A 12 month CD is the most sought after CD term. This is true for those who are into CD laddering. With the 12 month or 1 year CD, you can gauge how you are doing with your CD investment. But, while it is easy to say you want to invest your money through CD laddering, it comes with a hard decision on where to put your money where it is safe while earning a good return of interest. In other words, one thing to look into when investing ones hard earned money is not only where to find a bank that is offering the best CD rate but also the financial strength and stability of the bank.
A bank that offers the best 12 month CD rate is rare to find as CD rates continue to drop. Below are a few of the banks that are all FDIC insured offering high yield 1 year CD rate as of July 7, 2012:
1. Doral Bank – 1.15%APY. It requires at least $1,000 minimum deposit. However, Doral Bank has a 1 star rating only at bankrate.com’s Safe & Sound Star Rating. A 1 star rating means it is a bank with lowest rating. The bank has managed to keep its rate at 1.15%APY since April 2012.
2. CIT Bank – 1.10%APY. The bank requires a high minimum deposit requirement of $25,000. It has a 4 star rating at bankrate.com’s Safe & Sound Rating System. A 4 star rating means the bank is financially sound. In other words, its financial stability and strength is sound by industry standard. For comparison, the bank’s 12 month CD rate offer in April 2012 was 1.15%APY, a drop of 0.05%APY.
3. Metlife and Colorado Federal Savings Bank – 1.05%APY. Metlife requires $25,000 minimum deposit to open while Colorado Federal Savings Bank requires only the amount of $5,000. Metlife has a 2 star rating while Colorado Federal Savings Bank has a 3 star rating. A 2 star rating means it is below peer group while a 3 star rating means it is performing.
4. EH National Bank – 1.03%APY. The bank requires $10,000 as minimum deposit. It is also has a 2 star rating which means it is below peer group. Interests are compounded monthly.
5. Ally Bank – 1.02%APY. Ally Bank, an internet bank, is offering a zero minimum deposit and interest is compounded daily. It has a 5 star rating. A 5 star rating is one which has a superior standing in the financial industry. Worth considering is the drop of 0.02%APY in its rate offering compared to what it offered in May 2012.