: 2.25% APR. Penalty for early withdrawl is 6 months interest.
- Bank B: 2.25% APR. "There may be a penalty for early withdrawl"
Wait... what? What does that mean? Nowhere on their website do they say what it means. So I called them up and spoke with their very friendly CSR who explained the penalty is 180 days of standard interest. This is pretty much what I expect and seems to be the industry standard.
Ok, so really my choice is:
- Bank A: 2.25% APR. Being up-front.
- Bank B: 2.25% APR. Making customers work to get the information that any investment book would tell them to get before they invest.
And I let Bank B know that their website needs some editing. https://twitter.com/yesthattom/status/61
Even if they are able to show me where their website has that information, it is too late now. I've sent my millions (well... millions of microcents) to their competitor. (Oh, and if anyone from Synchrony Bank is reading this... the page that needs to be updated is this one.)
My next CD to mature is before the end of the year. If they have the highest APR and have edited their web page, they're back in the running.
NOTE: I'm sure someone is going to point out that I could get a better return with something other than CDs. Actually most of my money is elsewhere. This is my emergency fund which has a month or two expenses liquid and the rest in CDs. All my other investments are managed professionally.