High Yield CDs (FDIC Insured) For March, 2010.

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

1 Month CDs

3 Month CDs

6 Month CDs

9 Month CDs

12 Month CDs

5-Year CDs

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.

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CD Rate Roundup – Best Bank CD Rates in May

Emergency savings accounts are all the rage these days, and while many people keep theirs in a high yield saving account, others use CDs. It all depends on when you might need the cash.

You may want to consider splitting up your savings, depending on your situation. For example, you may only keep a months expenses in a high yield savings account, and put the bulk of the remainder in a CD. This is especially attractive given the low interest rates these days, since CDs usually offer a higher rate of return.

Well, it’s something I’ve been thinking of doing, and I since I’ve been doing the research I thought I’d compile the list and share it with you.

These are the best cd rates for deposits of $10,000 and under, as rated by BankRate.com. I filtered out the worst and here’s the 2 and 3 star (out of 3 stars) ratings that remain.

Term
Institution
Rate
APR
Min
Deposit









1 month














Univest National
Bank & Trust Co.
Souderton, PA
 0.75
0.75
 $2,500











E-LOAN 

Pleasanton, CA
0.55
0.55
 $10,000










Citizens Trust Bank

 Atlanta, GA
0.20
0.20
$500









3 month







Ally Bank 

Midvale, UT
1.73
1.75
$0



Excel National Bank 

Beverly Hills, CA
1.73
1.74
 $10,000



NOVA Bank 

Philadelphia, PA
1.29
1.30
$500



Discover Bank 

New Castle, DE
1.25
1.25
 $2,500









6 month







Ally Bank

 Midvale, UT
2.13
2.15
$0



Excel National Bank 

Beverly Hills, CA
1.98
2.00
 $10,000



giantbank.com

 Ft. Lauderdale, FL
1.89
1.91
$2,500









1 year







Ally Bank 

Midvale, UT
2.76
2.80
 $0



Pacific Mercantile 

Bank Costa Mesa, CA
2.35
2.38
$10,000



Discover Bank 

New Castle, DE
2.33
 2.35
$2,500




Advanta Bank Corp.

 Salt Lake City, UT
2.27
2.30
 $10,000









3 year







Ally Bank

 Midvale, UT
3.15
3.20
 $0



Frontier State Bank 

Oklahoma City, OK
2.73
2.75
$10,000



Discover Bank 

New Castle, DE
3.16
3.20
 $2,500



Intervest National 

Bank New York, NY
3.05
3.10
 $2,500









5 year







Ally Bank

 Midvale, UT
3.44
 3.50
 $0



Frontier State Bank 

Oklahoma City, OK
3.21
3.25
 $10,000



Advanta Bank Corp. 

Salt Lake City, UT
3.25
3.30
$10,000



Nationwide Bank 

Columbus, OH
3.25
3.30
$500

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• Best High Yield Savings Account Rates Of 2011.
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• Where Should You Keep Your Emergency Fund?

What Do the FDIC Insurance Limits Cover?

You’ve probably heard that Congress increased the limit of FDIC insurance from $100,000 to $250,000 back in the second half of 2008, when it seemed the sky would fall any day. But did you know that increased coverage expires on 1/1/2010? I didn’t either.

I saw a sign in my local bank stating the increase in coverage and that it will reset to $100,000 on midnight of 12/31/2009 unless Congress extends it.

So what does the FDIC insurance cover?

• Deposits in checking and savings accounts
• Money market deposit accounts
• Certificates of Deposit (CDs).

The coverage is per institution – not account. In other words, only $250,000 of your total account deposits are covered at each bank. If you have more than $250,000 in assets to deposit, do so at various institutions to split up your insurance coverage.

What’s NOT covered by FDIC insurance?

• money invested in stocks
• money invested in bonds
• money invested in mutual funds
• life insurance policies
• annuities
• municipal securities

These are backed by “the full faith and credit of the United States government”, but not FDIC insurance:

• U.S. Treasury bills
• bonds
• notes

Other important points to note:

Deposits in separate branches of an insured bank are not separately insured.

It is possible to have more than $250,000 in deposits and still be covered under certain circumstances (see your bank representative).

For more info check out the FDIC website.

Related Posts:

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• America Saves Week 2011 Is Here!

How to Tell if Your Account is Fully FDIC Insured After a Bank Fails.

You may know that deposits up to $100,000 were insured against loss by the FDIC in case of bank failure, and that Congress has upped that coverage to $250,000. Here’s a release from the FDIC detailing the increase (pdf).

But what if your bank has failed and you’re not sure who assumed control or where you money is?

Well, I just found this (somewhat) handy tool at the FDIC website called “Is My Account Fully Insured?”

The tool provides a means to verify whether their bank was FDIC before it failed. Just select your failed bank from the drop down list and hit submit. I said it’s “somewhat” useful because:

“This service will be available for use no later than the first business day after a bank failure and will remain posted for 30 days. After 30 days the data will be removed. This service is only available for banks that failed after July 1, 2008.”

But it still may be of use to you. Here’s some sample results:

For WAMU, Henderson, NV:

“The full balance of each of your deposit accounts has been transferred to JPMorgan Chase Bank, National Association, Columbus, Ohio. To inquire about your deposits accounts call JPMorgan Chase Bank at your local branch office.”

But for IndyMac Bank, F.S.B., Pasadena, CA:

“This tool will only display the status of your account at bank failure and remain posted for 30 days.

Your data has been removed.”

Not so useful, huh? Some banks give detailed info with phone numbers and contact info for a next step. I suppose it’s better than nothing?

Check it out for yourself.

Photo by cramsay23

Related Posts:

• What Do the FDIC Insurance Limits Cover?
• FDIC Myths, Legends and Misconceptions.
• Best High Yield Savings Account Rates Of 2011.
• Which is Larger: Your Credit Card Debt or Your Savings Account?
• America Saves Week 2011 Is Here!