Best CD Rates Round Up – Updated: August 2009
Yes, it is about that time. What time is that? It's, time for a High Certificate of Deposit Interest Rate Round-up. I hope you know the time involved in putting this together. But, I love you all, so here you go. I wish I could link to all the banks, but these sites don't allow for that.
For our first rate find, I have Discover Bank with a 1-yr at 1.98%. They were founded in 1911 and became FDIC insured in 1934. Discover Bank is based in the state of DE. The bank is quite large with $37.5 Billion in assets. Certainly during a recession, it is tough to be a credit card bank. They have a first quarter loss of $69.3 Million. They are known to be well capitalized though. Their FDIC number is 5649. Discover Bank has earned a 3-star rating. As you'll see below, they have some competition. Maybe they will take note of my round-up and bump their CDs.
Next, if you are looking for something short-term, DanversBank maybe a good place to look. A small thought provoking fact here. They were established in 1850, but didn't become FDIC backed until 1985. Numerous people had a lot of faith in this bank. They have a 4-month special at 2.00%. I'm guessing they have a short-term deposit problem. Typically banks offering high yielding short-term CD rates are trying to lure you in. After the initial period, the renewal rates are bound to be low. So keep an eye in the mail and be ready to move on. DanversBank's FDIC number is 90185. They have about $1.7BB in assets, had a 1st quarter profit, they are considered well capitalized, and earned a 3-star rating.
Wilshire State Bank (FDIC 23301) is located in the state of CA. With one of the greatest CD Rates of 1.96% , Wilshire State Bank was started in 1980. They also have one of the top CD Rates for 1-year at 2.15% APY. They have an amazing 4-star rating.
I found a pretty good 2y deposit rate with Citizens First Savings Bank, Port Huron, Michigan (FDIC 30005). For MI CD Rates this is an especially good yield at 2.50%. Sadly, the bank is in bad shape. Even more sad, they have been around since 1938. With a 1-star rating they are not well capitalized and have very low capital ratios.
High 2-yr yields in low quality banks must be very popular. Frontier Bank, WA (FDIC 22710), also has a 2-yr rate at 2.50%. This certificate of deposit also has a 1-times bump option. They have a 1-star rating even though they are considered well capitalized. Large losses are taking a toll.
Bank quality isn't geting much better. We finish our round-up with Acacia Federal Savings Bank (FDIC 32266) and Northpointe Bank (FDIC 34953). Acacia has a 5-year at 3.60% APY with a 2-star rating and Northpointe has a 3Y at 3.00%, but only 1-stars.
Now, as long as you stay under the FDIC insurance limits, which is $250,000 through 12/31/13, if a bank fails you won't lose a dime. And the FDIC has been very fast about returning CD proceeds. Keep in mind, most bank closures this year have not been complete shut-downs. The FDIC has arranged for acquisitions by other more sound banks. Please watch the terms on your CD carefully. I wouldn't invest above $100,000 for CDs that will mature beyond 12/31/13.
For other yields by state come by Texas CD Rates. For just some plain 'ol fashioned rate busting, stop by Online Best CD Rate.
