Image Courtesy: pixabay.com
Image Courtesy: pixabay.com
You are viewing rates from banks across New York
Below are the best one-year CD Rates from banks in New York. One-year CDs are usually the most popular term and offer a decent yield without having to lock-up money for an extended period of time. One year CD Rates are generally comparable to or a little higher than their savings and money market counterparts.
NY - December 11, 2024
1 Year CD National Average : 0.55% ?
| Banks | APY | MIN | MILES ? | |
|---|---|---|---|---|
|
4.70% |
$50,000 |
- |
Learn More
|
|
|
Rate History: 5.38% → 5.35% → 5.10% → 4.90% → 4.70% |
||||
|
judy | Jul 7, 2022 Insbank 1 yr is 1.5 % 18month is 1.6% 7-7-2022 Read More |
||||
|
4.58% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 5.67% → 5.41% → 5.15% → 5.04% → 4.58% |
||||
|
4.50% |
$500 |
- |
Learn More
|
|
|
Rate History: 4.00% → 4.50% |
||||
|
4.50% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 4.50% → 4.75% → 4.00% → 4.75% → 4.50% |
||||
|
Fred Theobald | Jun 15, 2017 Just a great group of people to interact with at the Mineola branch. Been working with them for years. Everybody at all of the branches has always been a pleasure. Read More |
||||
|
4.50% |
$2,500 |
- |
Learn More
|
|
|
Rate History: 4.75% → 4.50% |
||||
|
4.50% |
$250 |
- |
Learn More
|
|
|
Rate History: 5.00% → 4.50% |
||||
|
4.45% |
$500 |
- |
Learn More
|
|
|
Rate History: 4.75% → 4.50% → 5.00% → 4.75% → 4.45% |
||||
|
4.39% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 4.12% → 4.39% |
||||
|
4.35% |
$25,000 |
- |
Learn More
|
|
|
Warning: Early Withdrawal Penalty is 2% of the account balance.
|
||||
|
Frank M | Jul 3, 2023 A 2% early withdrawal fee on a 1-year CD is almost equally insane as a 270 day one. Read More |
||||
|
4.35% |
$500 |
- |
Learn More
|
|
|
4.34% |
$1,000 |
- |
Learn More
|
|
|
4.30% |
$1,000 |
- |
Learn More
|
|
|
Early Withdrawal Penalty is 180 days interest.
|
||||
|
Rob H. | Nov 21, 2023 A real pain in the *** process to try and get approved! They were unable to match my drivers license photo with my live image after several times trying! Went to limelight bank instead and got approved in ... Read More |
||||
|
4.25% |
$500 |
- |
Learn More
|
|
|
Mark Fitzpatrick | Apr 4, 2016 I been with trustco for years and it is well run. They really are a home town bank. As a small business person i appreciate the business card stand they have in the branches for there customers. I was w... Read More |
||||
|
4.25% |
$2,500 |
- |
Learn More
|
|
|
Rate History: 5.40% → 5.25% → 4.85% → 4.60% → 4.25% |
||||
|
james | Nov 18, 2023 bank delayed 1-2days to credit into your account, pay less interest. Read More |
||||
|
4.25% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 4.80% → 4.50% → 4.45% → 4.20% → 4.25% |
||||
|
Papa | Jul 31, 2020 Reduced savings rate from 1.88% to .75% a day after I deposited a substantial amount of money and no notice given or reduction in rate told to me Read More |
||||
|
4.25% |
$500 |
- |
Learn More
|
|
|
Rate History: 4.75% → 4.50% → 5.00% → 4.50% → 4.25% |
||||
|
Douglas H | Feb 5, 2020 The employees of this bank are helpful but the bank's systems and procedures for obtaining your account information STINK. If you want a bank that provides you quarterly (or even annual) statements by mai... Read More |
||||
|
4.25% |
$500 |
- |
Learn More
|
|
|
Rate History: 4.85% → 5.00% → 4.70% → 4.20% → 4.25% |
||||
|
4.25% |
$5,000 |
- |
Learn More
|
|
|
Rate History: 4.50% → 4.25% |
||||
|
Dana E. | Mar 20, 2016 Good solid bank. Read More |
||||
|
4.25% |
$1,000 |
- |
Learn More
|
|
|
Early Withdrawal Penalty is 90 days interest.
|
||||
|
smithy1968 | Apr 20, 2024 Save your tears for another day. Very frustrating. 1-star. Read More |
||||
|
4.20% |
$1,000 |
- |
Learn More
|
|
|
Early Withdrawal Penalty is 90 days interest.
