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Highest Short-Term CD (Certificate of Deposit) Rates

Posted By Jim On 02/13/2009 @ 1:10 pm In Banking | Comments Disabled

(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 [3], figuring that’s typically the sweet spot for CD rates [4]. 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 [5], 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

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 [6]. There’s no reason anyone should deposit funds with a bank that is not FDIC insured.


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[3] best CD rates for certificates of deposit in the 12-month to 18-month maturity range: http://www.bargaineering.com/articles/best-cd-certificate-of-deposit-rates.html

[4] CD rates: http://www.bargaineering.com/articles/cd-rates

[5] highest yield for savings: http://www.bargaineering.com/articles/top-5-online-banks-savings-or-checking-accounts.html

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

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