Best 1-year Certificate of Deposit yields
Today I bring a new post with the best 1-year CD rates that I can find.
The FDIC has closed thirty-eight banks thus far in 2010. They are on pace to close even more this year over last 2009. 200 to 500 of banks are in the under-capitalized category and most of those will not be able to recover. Still looming residential losses plus impending commercial losses will just break the camels back.
When thinking about 1-year CD interest rates you want your bank to hang around for a while. So check for the health of the financial institution.
Nevertheless here are some jumbo CD yields I found.
It seems that credit unions are leading the pack.
Alliant Credit Union has a 2.10% APY for a one year Certificate of Deposit. The rate is good from 1-year to 23-months. Interest is paid at maturity only. 5-star Rating.
Melrose Credit Union in New York has a 2.07% interest rate.
Amazingly, I found a bank with a 2.00%. Most banks are in the 1.50% range because of the FDIC National rate cap. Check out First City Bank. 2.00% APY. They can be reached at 888-244-5151. Of course there are a couple of caveats. It is a 15-month CD which is what gets them around the FDIC cap. They have a 0-Star rating. And to make it worse, they are located in Florida. But they are FDIC insured.
Franklin Synergy Bank has a 1.95%, also for 15-mos. They are out of Franklin, TN. They have a 2-star rating.
Use the FDIC or NCUA website to do your own safety check. Take a look at the various ratios. Look for a E/A ratio above 7%, a total risk based capital above 10% (only applicable to banks), and if the institution has a loss, make sure it is only about 25% of the capital when you adjust for yearly earnings. These are just suggestions. The web also offers some free bank and credit unionrating tools. One is found at bankrate[dot]com.
