Best CD Rates Are Found At Local Credit Unions

Before we start talking about Credit Unions we did want to report that MainStreet Bank still has a great rate on their 36 Month CD at 2.00% APY. You have to go through their airbanking.com website and act like you are signing up as a new member to view their CD rates.

Time and time again we have seen credit unions beat out the big banks on the rates they offer for not only savings accounts but also certificates of deposits. Most Credit Unions are out of reach of the average person or they have strict membership requirements, one of the many reasons why they can offer higher rates. Right now Melrose Credit Union has held the top spot for most of the popular CDs, but Connexus Credit Union has higher rates for the 12 month and 60 month CDs.

We stated that many credit unions have strict requirements or do not allow just anyone to join unless if they are employees or are associated with the credit union in some manner. With Connexus Credit Union anyone can join by registering through the Connexus Association and pay a one-time fee of $5. You then have to open a savings account with another $5. To receive the higher rate on CDs with Connexus, you will have to open a checking account, which has to be an ‘active account’. They define an active account as:

having at least 1 Direct Deposit of net pay, including salary, wages, government benefits or pension made to the account each month. Have 10 checks, ACH withdrawals and/or signature debit card transactions clear the account by the last business day of each month, and electing to receive eStatements.

We asked how much checks cost and were told for a box of 150 checks the cost was $14.76. Connexus Credit Union is located in Wausau Wisconsin.

Connexus has a minimum deposit of $10,000 to receive their highest rates. For balances under $10,000 you will lose about 0.50% APY.

  • 12 Month CD rate of 1.75% APY versus Melrose Credit Union at a rate of 1.31% APY
  • 60 Month CD rate of 3.00% APY versus Melrose Credit Union at a rate of 2.83% APY

The national averages for both the 12 Month CD stands at 0.43% and 60 Month CD at 1.53% as stated by the FDIC.

The bank offering the highest 12 month CD is AloStar Bank of Commerce at 1.27% and the bank offering the highest 60 month CD is First Internet Bank of Indiana at 2.40% APY.

It might be worth going through some of the hurdles at your local credit union to get the higher CD rate. Some credit unions, such as those listed here are open to anyone, anywhere within the United States and have few restrictions. You can always find the best CD rates by going through our database of banks on our CD rates page.


CD Rates Hold Steady, But For How Long?

Today the Dow dropped 634 points or down 5.55% to 10,809. This is the lowest the Dow has been since 2008 and comes after the week of the US debt ceiling hike and downgrade of the US debt from AAA to AA+ by S&P.

Today a few banks have already lowered their rates on short and long term certificates of deposits. The bright spot is, those banks were not offering any of the top CD rates, so who really cares or knows. The current list of the top CD rates has held steady… well so far. When you find a big gap between the first and second place holders of any CD rate, usually you will see a decrease coming from the top holder.

Here is an example of the top three leaders in each CD term starting with the 6 month CD rates. We added Melrose Credit Union to show how much higher their rates are, compared to normal bank rates, plus to get the Melrose Credit Union rate you have to become a member, which is open to everyone located anywhere in the US:

6 Month CDs

  • AloStar Bank of Commerce – 1.05% APY
  • AuroraBank – 1.04% APY
  • Ascencia – 1.02% APY

12 Month CDs

  • (Melrose Credit Union – 1.31% APY)
  • AloStar Bank of Commerce – 1.27% APY
  • E-Loan – 1.26% APY
  • Sallie Mae – 1.20% APY

24 Month CDs

  • (Melrose Credit Union – 1.56% APY)
  • MainStreet Bank – 1.50% APY
  • AuroraBank – 1.46% APY
  • VirtualBank – 1.46% APY * (has the lowest rating of 1 out of 5 stars on bankrate)

36 Month CDs

  • (Melrose Credit Union – 2.07% APY)
  • MainStreet Bank – 2.00% APY
  • Doral Bank – 1.80% APY
  • AuroraBank – 1.75% APY

48 Month CDs

  • MainStreet Bank – 2.50% APY
  • (Melrose Credit Union – 2.32% APY)
  • Transportation Alliance – 2.06% APY
  • American Bank – 2.00% APY

60 Month CDs

  • (Melrose Credit Union – 2.83% APY)
  • MainStreet Bank – 2.60% APY
  • First Internet Bank of Indiana – 2.40% APY
  • Discover Bank – 2.35% APY

As you can see most banks are being competitive in the rates they offer. The biggest gaps in rates are between the 36 Month CD and the 48 Month CD, which could mean these rates will be adjusted at any time.

You can find MainStreet Bank’s CD here.