|
||||
|
Dkplan | Dec 27, 2022 They gave a hard time with their cashier's check. They returned my deposited check that was emitted by them. Could you believe? Read More |
||||
|
4.20% 0.30% |
$250,000 $1,000 |
- |
Learn More
|
|
|
Rate History: 4.60% → 4.70% → 4.65% → 4.50% → 4.20% |
||||
|
NORTY FLATZ | Dec 3, 2019 Have done business with "Hope's" San Diego branch for a few years. Always courteous and helpful. Looking forward to doing business with them in the future. Read More |
||||
|
4.20% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 5.00% → 4.60% → 4.20% |
||||
|
lrcbob | Jul 26, 2024 Multiple roadblocks trying to set up a savings account with Ivy Bank and my application was ultimately declined, in spite of my multiple CDs among three banks, stock investments, eleven credit cards, and c... Read More |
||||
|
4.15% |
$5,000 |
- |
Learn More
|
|
|
4.15% |
$500 |
- |
Learn More
|
|
|
Rate History: 4.75% → 5.00% → 4.50% → 4.25% → 4.15% |
||||
|
adirondackgirl | Oct 29, 2018 I believe you must live in Utica or surrounding area to qualify for opening an account with them - I inquired a few years ago Read More |
||||
|
4.05% |
$500 |
- |
Learn More
|
|
|
4.00% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 4.70% → 4.40% → 4.30% → 4.10% → 4.00% |
||||
|
john | Apr 14, 2020 I call HSBC they told me they don't have 1.85 1 year CD. current CD is 0.8 / year Read More |
||||
|
4.00% |
$0 |
- |
Learn More
|
|
|
Rate History: 5.00% → 4.50% → 4.20% → 4.10% → 4.00% |
||||
|
highstream | Jan 2, 2024 Like others, I've been with Capital One and its predecessor ING Direct since 2007. I've also been getting cheap bank rates on my savings account and didn't realize that there was something better, although... Read More |
||||
|
4.00% |
$500 |
- |
Learn More
|
|
|
SadSack | Dec 2, 2022 No such limits as referred to by Jonathan. Perfectly Happy with service and keep adjusting the rate! Read More |
||||
|
4.00% |
$500 |
- |
Learn More
|
|
|
Rate History: 4.50% → 4.25% → 4.00% |
||||
|
Maggie | May 11, 2023 They made mistakes twice and would not correct them Read More |
||||
|
4.00% |
$500 |
- |
Learn More
|
|
|
Warning: Early Withdrawal Penalty equals one year of interest.
|
||||
|
JuanVelasco | Mar 17, 2023 STAY AWAY ! They closed my accounts with no warning. After multiple successful direct deposits and mobile checks deposits, they claimed one of the three checks I deposited a few days ago was fake. No... Read More |
||||
|
4.00% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 5.30% → 5.10% → 5.30% → 4.25% → 4.00% |
||||
|
lrcbob | Jul 26, 2024 Multiple roadblocks trying to set up a savings account with Forbright and my application was ultimately declined, in spite of my multiple CDs among three banks, stock investments, eleven credit cards, and ... Read More |
||||
|
4.00% |
$1,000 |
- |
Learn More
|
|
|
3.95% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 4.25% → 3.95% |
||||
|
3.85% |
$100 |
- |
Learn More
|
|
|
Rate History: 4.25% → 4.30% → 4.25% → 3.85% |
||||
|
an | Apr 25, 2022 We would not be having all this trouble with people sealing money out of other people's bank accounts if we were to just stop using fancy banking like onlinebanki Read More |
||||
|
3.75% 0.05% |
$10,000 $10,001 |
- |
Learn More
|
|
|
Rate History: 5.00% → 4.00% → 4.50% → 4.00% → 3.75% |
||||
|
Turonemckinney17@gmail.com | May 19, 2018 Experience Read More |
||||
|
3.75% |
$500 |
- |
Learn More
|
|
|
Rate History: 4.75% → 4.55% → 4.50% → 4.40% → 3.75% |
||||
|
3.75% |
$500 |
- |
Learn More
|
|
|
Rate History: 1.50% → 1.75% → 4.00% → 3.85% → 3.75% |
||||
|
3.75% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 4.00% → 4.50% → 4.00% → 3.75% |
||||
|
3.70% |
$500 |
- |
Learn More
|
|
|
Rate History: 4.25% → 3.82% → 4.25% → 1.46% → 3.70% |
||||
|
3.54% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 3.85% → 3.64% → 3.54% |
