High Yield CDs (FDIC Insured) For March, 2010.
Posted: March 22nd, 2010 | Author: Joe | Filed under: Saving | Tags: CDs, high Yield Savings, Saving, Savings | No Comments »All the banks or credit unions offering these CDs have at least a 3 star rating from BankRate.com, which means it is at least average in it’s “safe and Sound”® rating. Here’s the full rating system:
Safe & Sound® rating system
| Star rating | Definition |
| ***** | Superior |
| **** | Sound |
| *** | Performing |
| ** | Below peer group |
| * | Lowest rated |
1 Month CDs
| Bank or Credit Union | APY | Minimum deposit |
| NBC Bank Tulsa, OK *** | 0.75% | $1,000 |
| Allstate Bank Northbrook, IL **** | 0.30% | $1,000 |
| Citizens Trust Bank Atlanta, GA *** | 0.20% | $1,000 |
3 Month CDs
| Bank or Credit Union | APY | Minimum deposit |
| American Bank Allentown, PA **** | 0.90% | $500 |
| Transportation Alliance Bank Ogden, UT ***** | 0.75% | $1,000 |
| Allstate Bank Northbrook, IL **** | 0.50% | $1,000 |
| Salem Five Salem, MA **** | 0.35% | $2,500 |
| Bank of Internet USA San Diego, CA **** | 0.35% | $1,000 |
6 Month CDs
| Bank or Credit Union | APY | Minimum deposit |
| Ally Bank Midvale, UT *** | 1.25% | $0 |
| Ascencia, a div. of PBI Bank Louisville, KY *** | 1.11% | $500 |
| Transportation Alliance Bank Ogden, UT ***** | 1.04% | $1,000 |
| American Bank Allentown, PA **** | 1.00% | $500 |
| Colorado Federal Savings Bank Greenwood Village *** | 1.15% | $5,000 |
9 Month CDs
| Bank or Credit Union | APY | Minimum deposit |
| giantbank.com Ft. Lauderdale, FL *** | 1.16% | $2,500 |
| Ally Bank Midvale, UT *** | 0.99% | $0 |
| Bank of Internet USA San Diego, CA **** | 0.99% | $1,000 |
| Intervest National Bank New York, NY *** | 0.85% | $2,500 |
| MetLife Bank Bridgewater, NJ **** | 0.65% | $25,000 |
12 Month CDs
| Bank or Credit Union |
APY | Minimum deposit |
| AIG Bank Wilmington, DE *** | 1.56% | $2,500 |
| Ally Bank Midvale, UT *** | 1.55% | $0 |
| OneUnited Bank Los Angeles, CA *** | 1.55% | $1,000 |
| Colorado Federal Savings Bank Greenwood Village *** | 1.55% | $5,000 |
| Bank of Internet USA San Diego, CA **** | 1.40% | $1,000 |
5-Year CDs
| Bank or Credit Union | APY | Minimum deposit |
| EverBank Jacksonville, FL *** | 3.35% | $1,500 |
| USAA San Antonio, TX **** | 3.10% | $1,000 |
| Discover Bank New Castle, DE ***** | 3.10% | $2,500 |
| Ally Bank Midvale, UT *** | 3.09% | $0 |
| Nationwide Bank Columbus, OH **** | 3.05% | $500 |
Some observations…
Obviously, you’re going to earn more interest the longer you lock your money up but It’s interesting to see that the difference between 6 and 9 month CDs is negligible – and in the case of Ally Bank’s 6 month CD, you actually earn more than other 9 month CDs!
Also, some names appear multiple times. Ally Bank, for instance, is consistently on the high yield list, while other banks appear at different ends of the maturation spectrum. It makes me wonder how they can afford to offer high yielding CDs in all these maturity levels. I could see where Allstate Bank for example can offer high yields on short maturities, and either make the money up on their longer maturity offerings, or just by other long term investments they hold.
And lastly, it’s obviously not a savers market out there. This should come as no surprise, since the federal funds rate (the rate that banks are charged for the money) is virtually nil. The incentive is to borrow and spend, not save. This will turn around some day, which is the major reason not to tie your money up in long term CDs.
Source: Bankrate.com
Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration. Bankrate.com rates banks, thrifts and credit unions through proprietary Safe & Sound star rating system. Rates are subject to change without notice and may vary from branch to branch.
