Sovereign bank has a deal for those who are interested in still investing in Bank CD’s despite the economy. Since the Feds have no reason to raise interest rates with no inflation, then the banks also have no reason to raise their rates.
But with that in mind, some banks are still showing up once in a while from the pile with a great bank deal. As with the latest from Sovereign Bank who is offering a equity index CD package called the Save & Invest CD Package.
How does it work you may be asking? By combining a standard 6-month CD which has a solid rate at this point in time of 2.25% APY and a 3-year equity index CD. It is required that you put in an equal amount of money to both accounts. The Invest CD first off is based in the S&P which might make you a little uneasy, but that is why you have 2 split CD’s. If the S&P is higher from 1-3 years then you can earn as much as 3% on your CD.
There is a minimum deposit of $2,500 which must be placed into both account as was mentioned. this means for those who do not have at least $5000 to invest, this bank cd is not going to be worth your time looking into. For those who are look for the current best cd rates then you will want to put this as an option on your list for a safe investment.
