bank rates

Best 6-Month CD Rates Settle Around 1.2%

The best 6-month CD rates have settled between 1.20% and 1.25% this month.

 While that is three times the average return of just 0.40% APY on these certificates of deposit, it is half of what you could have earned with the leading 6-month CDs in June 2009.While that’s three times the average return of just 0.40% APY on these certificates of deposit, it’s half of what you could have earned with the leading 6-month CDs in June 2009.

Unfortunately, the Federal Reserve reiterated its intention to keep interest rates “exceptionally low” for an “extended period” last week.

Until than changes, we’ll have to put up with top rates like these on 6-month CDs:

1.25% APY with a $1,000 minimum deposit from First City Bank, which has five branches in Fort Walton Beach, Fla.

1.24% APY with a $1,000 minimum deposit from Aurora Bank, which is headquartered in Wilmington, Del. with a branch in Jersey City, N.J.

1.23% APY with a $1,000 minimum deposit from ShoreBank, which has seven banking centers in the Chicago area, as well as one in Detroit and one in Cleveland.

(Warning: ShoreBank is enmeshed in political controversy and its survival is very much in doubt. You shouldn’t buy a CD there without being aware of its problems.)

1.20% APY with a $500 minimum deposit from Earthstar Bank, which has four branches in the Philadelphia area.

Compare these returns with the best CD rates from scores of other banks in our extensive database.

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Comments (5)
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5 Existing Comments
  1. Stephen J said:
    on June 28th at 09:39 am

    Aren’t CDs insured by the FDIC up to $250,000? What difference does it make if a bank is “enmeshed in political controversy”. For a better article on the bank, read NY Times coverage
    http://www.nytimes.com/2010/05/23/business/23cncshorebank.html

  2. CrankySaver said:
    on June 28th at 10:02 am

    It’s not just an issue of whether ShoreBank is insured by the FDIC. Which it is. Some savers don’t want to go through the hassle of having a bank seized and sold. It used to be that banks who bought failed institutions always honored the CDs they inherited. No more. Buying banks often cut the rates on existing CDs. Also, a lot has happened with ShoreBank since that NYT story was written. More recent reports indicate that the $140 million investment by the big Wall Street banks won’t be enough to save it.

  3. RateRunner said:
    on June 28th at 10:04 am

    The CD Rate Leaderboard For June 28 has been updated and posted on our Personal Finance blog. It lists all of the banks offering the best deals for 3-month to 60-month CDs.

  4. RateRunner said:
    on June 29th at 11:19 am

    You may have heard that the $100 bill is headed for a high-tech makeover New $100 billthis winter in an effort to stay ahead of high-tech counterfeiters. Our beloved Benjamins will never be the same and those clever folks at the Treasury Department have created a nifty interactive demonstration to show off all of the new bill’s features.

  5. Stephen J said:
    on June 29th at 12:22 pm

    Thanks CrankySaver! I didn’t realize that banks sometimes don’t honor the CD terms.