cd rates
Sun Cities Financial Group is advertising 5.85% apy for a 12 month CD with a min $15,000 deposit, FDIC insured. Any downside to this? Their offer expires 5/12/23.
Terry Says
There’s a “catch” here — but at the moment I can’t figure it out. If I get time, I will call them.
It’s probably in the compounding (is this compounded daily?) Or there may be some other requirement at maturity. Nothing shows in print on their website.
But I am a strong believer in “if it’s too good to be true, it’s not true!” My instincts tell me that is the case here! That rate is too high. If they keep paying that for money, and think they can make a profit, then they must be making risky loans!
You can get just under 5% on a 1-year Treasury bill with complete safety (and no state income taxes on the interest.)
Read this: https://www.terrysavage.com/t-bills-beat-cds/
