Comments on: Best CD (Certificate Of Deposit) Rates http://www.moneybluebook.com/best-cd-certificate-of-deposit-rates/ Personal Finance Beyond Credit Cards and Balance Transfers Fri, 19 Mar 2010 22:40:09 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Chuck http://www.moneybluebook.com/best-cd-certificate-of-deposit-rates/comment-page-1/#comment-91797 Chuck Mon, 24 Aug 2009 14:20:57 +0000 http://www.moneybluebook.com/?p=8984#comment-91797 I don't doubt that in aggregate, Lending Club lenders are getting close to 9%. However the risk to an individual investor is higher than the aggregate. I put in about a thousand bucks, spread out over 40 loans, but one of my A+ loans defaulted after five months. That cut my 9% rate to about 3% really quickly. Putting Lending Club in a list of CD's is pretty irresponsible. There is no relation between federally insured deposits and unsecured consumer debt, and to imply so is misleading. I assume there are some advertising bucks involved. We are in a slightly deflationary environment right now. A 2% return now is the same as a 5% return with 3% inflation. So if you thought rates were good before, then they're good now. You have to think in real, post-inflation terms to understand the true value of your money. I don’t doubt that in aggregate, Lending Club lenders are getting close to 9%. However the risk to an individual investor is higher than the aggregate. I put in about a thousand bucks, spread out over 40 loans, but one of my A+ loans defaulted after five months. That cut my 9% rate to about 3% really quickly.

Putting Lending Club in a list of CD’s is pretty irresponsible. There is no relation between federally insured deposits and unsecured consumer debt, and to imply so is misleading. I assume there are some advertising bucks involved.

We are in a slightly deflationary environment right now. A 2% return now is the same as a 5% return with 3% inflation. So if you thought rates were good before, then they’re good now. You have to think in real, post-inflation terms to understand the true value of your money.

]]> By: Darren http://www.moneybluebook.com/best-cd-certificate-of-deposit-rates/comment-page-1/#comment-91630 Darren Sun, 23 Aug 2009 23:34:03 +0000 http://www.moneybluebook.com/?p=8984#comment-91630 Not sure if cd rates are worth it these days. Interest rates are currently at historical lows and unless inflation becomes an issue, Ben Bernanke's Fed isn't going to be raising rates anytime soon. 2% is a horrible rate, but I guess in this recession it's the best we got. I checked out Lending Club...I'm somewhat skeptical of the claim that investors are averaging 9.60% in interest payments. Is it some ponzi scheme and how do I ensure that my money is fully insured from theft or fraud? Not sure if cd rates are worth it these days. Interest rates are currently at historical lows and unless inflation becomes an issue, Ben Bernanke’s Fed isn’t going to be raising rates anytime soon. 2% is a horrible rate, but I guess in this recession it’s the best we got. I checked out Lending Club…I’m somewhat skeptical of the claim that investors are averaging 9.60% in interest payments. Is it some ponzi scheme and how do I ensure that my money is fully insured from theft or fraud?

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