Is this usual for CD's at banks??

[143tbone]

i just noticed some fine print on my bank's website:
"TIME CERTIFICATE - VARIABLE RATE***
(At our discretion, we may change the interest rate on your account.)

[sabbat hunter]

1. depends on the CD

and the bank
dont chose that CD or bank. others offer fixed rates.

[143tbone]

6. It says it IS a fixed rate yet they also say they can change it.

What gives? I'm just not trusting my Vanguard MM and IRA and am looking around for somewhere temporarily to put some money that is FDIC insured(for the most part).

[A HERETIC I AM]

2. Can you post a link to the page?

I'd be interested in reading it.

And no, it isnt typical, but not unheard of.

[143tbone]

5. the link

http://www.kitsapbank.com/bbc/brates.htm

[rhett o rick]

3. Here's one to watch for. I don't want to name the bank but initials are Bank of America.

When you buy a CD and you want the best rate, you get their "special deal". When the CD expires and you let it "roll over" you get the standard deal which is not very good. To get the "special deal" again, you have to call them up and negotiate. Some people mistakenly think they get the "special deal" by letting the CD roll over. My credit union doesn't have no stupid "special deal". Their standard deals are as good as BOA special deal. So at my CU i can let my CDs roll over and get a good deal w/o having to keep track and negotiate each and every time.

[napi21]

4. From what I understand, it depends on the CD you chose.

ie: I was looking for some investment that paid more than the dispicable rate savings accounts are paying now, but still keep access to the $$ without penalty. My banker told me about a 7 day CD that is a variable rate based on the Fed rate and renewes every 7 days. After the first 7 days, you can cash it out or any part of it without penalty. I'll never become wealthy with them, but it's a lot better than the savings accounts. The rate when I bought the CD was 3.2%. The rate on the savings account was .025%!!!! I was also offered fixed rate CD's but they weren't much higher in rate and they tied your $$ up for 6 months to 5 years.

[A HERETIC I AM]

7. What you're describing sounds like an Auction Rate Security.

http://en.wikipedia.org/wiki/Auction_rate_security

[napi21]

8. All I can tell you is that I have a "certificate of Deposit" here in my hand.

It doesn't mention anything about any other business than my bank's name and the amount of interest that will be added back to the CD upon maturity.