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Highest Short-Term CD (Certificate of Deposit) Rates
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(Updated 11/6) I’ve been keeping a list of the best CD rates for certificates of deposit in the 12-month to 18-month maturity range, figuring that’s typically the sweet spot for rates. If the CD maturity is too short, banks won’t give you a good rate because it’s such a short period of time. If the CD maturity is too long, the customer is taking on a lot more inflation risk than the bank is probably paying out for. However, short term certificates of deposit still have their place:
- You’re setting up a CD ladder and you need CDs to fill up those short period slots.
- You have funds in an account that currently isn’t earning the highest yield for savings, transferring the funds will take time and cut down on your interest earned… so you might as well throw it into a short term CD to get a better rate.
- You simply don’t want to rate chase and open up a new account with each new online bank that offers a high rate, so you might as well hit up a short term rate with the bank you’re worth just to get a little extra.
Regardless of what you’re trying to do, what plans you have for your funds, short term CDs have their place and I’ve researched the banks to see which ones have the top rates for CDs with maturities under 12 months.
This list will be updated as rates change, I will try to keep it as up to date as possible.
Highest Short-Term CD Rates
| Bank | Effective Date |
CD Rate (APY) |
CD Term (Months) |
Minimum Deposit |
| Ally Bank | ||||
| Bankrate National Avg | ||||
| ING Direct | ||||
| Everbank | ||||
| FNBO Direct | ||||
| HSBC Direct | ||||
| Imperial Capital Bank | ||||
| E-LOAN | ||||
| Virtual Bank | ||||
| Discover Bank | ||||
| Penfed Credit Union | ||||
| Citibank | ||||
| Wachovia Bank | ||||
| Capital One Direct Banking |
As with every bank I write about, each one is covered by FDIC insurance up to $250,000, a fact you can confirm by using the FDIC’s Bank Find tool. There’s no reason anyone should deposit funds with a bank that is not FDIC insured.
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 Stumble It! Bookmark reddit.comTags: Ally Bank, Capital One, CD, Citibank, E-LOAN, ETrade, FNBO Direct, GMAC Bank, HSBC Direct, ING Direct, Rates Table Feb 13, 2009 | Read more in Banking |
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E*Trade Bank Is offering online savings account with interest rate 2.50 % APY. But it has been mentioned in your table (in brackets) as 2.15% APY.
They sent out an email stating the rate would be going down to 2.15% within a day, I figured readers deserve to know that it’s going to be 2.15% in 24 hours.
I never understood why companies would offer lower rates on a CD than they would offer on their savings account – other than hedging against drastic rate drops (which aren’t all that likely to happen), why would anywone tie up money in a CD at ING for 1.5%, when the completely liquid savings account is at 2.2%. Obviously if there is a greater rate on the CD, the lack of liquidity justifies the higher rate.
I think they do it because they anticipate rates to continue falling, they can freely adjust savings account rates as they please but people can lock in rates with they go with a CD. About a month or two ago I locked in a 16-month CD at Dollar Savings Direct for 4%, the same as their savings account; because I knew the rates were going to fall (they already started falling at other banks). It’s just a matter of time now… with the Fed rate at essentially 0%, interest rates will keep falling.
Also, these are short term (< 12 months) rates, the longer term ones are more competitive.
@Dave
I never understood why companies would offer lower rates on a CD than they would offer on their savings account
I thought the same thing 2 years ago when my E-trade account was paying 5.15 and 18month CD’s where going at 4.7.
I do online bill pay with USAA, but also need to write 3 checks a month. Recently I ordered a box of checks online from USAA – they were free and arrived in 3 days!
lower rates are anticipatory.
Looks like that GMAC is a good one if you are looking for s nice short term boost.
I current receive 6.01% on my checking account…yes my CHECKING ACCOUNT from Kansas State Bank up to $25,000. There are a few things you have to do to satisfy the requirement but for 6.01% I gladly do it.
Check it out. I do not work for KSU or get any kind of credit for this. I just believe that there are local small town banks that can really provide a good product and not worry about the next payment on their corperate jet.
Good to know the cds I was about to get at my local credit union are fairly comparable.
What’s the best way to invest money that will generate income every month? I want my money to make money and would like to know what you’re ideas are. Thanks.