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Best CD (Certificate of Deposit) Rates

Posted By Jim On 01/26/2009 @ 12:15 pm In Banking | 10 Comments

If you’re looking for the best CD rates, you’ve come to the right place. Below is a list of the nationally available best CD rates, updated every single day. I looked at the best rates available for CDs of less than 18 months and listed the ones with the highest rate. Typically the longer the term, the higher the rate, but for many online banks the best rates were for periods of shorter than 18 months. For simplicity’s sake, I put the cutoff at 18 months (some banks offer higher rates for longer terms). If you want shorter term CD rates, I have also compiled a list of highest short-term CD rates [3] (less than 12 month maturities).

Certificates of deposit are great safe investments right now because your principal is protected by FDIC insurance and you are guaranteed a positive rate of return for the term of the CD. Certificates of deposit can be opened at your local bank but the best rates are found at online banks because they have so much lower overhead costs. If you don’t have to pay rent for a branch (or pay employees to staff it, power bills to keep it lit, and everything else), you have more to pass on to customers as interest.

FDIC Insurance: Each bank is FDIC insured up to $250,000. You can confirm this by checking the FDIC’s Bank Find tool [4].

Finally, as a reference, the current Federal Funds target rate range [5] is 0.25% (New York Fed [6]).

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[3] highest short-term CD rates: http://www.bargaineering.com/articles/highest-short-term-cd-certificate-of-deposit-rates.html

[4] FDIC’s Bank Find tool: http://www2.fdic.gov/idasp/main_bankfind.asp

[5] Federal Funds target rate range: http://www.bargaineering.com/articles/federal-funds-rate-vs-federal-discount-rate.html

[6] New York Fed: http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm

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