Best CD Rates Blog

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.

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.