Comprehensive CD Rate Comparison Shows Healthy Competition
Comprehensive CD rate comparisons found consistently low rates in the monthly survey of almost 4,800 banks and credit unions throughout the 50 states. The Bankrate survey All of the CD accounts at banks are FDIC insured, and credit unions are NCUA insured.
The lowest rate isn’t always the best, because other factors play a major part in cost and value. Things to look at include annual percentage yield, term, minimum deposit required and any penalty charged for early withdrawal.
Currently, one-year rates range from 1.95% to 2.05% with 5-year rates as high as 2.65%. Note that the amount deposited usually makes a difference to the rate offered. The higher the deposit, the higher the available rate and the wider the range of institutions offering an account.
Some of the highest rates require initial deposits as high as $25,000. Reasonably good one-year rates, such as 2.05%, come with a low deposit requirement, even as low as $0. Effectively, the minimum deposit is $100
The current top seven five-year rates, arranged by highest rate and alphabetic name of the institution are:
For small depositors, Barclays Bank currently has a 2.05% one ear rate, with no deposit minimum. Capital One 360 set the rate at 2.0%. EH National bank lists two very short term deposits – 0.81% for one month, and 1.0% for 9 months.
Note that all the listed rates are subject to change without notice and often, the rates can vary branch to branch, as many institutions allow the bank manager to decide on the rates offered.
Also note that Bankrate says “Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com.”
This means that the rates listed should only be taken as a guide, and consumers are encouraged to use the list to inform their research.
Comprehensive CD rate comparisons by Bankrate.