For all of our best CD rates, be sure to visit our CD Rates page.


Are CD Rates Going To Increase This Year – 2011

It has been 1 year since we wrote about the question “Will CD Rates Go Back Up In 2011” and so far rates have kept falling. Even mortgage rates are falling to their lowest levels in a year. As I write this post the United States has lost its AAA credit rating even though a default on its debt was diverted. The United States now has a credit rating of AA+ with a negative outlook, which means that the credit rating could drop again within the next 2 years unless if Congress reigns in on its overspending and debt problems.

Every program the Fed has enacted to build up the US economy has not translated into job growth or a pick up of the economy, which would translate into higher interest rates. When the Fed bought back billions of dollars worth of treasury bonds, it was speculated that interest rates would increase based on the growth of the economy and the increase of inflation. Once inflation increases so should interest rates.

In the past few weeks many CD rates were cut down a few basis points. Before the debt ceiling deal happened many were speculating that CD rates would actually increase because of Treasury yields being forced up by the small possibility of the United States defaulting. As Treasury yields increase so will interest rates, but right after the debt ceiling deal was passed, the stock market started crashing and Treasury yields actually started plummeting. Just this past week mortgage rates dropped close to 4.31%, down from 4.51% last week. It looks like CD rates will most likely continue their downward fall to record lows. How far will they go? Depends on multiple factors, but as long as the economy drags along there isn’t much hope for an increase in rates any time soon. I guess we should be asking the question “Will CD Rates Go Back Up in 2012” or more likely, ‘Will CD Rates Ever Go Back Up”. We thought last August 2010 that CD rates would surely be on the rise, since we haven’t created a magic ball and since no one can really predict the increase of rates, we made an educated guess that was completely wrong. We still have five months left in 2011 to see if rates will increase.

Here are some of the more active banks that consistently have some of the highest CD rates available nationally:

Bank of Internet cut its 12 month CD from 1.33% down to 1.20% and they also cut their short term 6 month CD rate of 1.15% down to 1.01%. The new leader for the 12 month CD term is now E-Loan at 1.26%.

First Internet Bank of Indiana currently holds the top spot for the 5 Year CD at 2.40% APY with a minimum deposit of $1,000. Discover Bank comes in second with a rate of 2.35% APY with a minimum deposit of $2,500.

If you are looking for the best CD rates, you might find better luck looking at your local credit union or a credit union that has no registration requirements like Melrose Credit Union out of New York.

You can always find the best cd rates here at bankaim.com.



E-Loan Holds Highest 1 Year CD At 1.26%

The 1 Year CD rate has dropped from 1.33% down to 1.26% in just 12 days. The previous top earner was from Bank of Internet, which is now tied in second place at 1.20%.

E-Loan holds the top 12-month CD rate at 1.26% with a minimum deposit of $10,000. No other banks or financial institutions hold a rate close to E-Loan, as the next best 1 year CD goes to Sallie Mae, AuroraBank and Bank of Internet at 1.20%. Sallie Mae has no minimum deposit while both AuroraBank and Bank of Internet have a $1,000 minimum deposit.

There is one bank – First Foundation Bank that holds a 1.27% interest rate on the 12 month CD, but the minimum deposit is out of reach for the average investor at $25,000. Some might argue that tying up this amount of money for 12 months can be risky as rates can go up at a moments notice, or vice versa, rates can drop in a moments notice. For instance just 12 days ago you could have had a 1.33% 12 month CD rate.

E-Loan has an easy online application and has no fees to start. They also offer a compounded daily feature on their CDs.

Sallie Mae is tied for second place at the highest 12 month CD of 1.20%. With Sallie Mae you have no minimum deposit and they compound your interest daily.

AuroraBank and Bank of Internet also come in at 1.20% and both have a $1,000 minimum deposit. Both of these banks are rated 4 out of 5 stars with Bankrate, giving them a ‘sound’ rating. Sallie Mae and First Foundation Bank come in also at 4 out of 5 stars, while E-Loan has a 3 out of 5 star rating. Three stars means the bank is performing and usually is not an indicator of troubles.

Be sure to check our up to date CD Rates table for more accurate interest rates. Rates can change on a daily basis. You may also want to consider that each term serves as a lock in period for the specific interest rate. If you wish to withdraw your money before your term is up, you will be charged a penalty and fees. Be sure to read the fine print on each Bank’s CD terms. If the bank has an auto renew feature, you could be locked into an extra term you did not really want.


