* * * The CD (Certificate of Deposit) Rates table has moved to cdrates.bankaholic.com * * *
Go Short With Ally Bank’s 5-Year CD (Mar 19, 2010 15:55)
Here’s another long-term CD with such a small early withdrawal penalty that it’s a better bet than t..
Leading CD Rates Top Out At 3.36% APY (Mar 17, 2010 16:51)
The best CD rates on the five terms we’ve regularly tracked held steady over the past week. We can o..
Top 3-Month CD Rates Hold At 1.25% APY (Mar 14, 2010 14:01)
Fortune Bank, with a single branch in suburban St. Louis, held onto the top spot in our 3-month CD ..
You Can Game Some Long-Term CD Rates (Mar 12, 2010 15:40)
A couple of months ago we advised against buying long-term CDs at the bottom of a rate cycle. The co..
Earn Up To 2.75% With The Best CD Rates (Mar 10, 2010 17:24)
The best rates for three of the five CDs we regularly track fell over the past 10 days. Hudson City ..
Best 1-Year CD Rates Now 1.9% to 1.7% (Mar 8, 2010 22:27)
It’s been more than a month since the best 12-month CD rates fell below 2%. Now there’s only one ban..
CD Rates Still Too Good To Be True (Mar 6, 2010 15:47)
We’d have thought this scheme to sell annuities to desperate savers would have run its course by now..
Best 24-Month CD Rates Dip To 2.30% APY (Mar 2, 2010 16:00)
The highest available CD rates on 24-month certificates of deposit have fallen for the fourth straig..
Earn Up To 2.8% With The Best CD Rates (Feb 27, 2010 14:00)
The best CD rates slipped lower this month, with returns on most of the top-paying certificates of d..
CD Rates Continue Long Slide In February (Feb 25, 2010 12:00)
Most CD rates declined for the 16th straight month as the Federal Reserve stood by its policy to hol..
Top 6-Month CD Rates Hold At 1.60% (Feb 23, 2010 15:30)
Country Bank leapt to the top of our rankings of the best 6-month CD rates last month — and it..
Best 18-Month CD Rates Reach 1.95% APY (Feb 20, 2010 14:37)
Not every bank offers 18-month certificates of deposit, and there’s nothing special about the return..
36-Month CD Rates Top Out At 2.80% APY (Feb 15, 2010 14:30)
The best 36-month CD rates plunged back below 3% last month — and stayed there. We don’t expec..
Top 12-Month CD Rates Drop, Others Hold (Feb 10, 2010 17:49)
Most of the top CD rates are unchanged this week, with the exception of 12-month CDs, which dropped ..
Take Full Advantage Of Relationship Rates (Feb 9, 2010 19:06)
With interest rates this low, you need to make the most of every opportunity to boost the return on ..
3-Month CD Rates Top Out At 1.25% (Feb 8, 2010 15:29)
A small bank in suburban St. Louis now has the best 3-month CD rates. Fortune Bank, which has a sing..
2% Returns Are History For 12-Month CDs (Feb 3, 2010 20:07)
The last bank offering 2.00% APY on a 12-month CD, Franklin Synergy Bank, dropped its yield to 1.90%..
The Week’s Best CD Rates Top Out At 2.8% (Feb 2, 2010 20:42)
Here’s our mid-week rundown of the best, nationally available CD rates based on our current rankings..
One Bank Still Pays 2% On 12-Month CDs (Feb 1, 2010 16:00)
At the end of last year, six banks were paying 2.00% APY on 12-month CDs. Now there’s one. (And it i..
E*Trade CD Rates Dive To Appalling Lows (Jan 31, 2010 14:30)
Hey, E*Trade baby, here’s something worthy of your best “shocked face.” Last April we ca..
Best 6-Month CD Rates
| CD Bank | Interest Rate (APY) | Notes |
| First Fed Direct | 5.46% | $10,000 minimum deposit |
| Net Bank | 5.40% | $1,000 minimum deposit |
| Merrill Lynch Bank | 5.50% | $25,000 minimum deposit |
Best 12-Month CD Rates
| CD Bank | Interest Rate (APY) | Notes |
| E-Trade Bank | 5.40% | $1,000 minimum deposit |
| Net Bank | 5.40% | $1,000 minimum deposit |
| AmTrust Direct | 5.41% | $1,000 minimum deposit |
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.
