zubs_IHB
New member
I was wondering how come some savings account interest rates have higher interest rates than CD's.
I called my bank today and their savings account interest rate was 0.10% while their CD was 2.59% for 1 year.
Then I looked at my Etrade account and they are offering a savings account with 3.30% interest while their 1yr CD was 1.something%.
How can savings account have higher interest then a CD? CD's you have a penalty for withdrawing early, while savings account you can basically transfer it out anytime. Atleast that is how I understand it.
Thanks in advance for your answers.
I called my bank today and their savings account interest rate was 0.10% while their CD was 2.59% for 1 year.
Then I looked at my Etrade account and they are offering a savings account with 3.30% interest while their 1yr CD was 1.something%.
How can savings account have higher interest then a CD? CD's you have a penalty for withdrawing early, while savings account you can basically transfer it out anytime. Atleast that is how I understand it.
Thanks in advance for your answers.