If you look above you’ll see that I’ve launched a new category – “Bad Rates.” In doing research on CD rates and savings accounts, I’ve found many banks offering mediocre deals. These should be avoided at all costs, and so I’ve created a new category to document these bad rates. For the inaugural post to this category I’ve chosen Webster Bank.

Webster Bank offers CDs with maturity dates of anywhere from 3 months to 5 years, with 4 brackets: $1,000-$2,499, $2,500-$19,999, $20,000-$49,999, and $50,000+. CD rates are pretty crappy across the board, reaching 4% only within the $50,000+ bracket and even then only with the 2 year CD and above. The 9 month CD is the only exception at 5% APY, but in order to get this rate you also need to open a checking account with Webster Bank.

I came across a review on Epinions.com that wholeheartedly slams Webster, saying “Webster bank is neither simpler nor better. They charge you a “fee” or a “service charge” every time you breath or turn around. In my town, First Federal was taken over by the faceless mask of Webster Bank a few years ago. Many people took their money home and hid it under their mattresses as I did for several reasons.”

In short, stay away from Webster Bank; HSBCdirect.com, EmigrantDirect.com, or Eloan.com would probably be much better choices when it comes to the best CD rates.