March 2019 Update - 5 Savings and CD Offerings to Check Out

We are pulling through the winter, and savings and CD rates are continuing to firm, but are not moving dramatically higher as the Fed now seems intent to hold the Fed Funds rate at 2.25% to 2.50% until later in the year.

Here are 5 products that we find particularly compelling:

1. CIT Bank Savings Builder – 2.45%, Requires $25,000 Balance or $100 plus an additional deposit of $100 a month

CIT Bank’s reviews are largely favorable and their rate is very attractive. BestCashCow has named CIT as one of our best bets for 2019 so we think it will remain competitive. There are two ways to qualify for the savings builder account – either to maintain a $25,000 balance or to open the account with $100 and deposit at least $100 during each monthly measurement period (between the 4^th day of each month until the 4^th day of the following month).

2. CIBC Bank – 2.39% Savings Rate, No Minimum Balance

CIBC is one of Canada’s largest banks and launched its US online bank in late 2018. Their 2.39% savings rate is aggressive, and they have been among the first to raise their rates when the Federal Reserve raised the Fed Funds to its current level in December. To boot, the bank’s online savings account has no minimum balance.

3. My Savings Direct – 2.40% Savings Rate, $1 Minimum Balance

My Savings Direct is owned by Emigrant Bank. An account here bears certain risks and disadvantages that are well known to anyone who has followed the online savings space and Emigrant’s strategy. We highlighted these in our February newsletter. But, until and unless these risks materialize, the rate is attractive at 2.40%.

See and compare all of the best online savings rates here.

4. Purepoint – 2.60% 13-Month No Penalty CD, $10,000 Minimum

We have been hesitant to recommend CDs with rates rising, but we have also spoken very highly of the benefits of No Penalty CDs. With that in mind, Purepoint’s 2.60% No Penalty CD, introduced earlier this week, is startlingly attractive. It represents a 15 basis point premium on the best savings accounts (a 25 basis point premium on Purepoint’s savings account) and does not have the liquidity risk of CDs. We think this product is a very attractive alternative to a savings account at the moment.

5. Live Oak Bank – 2.85% 1-Year CD, $2,500 Minimum

Many are looking to short-term CDs to pick up yield and Live Oak’s 1-Year CD is one of the highest yielding and safest ways that we see to do it. The penalty for early withdrawal is only 3 months' interest and the minimum balance is only $2,500.

Check out the best 1-year CD rates here and see long-term CD rates here and special rate CDs here.

Have a great month.