bank rates

Where to find the best 12-month CDs

Two-year graph of interest rates

A 12-month CD is perfect for anyone who wants to make a few bucks on their investment but doesn’t want to tie up their money for too long.

But you’ve got to find a deal that’s paying more than the national average of 1.29% for these certificates of deposit.

Here are the best 12-month CDs available nationwide:

2.80% APY with a $500 minimum deposit from GMAC Bank, an online bank run by the auto financing company.

2.76% APY with a $10,000 minimum deposit from Corus Bank in Chicago.

2.65% APY with an $8,0000 minimum deposit from UBF Direct Banking Center, based in LaJolla, Calif., which provides CDs through Waterfield Bank.

You can also find good deals at community banks that only accept deposits from local customers. Credit unions often offer their members top interest rates, as well.

Here are some examples:

Melrose Credit Union,
in Briarwood, N.Y., is paying 3.03% APY with a minimum deposit of $5,000.

City Bank, with eight branches in and around Lynwood, Wash., is paying a 2.53% APY with a $500 minimum. The best feature of this certificate is that it has add-on and step-up provisions.

Tennessee Commerce Bank in Franklin is offering 2.55% on a 12-month CD. If you go for an extra six months, you’ll earn 2.75% on its 18-month CD — the best rate we’ve seen for that term.

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Comments (3)
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3 Existing Comments
  1. BB said:
    on May 5th at 07:52 am

    Can someone post recent experience with GMAC Bank? Would you think they are safe? Because of the present situation with GM, I’m nervous about opening a CD with them, but I need to find some bank with relatively decent rates. Thanks.

  2. DealMaven said:
    on May 6th at 09:27 am

    Deposits made with GMAC Bank are covered by the FDIC, so your money is insured up to $250,000 per account, per bank. In addition, GMAC received three of five stars in Bankrate’s Safe & Sound rating system. No need to be nervous about opening a CD.

  3. jack said:
    on May 7th at 10:10 am

    any info on melrose credit union