Best CD Rates

CD Interest Rates Contiue to Soar (Aug 1, 2008 12:00)
Although the Federal Discount Rate has remained unchanged at 2.00% for the last 3 months, banks hav..

5.00%+ APY CD Rates Are Back! (Jul 8, 2008 08:03)
While doing my daily routine of checking the stock market (bloody!) & interest rate news, I no..

Interest Rates Poised to Move Higher (Jun 16, 2008 10:44)
Good news for savers! The Federal Reserve has made it clear that they are actively going to try to ..

Have CD (Certificate of Deposit) Rates Bottomed? (Apr 29, 2008 12:34)
Bernanke and the rest of the Federal Reserve are expected to lower interest rates by 25 basis point..

How to Open a CD (Certificate of Deposit) Account (Mar 12, 2008 05:19)
It is quite easy to open a certificate of deposit account and there are ways to benefit from it as w..

Lock in 4.00%+ CD Rates While You Can! (Mar 11, 2008 09:21)
Ben Bernanke and all the other clowns at the Federal Reserve are meeting on March 18, 2008 to cut i..

Zions Direct Certificate of Deposit Auctions (Mar 5, 2008 07:51)
Zions Direct offers customers the opportunity to bid on Certificates of Deposit in online auctions. ..

How I Got a 4.80% 9-Month CD Last Week! (Feb 15, 2008 00:43)
No joke! 9 months ago, when rates were sky high, I locked in a 5.75% APY 9-month CD account at World..

World Savings 5.41% 6-Mo CD Rate (May 7, 2007 12:01)
There’s a 5.41% APY CD Rate over at World Savings Bank. The terms a 6-months certificate of deposit ..

IndyMac Bank 5.50% 6-Month CD Rate (Apr 11, 2007 17:45)
CD Rates have been on a slow decline over the last few months, so it’s nice to see that IndyMac Bank..

WaMu 5.40% APY 6-Month CD Rates (Mar 30, 2007 02:24)
Washington Mutual Bank used to offer a 6.00% WaMu CD Rate, but it looks like that deal is no longer ..

5.56% World Savings 10-Month CD Rate (Mar 14, 2007 09:25)
World Savings Bank frequently runs hot Certificate of Deposit Rate promotions. This time, they are o..

5.50% Rates CD @ Merrill Lynch Bank (Feb 12, 2007 04:53)
CD Rates at Merrill Lynch Bank are a sky high 5.50%. The term is for the 6-month cd account, and the..

Superior Savings 9 Month CD Rates (Dec 17, 2006 20:03)
CD Rates at Superior Savings are one of the highest in the nation, with 5.51% on their 9-Month Certi..

Piedmont Bank 5.75% CD Rates (Dec 13, 2006 09:39)
Piedmont Bank is now offering a 5.75% APY on certificate of deposit terms from 12 to 60 months. This..

Millenium Bank 8.75% 5 Year CD Rate (Nov 21, 2006 23:56)
Best CD Rate at the moment appears to be Millenium Bank, which offers a slew of high cd rate account..

Merrill Lynch 5.65% 6 Month CD Rate (Nov 21, 2006 01:32)
Best rate on 6 Month CD can be found on Merrill Lynch 5.65% 6 Month CD Rate. A high-rate Merrill Lyn..

AmTrust Direct 5.51% Best Rate on 6 Month CD (Nov 19, 2006 22:52)
AmTrust Direct bank has a 5.51% certificate of deposit rate account. This is one of the best rate on..

Sovereign Bank CD Rate (Nov 19, 2006 21:53)
Sovereign Bank CD Rate, according to some rumors from bankers on the east coast, will be amping up i..

Indymac Bank 5.50% APY 3-Month CD (Sep 20, 2006 07:35)
Indymac Bank has competitive interest rate of 5.50% APY on their 3-Month CD (certificate of deposit)..

Best 6-Month CD Rates

Best 12-Month CD Rates

Finding the Best CD Rates
To find the best rates on CDs, you need to do some research, a lot of which can be done online. First, a little on CDs themselves. A certificates of deposit (CD) is a very safe investment vehicle-one of the safest in the market for investors. Up to a certain limit (as regulated by the FDIC), your funds are insured. Although CDs offer low-risk, this low risk also comes with relatively low returns. Therefore, searching for the best CD rates is a worthwhile exercise.

Why Certificate of Deposits Pay Higher Rates
A CD will pay higher rates than a savings account, as the investment you put into a CD cannot be accessed for the duration of the CD. Investing in a CD is not difficult; simply go to your bank or any other financial institution offering CDs and tell them you’re interested in investing in a CD. After filling out a form and receiving instructions on how to transfer funds, you’ll have yourself a CD.

Your CD will pay you interest, which you may either spend or reinvested to earn more interest (this is called compounding and is recommended as it will grow your investment faster). At maturity, you will have a few days to decide on whether to take your funds or roll them over into a new CD.

Looking around for the best CD rates is worthwhile, as a difference of a few tenths of a percentage point in a rate adds up over time. CD rates are quoted in terms of annual percentage yield (APY). Before you invest, compare the APY for different CDs with the same maturity and investment amount.

There are several places to look to find the best CD rates. Check with your banking institution on their current CD rates. Using these rates as a benchmark, do research on the Internet to find even lower rates. Institutions sometimes offer “sales” or “deals” at various times during the year on their rates to attract investors. Many online resources exist, such as bank websites, online-only banking services, personal finance blog sites that track CDs and are knowledgeable about the best rates being offered, and brokerage firms. Brokerage firms have access to large blocks of CDs that they trade and thus may be offer better rates than banks.

When doing your research, be sure that you are comparing apples to apples. CDs with longer maturities typically have higher rates than CDs with shorter maturities, as your money is tied up for a longer period. Compare 10-year CD rates with other 10-year CD rates.

Jumbo CD Bank Accounts
In addition, compare rates for the same investment levels; for example, many institutions offer better rates for larger, or “jumbo”, investments for CDs of the same maturity. Bank A may offer a 5% APY for a three-year CD over $100,000 but a 4.5% APY for a three-year CD of $25,000.

Since exceptions always exist, do your research carefully and thoroughly, and you may find a nice surprise. Keep in mind that banks will often give their most valued customers special rates on CDs. Sometimes, to qualify for a higher rate, you may need to have a certain minimum investment with an institution, and consolidating your holdings with a few financial institutions may be worthwhile.