||||
|
3.51% |
$100,000 |
- |
Learn More
|
|
|
Rate History: 0.03% → 3.75% → 4.25% → 3.75% → 3.51% |
||||
|
Treasure | Jul 24, 2023 BOFA is a den of people thieves camouflaged as bank operatives. There’s a soon to be uncovered carrel of money laundry there. They took all my money and don’t want to release it to me for no particular... Read More |
||||
|
3.50% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 4.50% → 3.75% → 4.50% → 4.00% → 3.50% |
||||
|
Claire blankinship | Aug 5, 2020 I used to go to M&T when it was still Provident Bank. M&T has been very responsive to my needs and I have been pleased with the banking experience. Read More |
||||
|
3.50% |
$501 |
- |
Learn More
|
|
|
Rate History: 4.25% → 4.00% → 3.75% → 3.50% |
||||
|
Maggie | May 11, 2023 They made mistakes twice and would not correct them Read More |
||||
|
3.50% |
$500 |
- |
Learn More
|
|
|
Rate History: 3.70% → 3.80% → 4.05% → 4.00% → 3.50% |
||||
|
3.50% 0.40% |
$5,000 $4,999 |
- |
Learn More
|
|
|
3.30% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 3.20% → 3.25% → 3.30% → 3.35% → 3.30% |
||||
|
Ed | Jan 5, 2018 BEWARE of their Home Equity Loan practices. Towards the end of the process, after you've complied with all their requests and are on the hook for lots of fees if you cancel, they demand that all of your cr... Read More |
||||
|
3.25% 3.00% |
$100,000 $10,000 |
- |
Learn More
|
|
|
Rate History: 3.00% → 2.00% → 3.50% → 3.25% |
||||
|
Hayley7788d@outlook.com | Jan 2, 2023 Terrible customer service by investment side. Fees too high , too full of themselves Read More |
||||
|
3.25% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 4.80% → 3.00% → 3.25% |
||||
|
3.25% 2.75% |
$100,000 $25,000 |
- |
Learn More
|
|
|
Rate History: 2.00% → 1.50% → 3.25% |
||||
|
Thy King | Feb 6, 2023 after over 100k in transactions through this bank in the course of a year not only did i suffer from fraud but this bank closed my accounts and i have been lliable for all the losses and to top it off with... Read More |
||||
|
3.00% |
$1,500 |
- |
Learn More
|
|
|
Rate History: 4.00% → 3.00% |
||||
|
3.00% |
$1,500 |
- |
Learn More
|
|
|
Rate History: 1.20% → 3.00% |
||||
|
Ryan | Feb 13, 2018 Is it legal to bring someone into the branch and shake them down and threaten them when they want to redeem their CD upon maturity (as opposed to allowing it to automatically renew)? If not, these guys an... Read More |
||||
|
2.75% |
$500 |
- |
Learn More
|
|
|
Rate History: 1.70% → 3.00% → 2.75% |
||||
|
Jabbroadway42 | Nov 17, 2020 Is notarie services available today at a woodforest on wilkinson blvd Read More |
||||
|
2.75% |
$0 |
- |
Learn More
|
|
|
Richard | Jul 1, 2022 Very easy opening process and wonderful staff. Read More |
||||
|
2.50% |
$0 |
- |
Learn More
|
|
|
Rate History: 4.00% → 2.75% → 2.00% → 4.00% → 2.50% |
||||
|
Azoic | Feb 25, 2022 I joined Citi with a Costco-VISA card. An Accelerate followed, and then a checking account. Costco-VISA is necessary for using a credit card at Costco, otherwise cash is necessary. Accelerate Savings w... Read More |
||||
|
2.48% |
$10,000 |
- |
Learn More
|
|
|
Rate History: 3.04% → 2.48% |
||||
|
2.25% |
$500 |
- |
Learn More
|
|
|
Rate History: 0.75% → 2.25% |
||||
|
2.25% |
$500 |
- |
Learn More
|
|
|
2.05% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 4.85% → 4.40% → 4.25% → 3.00% → 2.05% |
||||
|
RYAN S | Nov 28, 2022 While USAA was at one point a great option for all your banking needs, the service has deteriorated so much that I'm currently in the process of changing banks after more than 2 decades. The final straw w... Read More |
||||
|
2.00% |
$1,000 |
- |
Learn More
|
|
|
Mandy | May 8, 2021 Location: 5069 N. Broadway Chicago IL 60640 Read More |
||||
|
1.90% |
$500 |
- |
Learn More
|
|
|
samcasino | Jan 30, 2021 Sterling hasn't offered a 1% rate for over a year. Best one can do now is .20%. The rates shown on this site are grossly outdated. Read More |
