A 1 year certificate of deposit or CD is the best CD term. The waiting time is not too short and not too long to earn a good return on your investment. Although CD rates are a bit low at this time, there is still some good CD rates out there that are available both online and offline.
Below are a few of the best 1 year CD rates for February 2013:
1. GE Capital Retail Bank – 1.05%APY. The minimum deposit required is $25,000.
2. E-LOAN – 1.02%APY. The minimum deposit is $10,000.
3. California First National Bank – 1.00%APY. Requires $5,000 minimum deposit.
4. Home Savings Bank – 1.00%APY. Only $1,000 minimum deposit is required.
5. The National Republic Bank of Chicago – 1.00%APY. Also, only $1,000 minimum deposit is required.
The above are the top 5 banks offering certificate of deposit rate that are above 1.00%APY. CD investment is a good way of saving money and at the same time earning a higher return compared to an ordinary savings account. For some people, the best way to save and earn interest is to go for CD laddering wherein you invest a certain amount of money on a certificate of deposit with different CD terms.
If you are interested in opening an IRA instead of a CD, you can compare the above CD rates with the best IRA CD rates. Remember that with an IRA investment, your money is tied to the bank until you reach a retirement age whereas a CD investment is tied only to the term of your investment.