Navy Federal Credit Union 12 Month CD Rate At 3%

Navy Federal Credit UnionNavy Federal Credit Union is offering a 12 month CD rate of 3%, which is currently the highest yielding 12 month CD. It’s call the Special EasyStart Certificate and comes with a few stipulations. This CD requires a minimum deposit of $50 and has a maximum of $3,000. By putting the maximum deposit of $3,000 at 3% for 12 months, you would end up making $91.25 by the end of the 12 months. These are not the best rates, but if you are planning on holding onto your money, these rates are better than almost all savings account rates and earnings are guaranteed.

Be sure to visit the Navy Federal Credit Union’s website to learn more about this Special CD offer. You can also find the best CD rates by viewing our CD rates page.


Highest CD Rate From Aurora Bank – April 2011

This April, Aurora Bank leads the pack as they offer the highest interest rate for a 12-month CD. With a 1.25% APY, Aurora Bank is giving the best rate yet for this month.

12 month CD’s gives you the most sensible comparison on just how much you can earn when you put your money in a CD rather than in a savings account. Right now, Aurora Bank savings account rates gives a 0.90% APY, a far cry from the 1.25% they can give you with a CD.

For a 12 month CD, Aurora Bank requires a $1,000.00 minimum deposit. However, if you deposit bigger amounts, higher interest rates are adjusted accordingly. Other CD terms offered by the bank are 6 month CD’s at 1.07%, 18 months at 1.38%, 24 months at 1.5%, 36 months at 1.81%, 48 months at 2.05% and 60 months at 2.39%.

Other banks that are also giving away high CD rates at this time of the year is Ally Bank at 1.24% APY, Discover Bank at 1.20% APY, Ever Bank at 1.01% APY, and SallieMae at 1.00% APY.

Aurora Bank has been into consumer banking for 85 years, with headquarters at Wilmington Delaware. The bank services over 340,000 customers and offers a wide range of services from checking accounts, savings accounts, money market, certificates of deposit, loans, and many more.


Top 10 Banks With the Best CD Rates for 2011

Looking for the best Certificate of Deposit (CD) rates to get your money growing at the early parts of the year 2011? Looks like banks from all over America are here to help you earn money out of money.

Certificates of deposit will allow your money to earn interest at a fixed rate set by the bank. With a minimum requirement, you’ll be able to earn much more than your regular savings account without having to tie your money to an establishment for a long time. CD’s can give you fixed returns at a period of 30 days, 60 days, 6 month CD’s, 1 year, and more, depending on what type of CD the bank offers, and the CD you choose. So where can you go to make the most out of your money?

Right now, the top 10 12 month CD rates range from 1.24% to 1.35% interest rates. It may not be as high as CD’s in previous years, but these CD rates are as good as it gets for now. Leading the pack is the Metropolitan National Bank of New York City. With a minimum deposit of only $1,000, depositors can enjoy the highest CD rate with a relatively small amount of deposit.
Investors not located in New York City need not worry since anyone can open an account online through their website. One thing depositors have to note however is that if they would like to collect their interest at maturity, they will have to inform the bank ahead of time as the bank will automatically roll the money into another 1 year CD. Early withdrawals will suffer a penalty, so it’s best to keep track of the timeline.

Other banks that give as much as 1.30% interest on one-year certificates of deposit are Bank of Internet USA in California, Incredible Bank in Wisconsin, and Ascencia, PBI Bank in Louisville Kentucky.

Below is a list of the top 10 banks with the best CD rates by far. Find out if you have one near your area, if not, you could always go ahead and open an account online.

1.    Metropolitan National Bank
New York, NY
Interest Rate: 1.35%
Minimum Deposit: $1,000

2. Bank of Internet USA
San Diego, CA
Interest Rate: 1.30%
Minimum Deposit: $1,000

3.  Incredible Bank
Wasau, WI
Interest Rate:    1.30%
Minimum Deposit: $10,000

4. Ascencia, a div. of PBI Bank
Louisville, KY
Interest Rate: 1.29%
Minimum Deposit: $1,000

5. Transportation Alliance Bank
Ogden, UT
Interest Rate: 1.25%
Minimum Deposit: $1,000

6. Aurora Bank, FSB
Wilmington, DE
Interest Rate: 1.25%
Minimum Deposit: $1,000

7. 89 Goldwater Bank
Scottsdale, AZ
Interest Rate: 1.25%
Minimum Deposit:$5,000

8. Ally Bank
Midvale, UT
Interest Rate: 1.24%
Minimum Deposit: $0

9. Nationwide Bank
Columbus, OH
Interest Rate: 1.24%
Minimum Deposit:$500

10. MetLife Bank
Bridgewater, NJ
Interest Rate:    1.24%
Minimum Deposit: $25,000

For those who are low on cash, Ally Bank in Midvale Utah will give you the best deal there is. With a 1.24% CD rate and no minimum deposit required, it gives hope to the starting investor.

