AIG Bank is currently offering some pretty high rates on its money market accounts and CDs. AIG bank is part of the same insurance company that helped bring about the economic meltdown, but for now they are still in business, which means as long as you stay under FDIC insured limits and our monetary system doesn’t collapse you should be safe.

AIG’s Money Market Account

AIG has a tiered money market account with a minimum balance of $2500. The money  market rates are as follows:

• $2.5K-$10K – 1.76% APY
• $10K-$50K – 1.96% APY
• $50K-$100K – 2.01% APY
• $100K-$250K – 2.06% APY
• $250K or more – 2.11% APY

Here are some of the AIG money market account features:

• $10/month fee for balances under 2500
• 3 check per month limit
• 40 checks free
• ATM card, no reimbursement of fees

AIG Certificate of Deposits

AIG CD rates aren’t the best, but they are still respectable. Rates lock at the time of the application, and rates generally change on Mondays. Here’s the current AIG rates as of 6/18/2009:

• 6 month CD – 1.86% APY
• 12 month CD – 2.31% APY
• 18 month CD – 2.36% APY
• 24 months -2.51% APY
• 36 months – 2.96% APY
• 60 months – 3.46% APY

CDs have a $2,500 minimum deposit. Here are some of the details on AIG CDs:

• Interest can compound or be withdrawn each month
• IRA CDs are available
• Penalty of 90 days of interest for terms less than 12 months
• Penalty of 180 days of interest for terms over 12 months

Bauer Financial gives AIG bank a 3 star rating, and BankRate review gives it a 3 star rating as well. AIG Bank is FDIC insured.

Bottom line: while the company this bank is associated with may have made some financially questionable decisions, as long as you stay under FDIC limits you will be fully protected.