||||
|
1.51% |
$500 |
- |
Learn More
|
|
|
Rate History: 1.50% → 1.51% |
||||
|
1.26% |
$1,000 |
- |
Learn More
|
|
|
1.25% |
$0 |
- |
Learn More
|
|
|
Rate History: 1.25% → 2.00% → 1.25% |
||||
|
1.00% |
$500 |
- |
Learn More
|
|
|
0.75% |
$10,000 |
- |
Learn More
|
|
|
Customer 12603 | Nov 26, 2018 This is a terrible bank. The employees are rude and do not care. The auto lender ratio is very high, which could affect their bottom number. Don’t use this bank, there are other stable banks in the area ... Read More |
||||
|
0.70% |
$10,000 |
- |
Learn More
|
|
|
0.70% |
$10,000 |
- |
Learn More
|
|
|
Lori Kroko | Mar 10, 2021 I think that it is absolutely despicable that I have been a customer of the Bank for more than 8 years and I bring in rolled coins with my account number on each wrapper and I am charged 5% fee. Cost me $3... Read More |
||||
|
0.69% |
$500 |
- |
Learn More
|
|
|
Rate History: 0.45% → 0.50% → 0.55% → 0.65% → 0.69% |
||||
|
Zflash4000 | Oct 1, 2017 Will play games with your account. changing posting dates and times. Will hold direct deposit so you overdraft your account. Read More |
||||
|
0.65% |
$10,000 |
- |
Learn More
|
|
|
0.65% |
$10,000 |
- |
Learn More
|
|
|
0.65% |
$100,000 |
- |
Learn More
|
|
|
0.65% |
$10,000 |
- |
Learn More
|
|
|
0.61% |
$500 |
- |
Learn More
|
|
|
0.60% |
$10,000 |
- |
Learn More
|
|
|
0.56% |
$10,000 |
- |
Learn More
|
|
|
Chang | Aug 19, 2021 Best Service! Read More |
||||
|
0.55% |
$1,000 |
- |
Learn More
|
|
|
0.55% |
$100,000 |
- |
Learn More
|
|
|
0.55% |
$10,000 |
- |
Learn More
|
|
|
0.50% |
$1,000 |
- |
Learn More
|
|
|
0.50% |
$10,000 |
- |
Learn More
|
|
|
0.50% |
$10,000 |
- |
Learn More
|
|
|
0.50% |
$100,000 |
- |
Learn More
|
|
|
0.50% |
$10,000 |
- |
Learn More
|
|
|
pessy | May 22, 2023 The Bank Rondout Savings Bank is SCAM and bad company This is horrible bank , the loans insisted that I must come in the office before they will review my application for loan. But Everything is done onli... Read More |
||||
|
0.50% |
$500 |
- |
Learn More
|
|
|
0.50% |
$10,000 |
- |
Learn More
|
|
|
0.50% |
$10,000 |
- |
Learn More
|
|
|
0.50% |
$10,000 |
- |
Learn More
|
|
|
0.50% |
$10,000 |
- |
Learn More
|
|
|
0.50% |
$10,000 |
- |
Learn More
|
|
|
0.50% |
$10,000 |
- |
Learn More
|
|
|
0.45% |
$500 |
- |
Learn More
|
|
|
0.45% |
$10,000 |
- |
Learn More
|
|
|
0.45% |
$10,000 |
- |
Learn More
|
|
|
william bridson | Apr 5, 2024 need to deposit loose change Read More |
||||
|
0.45% |
$1,000 |
- |
Learn More
|
|
|
Rate History: 0.25% → 0.45% |
||||
|
0.45% |
$10,000 |
- |
Learn More
|
|
|
0.40% |
$10,000 |
- |
Learn More
|
|
|
0.40% |
$100,000 |
- |
Learn More
|
|
|
0.40% |
$10,000 |
- |
Learn More
|
|
|
0.40% |
$10,000 |
- |
Learn More
|
|
|
0.40% |
$10,000 |
- |
Learn More
|
|
|
0.40% |
$100,000 |
- |
Learn More
|
|
|
0.38% |
$10,000 |
- |
Learn More
|
|
|
0.35% |
$10,000 |
- |
Learn More
|
|
|
0.35% |
$500 |
- |
Learn More
|
|
|
0.33% |
$1,000 |
- |
Learn More
|
|
|
thedon | Mar 29, 2020 have been waiting 8 weeks - yes 8 weeks for a closing date from this bank ..... they keep giving flimsy excuses requesting insignificant and unnecessary paperwork from us ( the seller ) the buyers who know... Read More |
||||
|
0.30% |
$100,000 |
- |
Learn More
|
|
|
0.30% |
$1,000 |
- |
Learn More
|
|
|
0.30% |
$50,000 |
- |
Learn More
|
|
|
0.30% |
$10,000 |
- |
Learn More
|
|
|
0.30% |
$500 |
- |
Learn More
|
|
|
Delores Thompson, FD Investments - Rochester, NY | Aug 1, 2016 Currently looking for a list of non- performing loans on properties in the Western, New York area. Not sure where to obtain this information from Five Star, but if you would forward this request to the cor... Read More |
||||
|
0.30% |
$10,000 |
- |
Learn More
|
|
|
0.30% |
$10,000 |
- |
Learn More
|
|
|
0.30% |
$10,000 |
- |
Learn More
|
|
|
