Many who invest in simple savings use the popular certificate of deposit as a way to get higher returns. Today, we here at Peak Personal Finance are going to look at how Bank of America CD rates are performing as part of our quest to find the best CD rates.
Bank of America is one of the largest banks in the United States. It has been doing well despite a major crisis during the financial meltdown. The ban k offers some of the best CD rates and has plenty of investment options. There are two avenues of investment in CDs. One is through the general CD account and other is the IRA option.
Bank of America CD rates for the fixed high yield CD are as follows. The bank requires a minimum investment of $5,000 for CD and $2,000 for IRA accounts.
Bank of America certificate of deposit rates for a 1-year high yield promotional CD are 0.90% APY for general CD and 1.35% APY for IRA investment.
BoA CD rates for a standard investment of 1-year will yield 0.85% APY whereas the 6-month investment is calculated at 0.35%. An 18-month investment will yield 0.95% whereas a 2-year investment will return 1.35%. A 3-year investment return 1.86% and a CD of 4-years will yield 2.25%. A 5-year CD yields the highest APY of 2.51% but the bank also offers a 10-year CD with an APY of 3.51%.
IRA investments yield the highest APYs at 3.76% for a 10-year investment. IRA also yield 2.75% for a 5-year investment and 2.51% for a 4-year CD.
The bank imposes penalties on early withdrawals and this rule is applied across all investments, including IRA investments. The bank can also limit the total investment amount to be less than $500,000 under special circumstances.