When shopping for CD rates, it’s always best to check out the fees that might come along with it. Be aware of the rules your bank imposes and get the lowdown on taxes, fees and penalties. This will help you make the smarter decision on getting the most out of your money.


Walden Savings Bank Offers 6 Month CD Rate At 0.75%

Looking for a short term place to store your cash? Placing your money into a certificate of deposit will earn you more than most bank savings accounts. By putting your money into a 6 month CD, you not only earn more than the average savings account, but you also don’t have to wait too long before you have access to that cash again. Short term CDs are a great way to earn a quick few bucks while you wait to make that purchase or if you are waiting to use that cash. I recently placed my money into a 6 month CD because I knew I could earn more than leaving it in a savings account, but also wanted the ability to use my money in the next 6 months to buy a house. Right now isn’t a good time to buy a house, so my money was just sitting in my bank account collecting dust, or a few pennies from its extremely low and offensive interest rate.

Walden Savings Bank has been around for over 135 years and has always provided some of the best CD rates to its customers. Walden is currently offering its six month CD rate at 0.75% APY, with a minimum deposit of only $1,000. This CD will automatically renew at the end of its term so its important that you let the bank know your intentions during that time, otherwise you might get stuck in another 6 month term. There are penalties for early withdrawals so be sure you read the fine print.

Walden Savings Bank is headquartered in Montgomery, New York and is a federal chartered mutual savings bank that opened in 1872. Walden Savings Bank maintains 11 full service branches in southeastern New York (Walden, Washingtonville, Montgomery, Cornwall-on-Hudson, Pine Bush, New Windsor, Gardiner, Scotts Corners, Circleville, Middlehope and Florida). You will want to visit one of their branches to learn more about their savings and other options offered.

Be sure to check out our most up to date CD rates table to find the best rates for any CD term.


24 Month CD Rates Stay At 1.75%

Salem Five BankOver the past few weeks, CD rates have changed quite a bit. Banks seem to be battling out for the top spots of most of the CD rate terms. This battle between banks isn’t much to write home about, but it’s a positive sign that CD rates might actually go up in 2011.

One of the most popular CD terms is the 24 month certificate of deposit which has not moved since Jan. 12, when Salem 5 Bank took over the spot from Melrose Credit Union. The Salem, Mass. based bank offers a rate of 1.75% APY on a minimum deposit of $10,000, kind of high for the average person.

These rates are much higher than what the large banks are offering and are much higher than the national average, which is currently sitting at 0.73% APY (24-month term). So if you want the best CD rates then you must look further than your local bank. Be sure you do your research to find the best CD rates, before signing anything at any bank.

Here are the next best 24-month rates:

If you find it hard to put $10,000 into a certificate of deposit then there are other great options. By putting extra money into a CD, you can usually get the best rates. Some banks offer lower minimums of $500, but you lose some of your interest. Usually the lost interest rates will not make much of a difference. 5 tenths of a percent will make very little difference. For example, if you put $5,000 into a 24 month CD at a rate of 1.60%, at the end of your term (24 months), you would have made $161.28 profit. Now if you placed the same amount of money into the same CD term, but lowered the rate to 1.55%, your profits would be about $156.20, a difference of $5.08 or 1 coffee! So if you cannot afford to meet the minimums of some of these CDs, then find the next best option, you probably aren’t missing out on much.

Be sure you get the best rates from your certificate of deposit by comparing CD rates from our up to date database.


Best CD Rates For February 17, 2011

This could be the first signs that CD rates will start increasing. One day after Sovereign Bank took the top spot for the 60 month CD term, a California based bank- Kaiser Federal Bank matched the same 3.0% APY. Kaiser Federal Bank raised its rates from 2.75% to 3.0% APY, making it a two way tie for the best available 5 year CD.

Kaiser requires a minimum of $10,000, which is much higher than Sovereigns’ minimum of just $500.

Here is a list of the top CD rates available nationally:

*TermBankFebruary 17December 1
3 Month CDCalifornia First0.80% APY0.95% APY
6 Month CDMetropolitan National1.15% APY1.15% APY
12 Month CDIncrediblebank1.45% APY1.51% APY
24 Month CDSalem 5 Bank1.75% APY1.76% APY
36 Month CDMelrose Credit Union2.17% APY2.27% APY
60 Month CDSovereign Bank3.00% APY3.03% APY

Be sure to get the best CD rate available by checking out our CD Rates board.

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