A 12 month CD (certificate of deposit) is the best way to go if you are planning of keeping your extra money in a safe investment. With the Federal Reserve setting interest rate low, there is no reason to lock in your money for a longer period of time. A 12 month CD is an ideal option for folks who do not want to get stuck to a long term CD at a very same low interest rate.
For short-term CD investors, there are banks offering competitive CD rates for 12 month term CD.
1. Bank of Internet USA – A 12 month CD with a minimum opening deposit of $1,000 is at 1.10%APY.
2. CIT Bank 12 Month Term CD – 1.06%APY. Also requires at least $1,000 minimum opening deposit.
3. Colorado Federal Savings Bank offers a 12 month CD at 1.05%APY which requires a minimum of $5,000 opening balance. Metlife Bank also offers a 1 year CD at 1.05%APY but the minimum opening deposit requirement is quite high at $25,000.
4. Ally Bank High Yield CD is at 1.04%APY with no minimum opening deposit required for a 12 month term CD.
5. Nova Bank, Discover, giantbank.com, California First National Bank (CalFirst), and Goldwater Bank offers the same 12 month CD at 1.00%APY. Each bank differs on the minimum opening deposit requirement. Nova Bank requires $500 only. Discover and giantbank.com requires $2,500. And, CalFirst and GB requires $5,000.
The above are the banks that offer a 12 month CD rate at above 1.00%APY as of November 3, 2012. These 12 month CD rates may change by the respective banks without further notice so it is advisable to inquire or ask a bank representative for the latest 12 month CD rate or visit a branch of your choice.
You can compare the above 12 month CD rates with what was offered back in August 2012.