Best CD Rates Blog

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.

MidAmerica Bank is offering a 5.25% APY 48-month certificate of deposit. The minimum deposit is $10,000. The CD is available for regular and IRA funds. This rate may vary by state. At the top of the rate table, you can select your state. I’ve checked a few states and all show 5.25% APY for the 4-year CD.

The bank is also offering a pretty competitive money market account with a yield of 4.75% APY on balances over $10K.

The “apply” link in the rate table opens up a PDF application that must be printed and mailed. However, if you go to the bank’s home page, there’s an “open a new account online” link on the left hand side. The online application allows you to select the 5.25% 4-year CD. According to the application instructions, the account can be funded with a credit or debit card or U.S. checking or savings account. The only requirement is that you are a US citizen or a US resident alien.

Branches are located in Wisconsin and Illinois. Bankrate.com’s review gives MidAmerica a 3/5 star rating.

IndyMac Bank is currently offering some very competitive short term rates, with 5.00% APY for their 3 month CD and 5.05% APY for their 6 month CD. IndyMac has always had some of the highest CD rates available online, but recently after the fed rate cuts they have dropped their rates significantly.

Minimum balance on internet certificates is $5,000. Terms range from 90 days to 5 years. A penalty with be incurred for early withdrawal. Indy Mac Bank is FDIC insured.

Washington Mutual currently has a 5.00% APY rate on their 6 month online CDs, and a 4.50% APY rate on 5 year CDs. While this is a somewhat competitive rate, WaMu also has a great deal on their 5.00% APY savings account that would allow you to get a high return on your CD while maintaining a degree of liquidity.

Minimum balance on all CDs is $1,000, and are only available online. Opening in person will yield lower rates.

Countrywide Bank now has a CD rate with a 5.65% APY on their 6 month CDs and 12 month CDs. Countrywide was hit the hardest by the subprime lending crisis, and they have some of the highest CD rates in the industry, presumably to maintain an acceptable level of deposits.

The rates on 3 and 9 month CDs remain at 5.35 and 5.45%. Long term rates went down by .025%.

Although Countrywide has been having problems, you should be fine as long as you stay under the $100,000 FDIC insured limit.

Advanta Bank has some fairly high certificate of deposit rates currently available. Taking a look at their rate table, they are offering 5.40% APY rates on their 1 year, 18 month, and 5 year certificates.

Interest is compounded daily. If you have no other ABC accounts, a minimum of $10,000 is required to open a Certificate of Deposit. Persons who have ABC accounts may open a Certificate of Deposit with a minimum of $2,500. Annual Percentage Yields (APYs) assume interest and principal remain on deposit until maturity. There is a substantial penalty for early withdrawal.

Advanta Bank also offers pretty high rates on their jumbo CD rates as well, with 5.40% APY rate on their 1 year and 18 month Jumbo CDs. Minimum deposit on these CDs is $99,000. Advanta Bank is FDIC insured.

Wachovia Bank is a solid brick and mortar bank, but their rates are a bit lower than some of the higher certificate of deposit rates currently available on the market. If you take a look at their rate table, it looks like the highest rate being offered is 4.74% APY on the 12-17 month term to maturities on balances above $10,000. Although Wachovia is a very secure and well known bank, it may be prudent to choose a different bank or even put your money in a high yield savings account for the time being.

Wachovia Bank is FDIC insured.

Bank of America’s CD Rates aren’t necessarily the best rates available, but in light of the recent credit worries, you might feel safer putting your money in a large and reputable bank such as Bank of America or Wells Fargo.

Bank of America is currently offering a 4 month high yield CD with a 5.1% APY. They also have a risk free CD with a 4.85% APY return and a 11 month term. Both certificate of deposits require a $5,000 minimum balance.

It has taken some time, but Bank of America and other brick and mortar banks such as Wells Fargo and Washington Mutual are finally starting to raise their rates to levels that are competitive with other online banks.

Tech Credit Union of California (CA) is offering a new 6.00% APY certificate with a 6 month maturity. Minimum deposit for this CD rate is $10,000.

To open a CD, visit your local branch in Cupertino, Dublin, Fremont, Milpitas, Mountain View, San Jose, Santa Clara, Santa Teresa, or Sunnyvale. You can also call (408) 451-9111 or (800) 553-0880.

Field of Membership requirements:

• Live, work, worship, or attend school in Santa Clara County, San Mateo County, Alameda County, Contra Costa County, Santa Cruz County, or San Francisco County.
• Be an employee of a Tech CU Member Company.
• Be a relative of or reside with a current Tech CU member.

You must open a savings account and deposit $25 to become a member. Tech CU is insured by the NCUA.

Fidelity & Trust of Washington DC is offering a high promotional 5.75% APY 9-month certificate of deposit. Minimum deposit on this CD is $1,000.

It appears to be a local deal for the DC Metro area. Branches are located in Bethesda, Rockville and Silver Spring, Maryland; Vienna Virginia and in Washington DC. The bank is FDIC insured.