MoonShadows Farm | Jan 26, 2024 I have been with Wayne Bank for almost 3 years after moving all of my accounts from Hells Fargo. Since then, I have had so many problems with depositing checks with my iPhone. (phone upgraded twice sinc... Read More |
||||
|
0.30% |
$100,000 |
- |
Learn More
|
|
|
0.30% |
$10,000 |
- |
Learn More
|
|
|
0.30% |
$10,000 |
- |
Learn More
|
|
|
sbrown2@frontiernet.net | Jul 7, 2016 I first dealt with Mrs. Bosch at OCTC in 1975. You will not find a bank who will treat you with the respect and truthfulness a customer deserves. Read More |
||||
|
0.30% |
$10,000 |
- |
Learn More
|
|
|
0.29% |
$10,000 |
- |
Learn More
|
|
|
Osvaldo | Apr 27, 2018 Best Rates and service in the area!!! Read More |
||||
|
0.25% |
$10,000 |
- |
Learn More
|
|
|
Robert Wilson | Sep 13, 2018 I was going to open an account, but turned around and walked out when they told me it will take 90 Days to get my Debit Card? Really? 90 Days?? NO THANKS. I went to their Competitor!!! Read More |
||||
|
0.25% |
$500 |
- |
Learn More
|
|
|
0.25% |
$10,000 |
- |
Learn More
|
|
|
0.25% |
$100,000 |
- |
Learn More
|
|
|
0.20% |
$10,000 |
- |
Learn More
|
|
|
0.20% |
$10,000 |
- |
Learn More
|
|
|
jennifer | May 30, 2020 Terrible bank. Very rude to their customers and treat you as if you are unimportant. I started a new job and my direct deposit did not go into effect yet. I deposited my paycheck 3 weeks in a row and on th... Read More |
||||
|
0.20% |
$10,000 |
- |
Learn More
|
|
|
0.20% |
$10,000 |
- |
Learn More
|
|
|
0.20% |
$10,000 |
- |
Learn More
|
|
|
0.20% |
$10,000 |
- |
Learn More
|
|
|
0.20% |
$1,000 |
- |
Learn More
|
|
|
0.20% |
$10,000 |
- |
Learn More
|
|
|
0.20% |
$10,000 |
- |
Learn More
|
|
|
0.20% |
$10,000 |
- |
Learn More
|
|
|
0.15% |
$500 |
- |
Learn More
|
|
|
0.15% |
$10,000 |
- |
Learn More
|
|
|
Run | Jan 12, 2021 They put paychecks on hold for a day so don’t expect your paycheck right away and they don’t answer their phones Read More |
||||
|
0.15% |
$10,000 |
- |
Learn More
|
|
|
0.10% |
$1,000 |
- |
Learn More
|
|
|
D R Lineberger | Dec 30, 2018 Garden14 Read More |
||||
|
0.10% |
$500 |
- |
Learn More
|
|
|
0.10% |
$10,000 |
- |
Learn More
|
|
|
Abraham Farber | May 14, 2015 looking to refinance into a fixed equity 15 yr loan, I have now a 1st Mortg & equity line total of about 218000. looking to get about 360 & pay off the old ones & have extra, I have a 4 unit house were we ... Read More |
||||
|
0.10% |
$500 |
- |
Learn More
|
|
|
0.10% |
$100,000 |
- |
Learn More
|
|
|
0.10% |
$10,000 |
- |
Learn More
|
|
|
0.10% |
$10,000 |
- |
Learn More
|
|
|
Kimber0122 | Jan 12, 2018 I've been with this bank for years; it used to be great, with good customer service that made up the for inconvenience of small-town banking with few locations. However, they recently switched to a new on... Read More |
||||
|
0.10% |
$10,000 |
- |
Learn More
|
|
|
Bauhinia C | Mar 15, 2023 Oh Natty natty natty, haha the fact you need to take out (probably a second) loan for $160,000 on a $625,000 sends up all kinds of red flags. The bank was right to run away from YOU dear hahaha. Read More |
||||
|
0.07% |
$100,000 |
- |
Learn More
|
|
|
0.05% |
$2,500 |
- |
Learn More
|
|
|
Seeko | Mar 28, 2023 On line banking gives a confirmation number when paying bills. But it doesn’t confirm that the bill will be paid only that they have the information. Ridiculous. Read More |
||||
|
0.05% |
$10,000 |
- |
Learn More
|
|
|
0.05% |
$1,000 |
- |
Learn More
|
|
|
0.05% |
$100,000 |
- |
Learn More
|
|
|
Kimber0122 | Jan 12, 2018 I've been with this bank for years; it used to be great, with good customer service that made up the for inconvenience of small-town banking with few locations. However, they recently switched to a new on... Read More |
||||
|
0.05% |
$500 |
- |
Learn More
|
|
|
