Consumers compare bank rates when they intend to deposit their money in a commercial bank. This article would help the reader to get a precise idea on the different bank rates offered by banks.Comparing bank rate becomes important for a person when he/she is required to deposit his/her hard earned money in a particular bank account.
Every rational consumer is required to compare bank rates before choosing a bank for keeping his money.
Bank Rates � Types:
Bank rates are basically of two types:
- Certificate of Deposit Rate (or simply, CD Rate):
Certificate of Deposits are a type of savings certificate which entitles its bearer in receiving interest on the amount of deposit. These interest rates are fixed in nature. Maturity term for these certificates vary between 1 month and 5 years.
- Bank rate for Savings Account and Money Market:
Commercial banks generally offer its customers with a fixed bank rate on the total deposits of that particular customer in its savings account.
Bank Rate Comparison:
Different banks offer different kinds of bank rates to its customers for alluring them under its fold. A customer generally compares these rates before keeping his money either in the savings bank or CD of a specific commercial bank.
Attractive Bank Rates offered by some of the leading banks of America are as follows:
- CD Rates:Countrywide Bank:
- It offers its consumers with the most lucrative interest rate or Annual Percentage Yield of 4.05%. For availing this facility, the customer has to deposit a minimum amount of 10,000 US Dollars in the bank’s CD for a period of 6 months.
- Flagstar Bank’s CD is offering its customers with an interest rate of 3.91% on a minimum deposit amount of five hundred US Dollars only. The maturity term for this CD is 6 months.
- Certificate Deposit of GMAC is offering an APR of 3.60%. The minimum amount of money required for buying this CD is US$500 and matures after a period of 9 months.
- CD rate offered by Discover Bank is 3.51% on a minimum deposit amount of US$50,000. Its maturity term length is 9 months.
- Savings Bank Account Rate:Flagstar Bank:
- This rate is 4.25% on a minimum deposit of US$100,000.
- It is offering a savings rate of 4.05% on a minimum deposit amount of ten thousand US Dollars.
Countrywide Bank, Flagstar Bank, GMAC, Discover Bank are the banks that offer the best CD rates to its customers. In case of Savings Bank Account Rate, Flagstar Bank and Countrywide Bank are the best in the market.
Last Updated on : 30th July 2013