The economy seems to be chugging along, with the financial headlines touting mostly good news from U.S. companies.
Today alone, news rolled out that Intel (Stock Quote: INTC) and Disney (Stock Quote: DIS) had surpassed quarterly earnings expectations for the last quarter. Then there’s a report that Google (Stock Quote: GOOG) and Verizon (Stock Quote: VZ) are teaming up to develop an iPad rival. Even Macy’s (Stock Quote: M) returned to profitability in the first quarter of 2010.
So why are bank deposit investors so glum? In a few words, it’s due to lack of confidence. Specifically, there’s a lack of confidence that the economic growth that we’ve experienced so far in 2010 isn’t sustainable. Worrisome events in key foreign bourses like China and Greece are stoking fears among economists and bank investors, who rely on a stronger economy to get interest rates up on certificates of deposits and money market accounts.
Few economists are willing to go public with predictions that we’re returning to the bad old days of 2007, but just as equally, there are few that say the U.S. economy is geared for a boom in 2010 and 2011, either. The consensus is for slow, tedious growth, and that’s just what we’re seeing in bank interest rates these days.
With patience a wonderful virtue these days among bank investors, let’s get on to the deals.
We’ll start with bank CD deals.
One of the best bargains Deals of the Week has found is over at Clear Sky Accounts, one of the younger Internet banks.
Aside from offering a highly competitive savings account rate of 1.5% (compare that to the average 0.217% national bank savings rate this week, as measured by BankingMyWay’s Weekly Savings Rate Tracker) Clear Sky has some solid CD deals, too.
Right now, the bank’s mainstay CDs — the 30-month and 13-month — are offering APYs of 2.5% and 1.5%, respectively. You’ll need a minimum balance of $5,000, but the path to getting the good rate is free and clear (one hang-up: you have to mail in a check to activate the CD).