Bank of America CD Rates

As you’re looking for the best IRA rates, compare them to Bank of America CD Rates. This gives you an idea of what the market rate of return is for these types of investments.

CD rates and fixed-term IRA rates fluctuate on a daily basis, just like the stock market. The rate that you’re paid depends on the rate that the banks get paid.

When interest rates are higher, banks earn more money from the money they lend out. In turn, they pay you more for the money you let them hold. But when interest rates are lower, like they have been over the last years, banks charge less to borrowers, and pay less to savers.

Looking at Bank of America CD rates gives you a sort of gauge on the average return you can get from a CD, since BofA is one of the biggest banks in the country. You can see their rates as of today by clicking here.

Usually you can find somewhat higher rates from other banks. A great place to shop interest rates is BankRate.com. Be careful though, because if you give your information, you’re likely to get phone calls and/or emails from vendors.

From the homepage, click on ‘CDs and Investments’.

Bank of America CD rates vs. it's competition

‘High-yield CDs’ is automatically selected, so just click ‘Go’, and then choose your term. (This is the amount of time you are willing to leave your money in the CD.)

Bank of America CD rates and terms

Click ‘Next’ and that’s it! A whole list of the CD rates available.

The highest-yielding CD as of the time of this writing (March 1st, 2008) was 3.6%. That’s compared with Bank of America’s 3.35%. Both of which are pretty weak, due to the Fed’s having slashed rates several times as of recently.

BUT (and it’s a big butt), you can use your cash to buy Bank of America stock (ticker: BAC) and collect a 6% dividend yield. Hmm. Of course, CDs are much more conservative. They’re insured by the FDIC.

I like Bank of America stock, though. I think they’re a solid company, and I own some. I’m collecting 6% in dividends and it has the potential to go up (or down). Read the analysis on BofA. [Coming Soon]

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