A 12 month or 1 year CD is still the best option for one with limited resources. You will only have 1 year of waiting until the next move of whether or not to to invest in a short term or long term CD. And, when money is tight you can also make easy withdrawals. However, when you withdraw your funds early, banks normally charges a fee.
For May 2012, 12 month CD rates are not quite that attractive for one to be convinced to invest in a 12 month CD, but there are a few banks that offer the best 12 month CD rate, namely:
1. Doral Bank’s 12 month CD rate for May 2012 remains the same at 1.15% APY. This was the bank’s 12 month CD rate in April. The bank requires a minimum deposit of $1,000. It has a 1 star rating from bankrate.com’s Safe & Sound Rating.
2. Key Source Commercial Bank – 1.15%APY. The minimum deposit requirement is $5,000.
3. CIT Bank – 1.08%APY. The bank’s minimum deposit requirement is quite high, which is $25,000. However, it has a sound rating (4 star rating) from bankrate.com’s Safe and Sound Rating.
4. AloStar Bank of Commerce, which previously offered a 1 year CD at 1.25%APY is now only offering 1.06%APY. The minimum deposit required remains at $1,000.
5. Metlife Bank and EH National Bank – 1.05%APY. Both banks have 2 star ratings from bankrate.com’s Safe and Sound Rating. Metlife Bank requires a minimum deposit of $25,000 while EH National Bank requires $10,000. This is quite high a minimum deposit for someone who is just starting out and have limited resources. Colorado Federal Savings Bank also offers a 12 month CD at 1.05%APY and requires $5,000 minimum to open.
6. Ally Bank – 1.04%APY with zero minim deposit.
7. Ascensia, a division of PBI Bank, and Alliant Credit Union offer a 12 month CD rate at 1.00%APY. The bank requires $500 minimum deposit only.
The list is narrowed down to the top 7 of banks offering a 12 month or 1 year CD of 1.00%APY and above. Please note that the above CD rate changes often at the discretion of the bank. It is advised to check with the bank directly to get the latest and up to date information.