Best CD Rates

Savings grows despite falling CD rates (Jul 2, 2009 13:00)
Our astounding turn toward frugality is not being rewarded by the continuing swoon in CD rates. The ..

Get Laid Off, Get Your Savings Back (Jul 1, 2009 17:36)
If you’re hesitant to tie your savings up in a certificate of deposit because you might lose your jo..

Earn 2.65% With The Best 2-Year CD Rates (Jun 29, 2009 13:23)
This summer’s highest yields on 24-month certificates of deposit wouldn’t have made it into our top ..

Colonial Bank Offers 2.50% On 1-Year CDs (Jun 27, 2009 13:45)
This southern bank has come up with one of the best CD rates around for short-term deposits. Colonia..

Top CD Rates From Four Small Banks (Jun 26, 2009 14:19)
All of the best CD rates are being paid by community banks and thrifts these days. Unlike the big ba..

CD rates resume their slide this week (Jun 25, 2009 15:02)
CD rates resumed their slide this week, indicating that they still haven’t bottomed out. Bankrate’s ..

Earn 2.76% APY With A “Rising Rate” CD (Jun 24, 2009 13:02)
First Midwest Bank caught our eye with a novel 32-month certificate of deposit whose rate increases ..

TotalBank Leaps To Top Of CD Rates (Jun 23, 2009 19:03)
This South Florida bank is making a big splash with the best CD rates available on four different ty..

Small Banks Lower Top CD Rates (Jun 22, 2009 17:05)
We’ve seen it happen time and time again. A successful small bank offers a couple of great CD rates ..

Earn 2.50% With The Top 6-Month CD Rates (Jun 22, 2009 13:00)
Six-month CD rates have slumped to record lows the summer. The average return is a depressing 0.89% ..

CD Rates Hold Their Own This Week (Jun 18, 2009 13:00)
The precipitous decline in CD rates slowed over the past week, raising hopes that maybe, just maybe,..

New Banks Offer Best 12-Month CD Rates (Jun 17, 2009 19:45)
Since last month a little bank outside Atlanta has been offering the best rate on 24-month CDs ̵..

Top 36-Month CD Rates Remain Above 3% (Jun 15, 2009 13:00)
You can still earn more than 3% on your savings if you take advantage of the best 36-month CD rates…

CD rates too good to be true (Jun 12, 2009 17:10)
The incredible CD rates in a spate of recent newspaper ads practically jump off the page. An “..

CD Rates Fall Again This Week (Jun 11, 2009 20:42)
How low can CD rates go? The latest look at where rates are headed indicates we probably haven’t see..

Two Banks Offer Top 30-Month CD Rates (Jun 10, 2009 17:56)
Discover Bank and Intervest Bank have moved to the top of our rankings of the best, nationally-avail..

Earn 1.75% With Top 3-Month CD Rates (Jun 9, 2009 22:00)
You can’t make any money on short-term certificates of deposit if you don’t take advantage of the hi..

Shop and compare the best local and national CD rates (Jun 8, 2009 13:50)
We don’t have to tell you that the big banks are paying next to nothing for deposits. They’re gettin..

Ally Bank lowers rates after ABA objects (Jun 5, 2009 19:23)
Ally Bank reduced many of its deposit rates today, about a week after it was attacked for offering b..

Ally Bank 2.80% APY 12-Month CD (Jun 4, 2009 12:02)
Yields on 12-month certificates of deposits are still going down, but not as quickly as they were la..

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.