CD Rates Drop Again

Citibank's 5.50% 6 month CD rates just dropped to 5.25% Whereas GMAC Bank has a 5.40% 12 month CD, their rates are better than Citibank at the moment. ING Direct - Don't even ask! E-Loan has a 5.75% 18 month CD with a $10k min.

As far as savings accounts are concerned in my book E-Loan leads the way with 5.50% and GMAC bankl follows with a 5.25% and coming in third is HSBC DIrect with 5.05% and Citi's 5.00% e-savings account is fourth.

With falling CD rates and no sign of any rate hikes it might be the time to lock in any good rates for a longer period. It has been said that we might see some drop in the prime rate next year which means that we will see a drop in the online savings accounts and CDs.