Best CD Rates

CD Rates Leaderboard For September 8 (Sep 8, 2010 21:28)
Only a couple of hours after we posted yesterday’s rundown of the best nationally available CD rates..

Holding The Line On Top 3-Year CD Rates (Sep 8, 2010 16:42)
August was a brutal month for CD rates. When the month began all of the top five returns on 36-month..

CD Rates Leaderboard For September 7 (Sep 7, 2010 14:22)
No changes to the best nationally available CD rates coming off of Labor Day. That’s good news, of c..

Go Long For Wells Fargo’s Best CD Rates (Sep 6, 2010 15:10)
The trick to finding decent CD rates at Wells Fargo is to go long. It’s impossible to find a big ban..

Great Plains Deal On 2-Year CD Rates (Sep 5, 2010 14:22)
Colorado East Bank and Trust has one of the best 24-month CD rates in the country for savers in sout..

Stand Out Deal Still Tops 3-Month CD Rates (Sep 4, 2010 14:47)
We look at hundreds and hundreds of CD rates every day, and this deal from iGObanking continues to s..

CD Rates Leaderboard For September 3 (Sep 3, 2010 18:05)
So far, so good this month. Heading into the Labor Day weekend none of the top nationally available ..

USAA Joins Leaders In 5-Year CD Rates (Sep 2, 2010 16:33)
After watching the same banks offer the best 5-year CD rates all summer, it’s good to report that we..

Top 24-Month CD Rates Fall Below 2.00% (Sep 1, 2010 14:35)
What’s going on with 24-month CD rates? This is the third time in the past six days that we’ve had t..

The CD Rates Leaderboard For August 31 (Aug 31, 2010 18:44)
All of the banks are back from our last Leaderboard, but NewDominion Bank lowered its return on 24-m..

Same Banks, Lower Rates On 5-Year CDs (Aug 31, 2010 14:15)
The same banks have led our rankings of the best 5-year CD rates all summer. Unfortunately, the rate..

Danversbank Leads In 36-Month CD Rates (Aug 30, 2010 15:15)
Danversbank is in sole possession of first place at the top of our rankings of the best 36-month CD ..

Upstate N.Y. Deal: 3.18% On A 3-Year CD (Aug 28, 2010 21:22)
Massena Savings and Loan has a truly special rate on 36-month CDs for savers in upstate New York. I..

One Bank Still Pays 2% On 2-Year CDs (Aug 28, 2010 14:15)
NewDominion Bank is the only one still paying 2.00% APY in our rankings of the best 24-month CD rate..

Desert Deal: 1.87% On A 12-Month CD (Aug 27, 2010 19:23)
1st New Mexico Bank has one of the best 12-month CD rates available anywhere for savers living in th..

Sallie Mae Grabs Lead In 1-Year CD Rates (Aug 27, 2010 14:44)
For the first time ever, Sallie Mae Bank has landed at the top of one of our rankings of the best CD..

This Was Another Bad Month For CD Rates (Aug 26, 2010 20:30)
CD rates fell for the 22nd straight month in August. The average return on all five of the certifica..

The CD Rates Leaderboard For August 26 (Aug 26, 2010 17:09)
There are three new leaders in today’s rankings because Melrose Credit Union cut its rates. Melrose ..

It’s A Cryin’ Shame: Melrose Cuts CD Rates (Aug 26, 2010 15:04)
We knew this day was coming. Melrose Credit Union, which has led our rankings of the best 12-, 24-, ..

S. Carolina Deal: 2.07% On A 12-Month CD (Aug 25, 2010 20:00)
The Bank of Westminster is offering savers in northwest South Carolina one of the best deals in the ..

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.