High Yield CD Rates: 2012 Best CD Interest Rates

Posted By Nathan Richardson On Wednesday, June 30th, 2010 With 0 Comments

Below are the highest yield certificate of deposit rates by top traditional and online banks. These rates are from banks that are FDIC insured, covering depositors up to $250,000.

Use the Form Below To Sort The Best CD Rates.

Compare June 2011 Bank CD Interest Rates

Below you will find the best Certificate of Deposit rates in the current interest markets. We only show the highest-yielding CDs from trusted and well-reviewed banks. Most of the Certificate of Deposits below are offered by national or online banks. Most of these CD Rates are higher than you would expect at your local credit union or bank, because these banks compete for your investment by offering a higher CD rates.

We will rank these CDs based on an initial deposit of $10,000 and sort by the highest rate first. All CD rates are shown as : APY (Annual Percentage Yields) – Minimum Deposit – Institution Name.

What factors affect CD Bank Rates?

Certificate of Deposits’ rates will fluctuate based on the current interest rates, the amount of deposit, the bank or credit union and length of maturity. When current interest rates are low, there no incentive to win ‘business’ by offering a high cd rate, when they could borrow from another bank or the government. By investing in a longer term CD, the banks have more flexibility with your money and thus pay a higher interest rate.

By investing more money, for example $100,000 or more ( the definition of a Jumbo CD ), banks usually (but not always) will offer a higher rate.

Depending on the organization, the bank or credit union may issue a flat rate for deposits or a variable rate. The banks and credit unions may also offer a higher yielding cd if they are NOT insured by the FDIC or NCUA – as these CDs carry larger risk.

Why Invest in a Certificate of Deposit?

Certificate of Deposits or CD, are safe – very safe. Most CDs are federally insured up to $250,000 by either the FDIC or NCUA. These CDs also pay a higher interest, and thus yield a higher rate than putting them in a savings account.