Highest 12 Month CD Rates – October 2009
The current highest 12 month CD rates (certificates of deposit) that are nationally available are currently paying up to 2.25% APY. Depending on where you live in the US, you might be able to find slightly higher interest rates than the national average.
The winner of the top 12 month CD rates currently goes to ING Direct at 2.25% APY. Most new CDs must be funded with new month to get the rate advertised. This is a way for the banks to get new money to lend or to create a cushion for their bank. New money is important to any bank and their financial well being. With their 12 month CD paying 2.25% APY, you will might be able to find local rates in your area higher than ING Direct’s CD rates. If you have an account with ING Direct and wish to transfer funds to this new CD, or if your current CD just matured you can still transfer money over and get a rate of 2.10% APY for the 12 month term.
The next best 1 year CD rate that is available nationally goes to UmbrellaBank which yields 2.06% APY. To get this rate you will need to deposit a minimum of $1,000, which is pretty low compared to some opening balances required for the higher paying CDs.
Discover Bank comes in 3rd with a rate of 2.0% APY on their 12 month CD and also they are throwing in a sign up cash bonus of $25.00. The minimum deposit to open this account is $2,500 and depending on how much you put in at first the sign up bonus could equal close to 1.0% more to the earnings of this 12 month CD.
If you know of other higher paying CD rates for October 2009 please let us know!