Chase Leading Bank of America and Wells Fargo in Big Bank CD Rates

In general, the big banks do not have as competitive savings rates, certificate of deposit rates, or money market rates as the Internet banks or the regional banks that frequently top the BestCashCow rate tables. They have a different model. Instead of top rates, they offer the convenience of a branch on every corner with human interaction and an extensive ATM network. The cost to maintain these branch and ATM networks is significant and comes out of the yield you could earn on your accounts.

But some people prefer the convenience of walking into a branch and like having an ATM at every corner. For those that do, we cover three of the big banks and look at how their rates differ. Obviously, not everyone will have access to these banks but a comparison provides some idea of how the big three - Chase, Bank of America, and Wells Fargo compare across various CD terms.

First, how much yield are you giving up depositing money at one of these banks? If we compare 12 month (1 year) Certificate of deposit rates we see the amount can be substantial. Below shows you the difference:

• Current BestCashCow 12 month CD rate leader: GMAC 3.75% APY
• Bank of America 12 Month CD Rate: 2.10% APY
• Chase 12 Month CD Rate 2.25% APY
• Wells Fargo 12 Month CD Rate 1.30% APY

The difference ranges from 1.50% APY to as high as 2.45% APY.

As the big bank rate CD rate chart shows, in general Chase has the most competitive CD rates. I's 48 month (4 year CD) rate is tied for third place on the BestCashCow Top CD Rate Table.

Chase rates have also dropped the least of the big banks. There 1 year 2.25% APY rate hasn't moved at all and while the 60 month (5 year) CD dropped by 1 percentage point, it is dropped from the leading rate down to the third leading rate.

Chase is considered the most financially sound of the big banks, having largely avoided the mortgage problems that brought down many of its peers. It used its financial strength to purchase WaMu in September '08. It now appears to be using that financial muscle to grow its deposit base and take market share from its weakened big bank competitors.