GOtalkmoney Blog

A large percentage of Americans believe that the agreement to raise the debt ceiling and cut the federal deficit will make the economy worse. A USA Today/Gallup Poll taken just hours after President Obama signed the deal found that 46 percent of people disapproved of the agreement, compared with 39 percent who approved.

The poll found that 41 percent said the deal will make the economy worse and 17 percent said it will make it better. About a third of those surveyed said the agreement won’t really matter. Along party lines the poll found that 22 percent of Tea Party supporters approved the deal, compared with 26 percent of all Republicans surveyed and 58 percent of Democrats.

Regardless of how you feel about how the agreement will affect the economy it’s a good idea to review your financial strategy. Beefing up your savings is just one way to prepare yourself for more tough economic times. Find ways to put aside more money into an emergency savings account each month so you aren’t caught unprepared if things really do get worse. You can search for the best interest rate offers on savings accounts here.

Discover Bank has competitive CD rates, but you’re likely to earn the most interest with a longer term. If you can invest your money for several years, the bank has a 5-year certificate of deposit with a 2.35 percent annual percentage yield. Other CD rates and terms include:

• 1 percent APY for 9 months
• 1.2 percent APY for 1 years
• 1.3 percent APY for 18 months
• 1.4 percent APY for 2 years
• 1.5 percent APY for 30 months
• 1.75 percent APY for 3 years
• 2 percent APY for 4 years
• 2.6 percent APY for 7 years
• 3 percent for 10 years

When you open a Discover Bank certificate of deposit you need an initial minimum deposit of $2,500. CD rates are subject to change at any time without notice. Interest earned on CDs can be accumulated in the account or transferred to another account. Withdrawing interest by check results in a $5 charge per check.

Early withdrawal of funds from your account results in a penalty of 3 months’ simple interest on the amount withdrawn for terms of less than a year, 6 months’ interest for terms of 1 year to 5 years, and 9 months’ interest for terms of 5 years and up.

U.S. gross domestic product (GDP) rose at an annual rate of 1.3 percent in the second quarter of 2011, which was less than expected, according to the Bureau of Economic Analysis. First-quarter GDP also was revised to 0.4 percent from earlier estimates of 1.9 percent. The revised figure indicates the economy isn’t recovering as much as previously thought.

U.S. Commerce Secretary Gary Locke said in a statement:

Today’s first look at GDP in the second quarter confirms what we already knew: The economy isn’t growing as fast as it needs to. And every day that we fail to act to lift the debt ceiling and inch closer to default, we threaten our economic progress and job creation. Experts have repeatedly warned that if this uncertainty continues, our economy will pay the price. We can’t afford to return to the same failed policies that brought us here. We must build on the progress we’ve made over the last two years and reach a balanced compromise that will reduce our debt and at the same time strengthen our job-creating ability and global competitiveness for the future.

Also, as consumers remain cautious about spending in this economy, the personal savings rate has risen. The personal savings rate was 5.1 percent in the second quarter, up from 4.9 percent in the first period.

If you live in Oklahoma, the First National Bank of Pawnee has competitive CD rates. The bank does not accept out of state deposits to open a certificate of deposit. CD rates available as of July 27, include:

• 0.5 percent annual percentage yield (APY) for 91-day single maturity
• 1 percent APY for 182-day
• 1.21 percent APY for 1 year
• 1.31 percent APY for 18 months
• 1.51 percent APY for 2 years
• 2.02 percent APY for 3 years
• 2.17 percent APY for 4 years

All of the CD rates are for single maturity and auto-renewable CDs, except for the 91 day CD. The 91- and 182-day CDs require a minimum opening deposit of $2,500.

For other certificates of deposit, the minimum opening deposit is $1,000. You can elect to have interest paid by check, checking deposit, savings deposit or added onto the CD. Early withdrawal penalties include 3 months’ interest for 1-year CDs and 6 months’ interest fo 2, 3, and 4-year CDs. The penalty for early withdrawal of a 91-day certificate of deposit is 91 days interest and 3 months’ interest for a 182-day CD. Deposits at First National Bank of Pawnee are insured by the Federal Deposit Insurance Corp.

Urban Partnership Bank has a savings rate of 1.05 percent annual percentage yield (APY) for balances of $100,000 and up. Balances below $100,000 earn a savings rate of 1 percent APY for the online savings account. Details of the bank deal include:

• $1 minimum monthly deposit
• No monthly fees
• No fees for transfers to and from other banks
• 24-hour online banking
• Limit of six bank-to-bank funds transfers each month
• Direct deposit is available
• Electronic statements
• Insured by the Federal Deposit Insurance Corp. (FDIC)

The bank also has competitive CD rates for various terms. Currently, the bank has CD rates for deposits under $100,000 of 1.16 percent APY for 18 months, 1.46 percent APY for 30 months and 2.42 percent APY for 60 months. Deposits over $100,000 can earn CD rates of 1.31 percent APY for 2 years, 1.71 percent APY for 3 years and 2.52 percent APY for 5 years. Other rates and terms are available, including jumbo CD rates. To open a certificate of deposit you need a minimum of $1,000.

Urban Partnership Bank is a full-service, certified community development financial institution that was established in August 2010. It serves individuals and organizations in distressed communities in Chicago, Cleveland and Detroit.