The best 12 month CD Rates we could find for Monday July 12^th, 2010 are sitting around 1.55% APY. CD Rates are expected to head to higher grounds after the end of this year and early next year. As the US economy continues to slow down and inflation stays where it’s at, the Fed has no reason to raise interest rates. As long as the Fed keeps interest rates at record lows, the interest rates on CDs will stay the same. As soon as interest rates begin increasing, so will CD Rates.

The national average for a 12 month CD is 0.83 percent starting this week. Even though this national average rate is dismal, you will find better luck with a local bank or credit union or an institution online for a much higher rate. Do not get stuck with this rate, as you can find much higher rates from Flagstar Bank and Sallie Mae.

Both of these banks are currently offering 12 month CD rates at 1.55% annual percentage yield.

Flagstar Bank requires a minimum of $500 for their CD and Sallie Mae has a minimum opening deposit of $1. These might be a good option if you are looking for a place to put a small amount of cash and earn more than the current 1.1% interest rate on a high yield savings account. The only downside to putting money into a certificate of deposit is you have to wait the full 12 month term or risk losing money from an early withdrawal penalty