Average one year CD rates have sunk below 1% APY. But if you put a little time and effort into researching rates, it's possible to find rates in California significantly above that level. Spending a few minutes of your time might put hundreds of dollars into your pocket - with no additional risk. We checked the BestCashCow rate tables and found the following deals for California (note, all banks are FDIC insured).
- American Plus Bank is offering a 12-month CD that pays 1.26% APY with a $10,000 minimum balance. American Plus has two branches located in and around Acadia, California and $167 million in assets. The bank's financials look pretty solid with a Texas ratio of 8.92% versus a national average of 21.06% (the lower the Texas ratio the better).
- Another bank in Southern California, First Choice Bank is offering a 12-month CD that pays 1.25% APY with a $100,000 minimum balance and 1.20% APY with a $5,000 minimum balance. First Choice was founded in 2005, has $210 million in assets and two branches located in Cerritos, CA and Alhambra, CA. The bank has an extremely low Texas Ratio of .66% (lower is better). The bank has also shown rapid growth in assets, loans, and deposits since 2006.
- If you live in San Francisco, then Metro United Bank is offering a 12-month CD that pays 1.05% APY with a $5,000 minimum balance. The bank has $400 million in asets and seven branches, two in the San Francisco area and the rest in near Los Angeles.
One interesting finding is that banks centered around Los Angeles tend to offer higher rates than banks in the nothern part of the state. The top 15 listings on the rate tables were for banks that had branches in Los Angeles but none in San Francisco. I'd welcome any comments about this from residents of the state or either of these cities and will be looking into the data more. But for now, it appears that not all if equal in California when it comes to CD rates.
If you don't live near these bank branches or just want to see more options, then search for the best cd rates in your local area. You can also check out the best online cd rates, which offer rates well above the national average. You can do all of that by clicking on the CD tab above.
To understand how earning even half a percentage point more can put a lot more money in your wallet over time, please visit our financial knowledge section.