Best CD Rates

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If you are unfamiliar with a Certificate of Deposit account, it is similar to a savings account in that it is insured and risk free. I will try and keep up with the best CD rates on this page.They are different than a savings account in that a CD, has a specific, fixed term and usually a fixed interest rate. These terms are usually 3 months or 6 months but can be anywhere from 3 to 5 years or more. You are able to accrue more interest on a CD than you can a savings account at a bank because the rates tend to be higher. I will map out a few general guidelines, the avg. interest rate on a CD, and the best current rates of our bail-out friends –the banks. See my commentary on high yield savings accounts.

CD interest rate guidelines

The first thing you should know is the higher your principal deposit the higher your interest rate should be. You may not, but many banks will reward you for a high amount. Depending on the Yield Curve (the relationship between the interest rate and time of maturity) you may receive a higher interest rate the longer you keep your money in the bank. If you go with a 5 year CD your CD rates may be higher. Side note: smaller institutions tend to have higher interest rates than larger ones.

National Avg. of CD rates

Here is a chart of the national avg. of CD accounts across the nation.

National CD Averages – December 9th, 2008

These averages are dropping weekly due to the economic issues we have faced recently. The time to get a CD account is sooner rather than later as these numbers continue to see a drop. Banks CD rates are updated daily and can change overnight, so the national average may be different, but the percentage points will remain relatively close to these numbers for some time.

The best CD Rates today – 1 year

If you are looking for the best high-yielding CD accounts than you came to the right place. I have listed some smaller institutions as well, as the evolution of banking and financial processes has allowed smaller banks to compete on a global level. Here is a list of the best CD rates in the country. The initial deposit placed in the CD account and the time the money will be there, plays a large role in rates and accrual. For continuity I have listed all rates for a 1 year CD.

Bank                Date               Rate (APY)     Min. Deposit    Rating

These rates are representative of today and could change at any time. What I have listed are also the common Fixed-rate CD accounts. There are other high-yield accounts or other accounts where you can change your interest after a period of time. Banks also offer specials for a high initial deposit, or linking your other banking operations with the CD. This chart just gives you a general idea of the leaders in CD accounts are and where to put your money.

Advantages of CD Accounts

There are many advantages to CD accounts versus a money market savings or high yield interest rates on accounts. Even experienced leaders and investors in the banking industry prefer the security offered by the low-risk of CD’s. Many banks will claim they offer the best CD rates in town. How does one decide which is stating a factual offer and which bank is blowing smoke? Two places you probably haven’t thought to check are government websites and credit unions. Credit Unions offer great interest rates on Cert. of Deposit accounts but may want a higher initial deposit than most mainstream banks.