Best CD Rates

2-Year CD Rates Last To Hit Record Low (Nov 20, 2009 16:54)
The average return on 24-month CDs fell to a record low of 1.34% APY this week. In doing so, it beca..

Best 24-Month CD Rates Jump to 2.60% (Nov 18, 2009 17:02)
The best 24-month CD rates are a little higher this month than they were in October. Last month you ..

The Jacksonville Bank Has 3 Top CD Rates (Nov 14, 2009 16:50)
A small north Florida bank has shot to the top of our rankings of the best, nationally available CD ..

Small Bank, Good Odd-Term CD Rates (Nov 12, 2009 16:00)
A small bank in central Kentucky has two odd-term CD rates that are well worth considering Century B..

CD Rates Take Break From Relentless Fall (Nov 10, 2009 21:23)
Four of the five average CD rates we track remained unchanged this week, giving savers a brief repri..

Top 6-Month CD Rates Turn For The Worse (Nov 9, 2009 17:27)
Finding good deals on any certificate of deposit is a chore, but 6-month CD rates have been particul..

No Help From Fed As CD Rates Slide Again (Nov 5, 2009 16:57)
The Federal Reserve said it will continue to hold interest rates down for an “extended period&..

Frontier Alone At Top Of 2-Year CD Rates (Nov 4, 2009 18:40)
Frontier Bank is now alone at the top of our rankings of the best 24-month CD rates. It did that by ..

Top CD Rates Meet Rewards Checking (Nov 3, 2009 18:18)
First National Community Bank has an intriguing offer that combines a high-yield checking account wi..

Top 36 Month CD Rates Hold At 3% (Nov 2, 2009 15:33)
Hudson City Bank hasn’t cut its chart-topping 36-month CD rates for more than a month now. That’s no..

Long-Term CD Rates Resume Decline (Oct 29, 2009 15:46)
Long-term CD rates fell in October, undercutting hope that the sharp delcine in savings rates that b..

Small Florida Bank Tops 1-Year CD Rates (Oct 28, 2009 14:30)
Southern Commerce Bank has jumped to the top our rankings of the best, nationally available 12-month..

TotalBank Still Atop 3-Month CD Rates (Oct 26, 2009 15:15)
TotalBank has led our rankings of the best 3-month CD rates for four months now, even though its ret..

New Offer Nearly Tops 24-Month CD Rates (Oct 25, 2009 14:00)
Atlantic Coast Bank, which has a dozen branches in Georgia and Florida, has moved into our rankings ..

Amex Offers Two Competitive CD Rates (Oct 23, 2009 15:10)
American Express Bank has popped onto our radar screen with a couple of good CD rates. The credit ca..

CD Rates Settle Lower This Week (Oct 22, 2009 15:22)
As CD rates settled ever lower this week, there’s word that President Obama is preparing to stomp on..

Earn 2.50% With Ridgestone 25-Month CD (Oct 21, 2009 15:00)
If you’ve got big money, Ridgestone Bank has big CD rates. It’s paying 2.50% APY on a 25-month CD, w..

New Leader In 5- And 6-Month CD Rates (Oct 20, 2009 18:19)
Country Bank for Savings has one of the best short-term CD rates around. It’s paying 1.80 APY with a..

Top 12-Month CD Rates Rebound To 2.25% (Oct 19, 2009 15:00)
With most 12-month CD rates dropping like a stone, who’d have thought the best returns would be high..

H&R Block Switches Special CD Rates (Oct 16, 2009 13:00)
H&R Block Bank has replaced its top-paying 6-month CD special with a 90-day promotional rate. T..

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.