High Yield CD Rates Round Up – Updated: August 2009
Yes, it is about that time. What time is that? It’s, time for the best CD Interest 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 of the banks, but these sites don’t allow for that.
First, we have Discover Bank with a 1-year at 1.98%. They were started in 1911 and became FDIC backed in 1934. Discover Bank is based in Delaware. The bank is quite huge with $37.5 Billion in assets. Certainly during an economic down turn, it is difficult to be a credit card bank. 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 CD rates.
Next, if you are looking for something short-term, DanversBank maybe a good place to look. A small thought provoking tidbit here. They were founded 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 top 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.
I found a pretty good 2y deposit rate with Citizens First Savings Bank, Port Huron, Michigan (FDIC 30005). For Michigan CD Rates this is an especially high yield at 2.50%. Sadly, the bank is in bad shape. Even more depressing, they have been insured since 1938. With a 1-star rating they are not well capitalized and have very low capital ratios
In the state of CA you will locate Wilshire State Bank (FDIC 23301). With one of the top deposit rates of 1.96% , Wilshire State Bank was established in 1980. They also have one of the top CD Rates for 1-year at 2.15% APY. They have a wonderful 4-star rating.
Good 2-yr interest rates in low quality banks must be all of the rage. Frontier Bank, WA (FDIC 22710), also has a 2y deposit at 2.50%. This certificate also has a 1-times bump option. Fontier is well capitalized but losses have earned them a 1-star.
Bank quality is still a problem for the next two banks, also. We complete 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.
You won’t lose a dime, just some time, as long as you stay under the FDIC insurance limits ($250,000 through 12/31/13). And the FDIC has been very quick about returning funds. However, most bank closures this year have not been complete shut-downs. The FDIC has arranged for take-overs by other healthier banks. Do 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 rates by state stop by CD Rates NJ. For just some plain ‘ol fashioned rate busting, stop by Online Best CD Rate.