Yep, it is about that time. What time is that? It’s, time for the best Certificate of Deposit Rate Round-up. I hope you know the time involved in putting this together. But, I like you all, so here ya go. I wish I could link to all the banks, but these sites don’t allow for [...]
Yep, it is about that time. What time is that? It’s, time for the best Certificate of Deposit Rate Round-up. I hope you know the time involved in putting this together. But, I like you all, so here ya 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 for 1-year at 1.98%. They were founded in 1911 and became FDIC insured in 1934. Discover Bank can be found in Delaware. The bank is quite big with $37.5 Billion in assets. Sadly, being a credit card bank during an economic down turn is difficult. They have a first quarter loss of $69.3 Million. They are known to be well capitalized however. Their FDIC number is 5649. They have 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 rates.
Next, if you are looking for something short-term, DanversBank maybe a good place to look. A tiny thought provoking tidbit here. They were started in 1850, but didn’t become FDIC insured 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 inside. 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 Golden State (CA). They were started in 1980 and have an excellent 6-month CD rate of 1.96%. They also have one of the highest CD Rates for 1y at 2.15% APY. They have an excellent 4-star rating.
I found a pretty good 2y certificate of Deposit rate with Citizens First Savings Bank, Port Huron, Michigan (FDIC 30005). For MI CD Rates this is an especially good rate at 2.50%. However, 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 2Y yields in low quality banks must be all of the rage. Frontier Bank, WA (FDIC 22710), also has a 2-yr rate at 2.50%. This CD 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 end 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 quick about returning money. However, 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 though. 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, come by Online Best CD Rate.
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