Ugg | Jun 12, 2023 US Bank reported me to dult Protective Services because my husband is 85 and I am63. He got sick and went into a nursing hime for 3 months. My husband always handled the financial affairs. I had to take ov... Read More |
||||
|
0.03% |
$25,000 |
- |
Learn More
|
|
|
GAM | May 18, 2019 Had checking and savings for years when living in Philly. Went into PNC 2.35 APY high yield savings. They have thus far maintained rate. Easy web site and great customer phone service. Still maintain check... Read More |
||||
BestCashCow strives to maintain the most accurate rates. If you believe a rate is not accurate, please let us know.
A certificate of deposit (CD) is a savings product offered by a bank in which a depositor (someone who has money to put into the bank) agrees to commit a certain amount of money for a set period of time, in return for a fixed rate of interest. While it is possible to withdraw the money earlier (breaking the CD) doing so comes with high interest penalties and is generally not advised.
The time period in which money is held in a certificate of deposit is called the term. Terms can run for any period of time but in general, banks use the following terms: 3 months, 6 months, 12 months, 18 months, 24 months, 36 months, 48 months, and 60 months. Terms can either be described in months or years. The term that is right for each individual depends on their goals, the rate they which to earn, and their future plans for the money. In general, if rates are going up, savers should avoid putting the money into a long-term CD. If rates are going down, then the opposite is true, and savers should try and lock into a good rate for an extended period of time. In stable rate environments, CDs that are over 12 months in length can enable depositors to pick up a slight premium over savings accounts.
Almost all banks provide CDs to their consumers and they have been a mainstay of savers and retirement accounts for years. If FDIC insured, the CD represents a safe place to put money that will generate a predictable return.
Inflation is the main risk of a CD. Inflation can often run higher than the inflation adjusted return on a CD, thus eroding the value of the money stored in the CD over time. This is especially true for longer-term CDs opened in low interest rate environments.
The method of distributing the interest earned on a CD varies by bank. Some banks pay interest monthly, other semi-annually, and others at the maturity of the CD. One advantage of a branch-based bank is that a depositor can walk into the bank and receive their interest that day in the form of a check. Online banks tend to use electronic funds transfer or check via mail.
Since the financial crisis in 2008, CDs have become less popular because the yields they offer have dropped precipitously, making it difficult for retirees and savers to generate sufficient income. But investors looking for a place to stash some cash might still find CDs an attractive place for some of their savings. Online banks generally offer better rates on six month CDs but the accounts must be opened online. View online bank rates.
When interest rates are falling, it is often preferable to lock in high rates for an extended period of time with a longer-term CD. When interest rates are rising, depositors should avoid committing their money for long periods of time. To see interest rate trends, visit the BestCashCow rate analysis page.
All banks listed on BestCashCow are FDIC insured; BestCashCow.com strongly recommends that you stay within FDIC insurance limits and that if you are unsure of how the limits affect you, please visit the FDIC website.
To understand all of the income generating options available to a saver, please view the Income Generating Investments Comparison Chart.
Find out how much extra money you can earn by moving your bank money into an account that pays more.
Use or Change these Amounts And Rates