Best CD Rates Blog

National City Bank is advertising a new CD special today: 5.00% APY for terms of 19 to 35 months. The minimum deposit is $10,000. The 4.00% money market account special is also being advertised. The 4% APY is guaranteed for 180 days. In Florida, the money market requires a minimum balance of $25,000 to earn the 4%.

In Indiana, the minimum balance is advertised as only $5,000. Here’s the Florida National City ad and here’s the Indiana ad. Note, the Indiana ad states that this is available at National City locations in IN, IL, KY, MI, MO, OH, PA and WI. Both ads list the end date of 9/13/08.

Telesis Community Credit Union is offering a special certificate with a yield of 10% APY and a term of 5 months. The minimum deposit is $500, and the maximum is $2,000. It requires opening a new checking account with direct deposit of payroll or social security of at least $500. The minimum initial deposit for the checking account is $100. The offer ends 8/31/08.

Membership is open to those who live, work or worship in the San Fernando Valley, Santa Clarita Valley, or Ventura County in Southern California. You can also be eligible if you live, work or worship in Lafayette, Moraga, Orinda, Walnut Creek or Pleasant Hill in Northern California’s Contra Costa County. There is no initial balance requirement for the share savings account.

Branches are located in the California cities of Northridge, Camarillo, Canyon Country, Simi Valley, Valencia, Van Nuys, Westlake Village and Woodland Hills.

AmTrustDirect just increased the rates on many of its online CDs. A yield of 4.00% APY is now available on all terms from 12 months to 60 months. The yields for the shorter terms are 3.51% APY for a 6-month CD and 3.76% APY for a 9-month CD. Minimum on all accounts is $1,000.

Here’s some of the details:

• Online application allows for funding by ACH transfer or check
• IRA CDs are not available online
• The early withdrawal penalty is 3 months of interest for terms 11 months or less, 6 months for terms of 12 to 23 months, 9 months for terms 24 to 47 months and 12 months for terms of 48 months or more
• Accounts can be opened with up to two beneficiaries
• When CD matures, you can request closure of the CD by either mail or online by a secure message

Ascencia Bank has recently increased the yields on the 6 and 12-month CDs. The 12-month CD now has a competitive yield of 3.95% APY. The 6-month CD has a yield of 3.66% APY. The minimum deposit is $500, and the maximum deposit is $100,000. Ascencia is an internet bank that’s available to anyone in the US.

Ascencia is an internet bank headquartered in Louisville, KY. It’s a division of PBI Bank which is FDIC insured. It has a 4 out of 5 star rating (excellent) at BauerFinancial based on 12/31/07 data.

Nexity Bank is currently offering a 3.55% APY 3 month CD that tops the charts for our short term certificate of deposits. The minimum balance for this CD is $1,000.

On top of this CD, Nexity also offers competitive short term Business CDs and IRA CDs. 3 month CD rates for their Business CDs yield 3.30% APY. A 12 month Nexity C.D. yields 2.80% APY.

Visit their rates table for more information.

Indymac Bank made some big changes on its Internet CD rates. The yields on all of the terms under one year (even the 4-month Internet Special) are now under 3%. However, they did raise the yield on the 12 and 18 month CDs. Both now have a competitive yield of 4.05% APY.

For those who have CDs maturing at Indymac, be sure you don’t let the CDs automatically renew. About 6 months ago, Indymac was offering 6-month CD yields of 5.70%. If you opened one of these last year and now let it automatically renew, you’ll be stuck with their new low rate of only 2.75% APY.

With rates dropping all over the board, it has become harder and harder to find good rates on certificate of deposits. Here’s a current listing of the best short term CD rates available today:

IndyMac Bank holds the top rate for 3 month CDs , with 4.25% APY on their 3 month CD. Minimum deposit is $5,000.

Countrywide Bank has the best rate for the 6 month CDs, with 4.30% APY on their 6 month CD. Minimum deposit is $10,000.

With rates dropping so quickly, it might be a better idea to maintain liquidity by investing in short term CDs or even high yield savings accounts such as Washington Mutual’s Free Checking/Savings Account, or E*Trade Financials Complete Savings.

Northrop Grumman Federal Credit Union still has some very competitive certificate rates. Some of the top yields include 4.49% APY for a 6-month term, 4.57% APY for a 12-month term and 4.84% APY for a 60-month term. These require a minimum deposit of $40,000. The yields for certificates with a $2,500 minimum are 25 basis points lower except for the 60-month term which is only 20 basis points lower. Similar rates are also available for IRAs.

These rates aren’t 5%, but they’re high compared to what’s now available. After the recent massive Fed rate cuts, bank rates are declining fast. The best yield on a one year term listed at Bankrate is just 4.02% APY at Intervest National Bank. The best yield for a 5 year term listed at Bankrate is 4.25% APY at Eastern Savings Bank.

With the recent Fed rate cuts, Wells Fargo has lowered their rates on their online CD special to 3.50% APY. Minimum balance on this certificate is $5,000, and the term to maturity is 5 months.

At maturity, CD will automatically renew for the Renewal Term stated above, at the interest rate and APY in effect for CDs not subject to a Special Rate, unless the Bank has notified you otherwise.

This CD is only available online and not through brick and mortar Wells Fargo Banks.

Pentagon Federal Credit Union continued its practice of raising certificate rates before the start of the new year. Unfortunately, the new higher rates aren’t as good as previous years even when factoring in the new rate environment. The highest yield currently available is 5.25% APY, but this requires a 7-year term. The 5-year term has a yield of 5.00% APY which is just 5 basis points higher than the previous 4.95% APY. The rates for the shorter terms didn’t change.