Bank of America is offering a special online only rate on high yield CD IRA, which has a combined guaranteed return of a CD with the tax advantages of an IRA.
As of December 13, 2009, Bank of America’s high yield CD IRA is at 1.35%APY for a 12-month term. The rate is available in Roth, Traditional and Rollover IRAs with $2,000 minimum opening balance. It also automatically renews and accepts additional deposits at maturity. What’s more important is that it is FDIC insured to the maximum allowed by law.
Bank of America’s high yield CD IRA rate however showed a continued decline. In April 2009, the bank’s high yield CD IRA rate was 2.85%APY. To date, it is only 1.35%APY, a difference of 1.50%APY.
Update January 16, 2010:
Bank of America’s special online-only high yield CD IRA rate is down to 1.25%APY.