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:

• Melrose Credit Union at 1.66% APY with a minimum deposit of $5,000.
• Country Bank at 1.65% APY with a minimum deposit of $500.
• Metropolitan National Bank at 1.60% APY with a minimum deposit of $1,000.
• Bank of Internet an online based bank at 1.55% APY with a minimum of $1,000.

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.

It seems like a bank would want to hold on to the top spot of any CD rate terms, even if it was just for a week, but it only took a matter of a few days before Bank of Internet decided to lower their rates.

The next best 24 month CD rate goes to Stonebridge Bank which is rated 1 out of 5 stars from Bankrate, which means ‘Lowest Rated’. That does not necessarily mean the bank is failing, but can give a good indication on how well the bank is performing. As long as the bank is FDIC insured, your money will be safe up to $250,000.

Here are the most up to date 24 month CD rates after Melrose:

• Stonebridge Bank at 1.65% APY with a minimum deposit of $500.
• Bank of Internet at 1.60% APY with a minimum deposit of $1,000.
• Discover Bank at 1.60% APY with a minimum deposit of $2,500.
• Colorado Federal Savings Bank at 1.60% APY with a minimum deposit of $5,000.
• Aurora Bank at 1.58% APY with a minimum deposit of $1,000.
• Ally Bank at 1.57% APY with no minimum deposit.

These banks offer no restrictions on who can open an account and invest into their certificate of deposits. Melrose Credit Union has no restrictions on who can apply for their credit union and only charges a $1 fee.

Be sure to check our CD Rates page for the most up to date information.

This might be a sign of things to come as rates continue their slide down the charts. No other bank or financial institution is close to paying 2% on any 24 month CD. Keep in mind that the national average of a 2 year CD is sitting right around 0.77% APY.

Here are the next best 2 Year certificates of deposit:

• Melrose Credit Union at 1.76% APY with a minimum deposit of $5,000 and is located in Queens, NY.
• Presidential Bank at 1.75% APY with a minimum deposit of $1,000 and is located in Maryland, Virginia and Washington D.C.
• Bank of Internet at 1.72% APY with a minimum deposit of $1,000 and is an online bank from San Diego, CA.
• Discover Bank at 1.65% APY with a minimum deposit of $2,500 and is the online bank owned by the credit card company.

All of these banks and credit union allows anyone to join or buy their CDs. Melrose Credit union allows anyone to join for only $1. They impose no restrictions and are located out of Queens, New York.

Be sure to compare all of the best CD rates from our certificates of deposit database.

By following all of the top CDs, we can tell you that the average rates have fallen for the 24^th straight month in October. Bankrate keeps track of hundreds of banks and their CD rates and every month the average rate continues to decrease. There are those few and far between moments where we find a great deal such as iGObanking’s 2.25% 2 Year CD, I don’t expect this to last much longer.

Long-term rates are being hit the hardest and while the Fed has started their new bond-buying program, interest rates are expected to fall across the board over the next many months. I do not see how our leaderboard’s rates can stay this high over the next few days and weeks.

Ally is one of the more stable financial institutions with a 4 of 5 star rating from Bankrate and is also FDIC insured. Ally offers a one time rate increase if they ever increase their rates on any of their certificate of deposits. Their 2 year CD rate of 1.60% may be a good deal because they have no minimum deposit and if they increase their rates in the next few months you will also be able to increase your rate. With their one time rate increase, if CD rates increase in 2011, you will have the option of capturing the better rate without starting a new 2 year term.

Ally does have an early withdrawal penalty for any withdrawals before the maturity date. The fee is equal to 60 days interest.

Be sure to compare how Ally’s CD rates stack up against other banks and financial institutions.

The great aspect of this CD is the low minimum deposit of $500. Some certificates of deposit require a much higher minimum, forcing many people to look elsewhere.

Federation Bank is located in the great state of Iowa and branches can be found in Brighton, Wellman, Richman and two in Washington. In 2003 Washington Federal and Rubio Savings Bank merged to form Federation Bank, while Rubio Savings has been around since 1906. This is a bank that is well developed and offers other great services other than their excellent CD rates. Be sure to visit a branch location nearest you for other CD rate offers.

• 30 days = All Interest
• 2-18 Month CDs = 3 Months Interest
• 2 Years+ CDs = 6 Months Interest

Some banks have stricter penalties, so be sure to read the fine print!

Ally Bank’s No Penalty CD is only available in the 11 Month term, with a current rate of 1.35 percent. This is a pretty good rate since you can take your money out at any time after the first 6 days without paying a penalty. This 11 Month CD currently beats many 12 Month CDs from major banks, Credit Unions are the exception.

Ally Bank’s Raise Your Rate CD is only available for the 2 Year term, with a rate of 1.92%. With this CD, you have the option of raising your rate once within the 2 year term. If rates go higher than 1.92% you can bump your interest rate up to the higher level.

Here is a list of all of Ally Bank’s CD Rates:

• 3 Month Bank CD Rates – 0.69% APY
• 6 Month Bank CD Rate – 1.14% APY
• 9 Month CD Rate – 1.00% APY
• 12 Month CD Rates – 1.48% AP
• 18 Month CD Rate – 1.60% APY
• 3 Year CD Rate – 2.24% APY
• 4 Year CD Rate – 2.46% APY
• 5 Year CD Rate – 2.94% APY

CD Rates are constantly changing, so to find the most up to date rates, visit Ally.com

Ally Bank makes it easy and stress free to sign up for any of their CD products.

• Open an account with $0.
• No monthly fees.
• The extra peace of mind Ally’s Ten Day Best Rate Guarantee.
• Compounded interest daily to maximize your earnings
• FDIC insured
• Automatic renewals at maturity
• Ally gives you the ability to withdraw and receive earned interest as income.

The early withdrawal penalty with Ally is only 60 days’ interest and does not apply to a No Penalty CD.

If you were to deposit $5,000 for the 2 year CD at 1.92% APY, at the end of two years you would make $193.65 and at $10,000 deposited for the same term you would earn $387.30. These rates are still better than:

• Bank of America 1.10%
• ING Direct 1.10%
• Chase 1.01%
• HSBC Advance 0.75%

It is easy to fund a new account with Tennessee Commerce Bank, either through ACH transfer, wire or check. Applications can be submitted through their website, by mail or even fax. Two forms of ID will be needed to open one of the CDs. Sending money via a wire transfer is free, but an outgoing wire will cost $25.

To close your CD at maturity you will need to submit the request in writing, otherwise the CD will be renewed for another term.

Tennessee Commerce Bank has a 2 of 5 star soundness rating through Bankrate and is FDIC insured.

Be sure to visit their website here for more updated CD rate offers.