Best 12 Month CD Rates for August 2012

Update August 12, 2012:

In addition to the below best 12 month CD rates for August 2012, here are banks that changes their CD rate offerings above the 1.00%APY bracket:

1. Bank of Internet USA – 1.10%APY. The online bank requires $1,000 minimum opening balance. In 12 months, interest income is estimated to be $55.

2. Ally Bank High Yield CD – 1.04%APY. There is no minimum opening balance for this 12 month High Yield CD.


It’s the 8th month of the year 2012 and some people are still struggling to find jobs. Even if  the latest job report goes on an upward trend, it is still not best to sit back and relax. If you are one of the fortunate people who have a job and is earning good money, start making your money work for you to have a cushion when things get bad.

Investing a good chuck of your income every 3 months on a certificate of deposit is a good way to start. Do this every 3 months or 4 times a year and you will realize it is the best thing you can do for your hard-earned money. Seeing your money grow will make you feel good about yourself and thus of your future.

If you are interested in a CD investment, here are the best 12 month CD rates for August 2012:

1. CIT Bank. CIT Bank and Doral Bank looks like the only banks offering the highest 12 month CD rate at 1.10%APY. The only drawback with CIT Bank is its required opening balance, which is $25,000. Doral Bank thus offer 1.10%APY on the same 12 month CD term but it only has a 1 star rating. CIT bank is rated superior by bankrate’s Safe and Sound rating. Worth observing is how Doral Bank’s rate dropped by 0.5% since it offers 1.15%APY in June 2012 and July 2012.

2. ConneXus Credit Union. This credit union offers 1.10%APY on a 12 month share certificate. Check if you qualify since credit unions are known to operate for the benefit of credit union members only. ConneXus requires at least $10,000 opening deposit to earn the APY.

3. MidFirst Direct offers a high yield online CD at 1.05%APY. The same 1.05%APY is being offered by Metlife and Colorado Federal Savings Bank. There is however a difference in the opening balance as Metlife requires $25,000 and Colorado Federal Savings requires $5,000. It is MidFirst Direct that offers a manageable opening deposit requirement. This is true for those who are just starting out with CD investments. MidFirst Direct requires $1,000 only.

4. EH National Bank offers a 12 month CD at 1.03%APY. $10,000 is the minimum deposit required. The bank is rated below peer group by bankrate’s Safe and Sound Rating.

5. Ally Bank’s 12 month CD rate is at 1.02%APY. Compared to the above 12 month CD rate offers, Ally’s offer looks like a low APY offer. However, Ally does not require any amount to open the 12 month CD account and is rated superior by bankrate’s Safe and Sound Rating system.

Whatever bank you choose, the main point is you are making your money work for you so you don’t have to worry as to where to get funds in case of an emergency or any future need.


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