Competitive Current CD Rates for deposits over $5000 Quoted at St. Louis Bank
St. Louise Bank offers fairly competitive rates for deposits over $5000. Their 60-month CD for this deposit value yields to a generous 3.51%; their 48-59 month deposit sits at 3.30%; their 36-47 month sits at 3.20%; and their 24-35 month at 3%. These are among the highest CD rates quoted this year, considering the economic climate. Within this week alone, competitor banks have dropped their special CD rates by at least 0.5%. It’s safe to say that investing this early in the year is a wise decision as CD rates in general are bound to drop by the middle of 2009.
Naturally, the longer you keep your money with the bank, the higher APYs are offered. Although these rates are among the top CD rates quoted this year, they’re not necessarily bonus points for loyalty. You should always check you CD’s APY and interest rates against the projected inflation rates of the year. Should the USD value drop against other currencies, the APY is your only insurance that your money-in-the-bank stays well within its principal currency value from the date of deposit to maturation.
You need to enter into a CDAR Deposit Placement Agreement with the St. Louise Bank before you can open a CD account. Deposits of up to $50 million are eligible got insurance under the FDIC. Within the deposit agreement, you must indicate whether you want to receive the monthly interest accrued by your investment, or the compounded amount by the end of the term. Most depositors choose the latter when they go into long term CDs like these ones.
The bank doesn’t offer online applications. You will have to visit one of their branches to open an account. The bank’s main office is in Town and Country Missouri. For information about membership requirements, contact their costumer service representative at 314-851-6200.
The only downsides to these offers are the bank’s soundness ratings. It scored 2 stars (below peer group) from Bankrate.com, and 3 stars (adequate) at BauerFinancial. Rest assured, though, that your money is still safe because like all private banks, St. Louise has been insured with the FDIC since 2005 with FDIC Certificate #58081
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