Looking to make your money grow? You can put your money in the bank through a certificate of deposit. A certificate of deposit or CD is the best way to go if your main goal is to make your money grow for a future need. With this type of bank deposit, you can withdraw your funds anytime you want as the need arises. But, you have to bear in mind that banks do charge a penalty for early withdrawal. Unlike savings accounts, a certificate of deposit charges a penalty for early withdrawal simply because you are supposed to let your money stay with the bank until it matures or when the term of your certificate of deposit expires.
For June 2012, there are few financial institutions nationwide offering the best CD rates for 1 year or 12 months term. The best places to put your money for a 1 year CD are the following:
1. NavyArmy Federal Credit Union – 1.35%APY. The credit union requires $1,000 minimum deposit. This credit union also offers a 3 month term share account CD at 1.00%APY with the same minimum deposit requirement.
2. El Paso Area Teachers Federal Credit Union – 1.21%APY. Requires $500 minimum to open.
3. San Antonio Federal Credit Union – 1.06%APY. $1,000 minimum is required to open.
4. Greater El Paso Credit Union – 1.05%APY. Only $50 is required to open.
5. Colorado Federal Savings Bank – 1.05%APY. This savings bank requires a higher minimum deposit requirement of $5,000.
6. Ally Bank – 1.03%APY for a high yield CD with no minimum deposit required.
7. Ascencia – 1.00%APY. $500 minimum is required.
You can see from the above that the best CD rates are offered by credit unions and not by banks. That only goes to say that if you are a member of the above credit unions it is best to have your money stay there rather than with a bank. Membership of a credit union has its own advantages. Members get more from their money instead of depositing it with a bank. If you are not a credit union member yet maybe it is time to take that into consideration.
Compare the above with the best 12 month CD rates for May 2012.