Certificate of deposits or time deposits are the most common financial products offered to consumers in the United States by banks, thrifts and credit unions. It is offered at various terms of from 3 months to 10 years. The longer you let your money stay in the bank, the higher the return on your investment.
But, the most highly sought after CD term is the short term 3 month CDs. 3 month CDs are the most sought after CD term in as much as money can easily be accessed at a short period of time.
As of July 21, 2012, the best rates offered for 3 month CDs are:
1. 0.75%APY for 3 month CDs offered by Lockheed Federal Credit Union. The credit union requires a minimum deposit of $1,000 for this account. Interest is compounded monthly and CD renewal is automatic.
2. 0.66%APY offered by EverBank on a 3 month CD with $1,500 as minimum deposit.
3. E-Loan comes next with an offering of 0.65%APY on a 3 month CD, however, it requires $10,000 minimum deposit. Not that bad though for those who have the money to invest as the return will also be higher. It is a fact that the higher the investment, the higher the return.
4. 0.60%APY for 3 month CDs offered by Goldwater Bank. However, the bank requires a higher minimum opening deposit of $5,000, which may be too high of a requirement for those investors just starting out.
5. 0.55%APY for 3 month CDs offered by Affinity Federal Credit Union. This credit union relaxes its opening deposit as it only requires $500.
If you think you cannot get the much desired return on your investment for such a short term 3 month CD, you may want to go for a one (1) year CD which can offer a much higher return as the longer the CD term is the higher the return on your money. There are only few banks that offer the best 1 year CD for July 2012.