1 Month cd
A one month cd account is the hardest term to find. It is a very short time period that your funds are on deposit and so many banks do not offer a one month cd. The rates for one month cds are usually pretty low but there are some 1 month cd accounts that offer a good enough rate to make it worth it to open an account.
3 Month cd
Many banks offer a three month cd account as the shortest term certificate of deposit available. The rate of return is usually not very high but you also will have access to your deposited funds in relatively short period of time. Currently the highest rate offered for a 3 month cd is the 1.35% offered by iGOBank which requires a minimum deposit of $1,000.
6 Month cd
Almost all banking institutions offer cd accounts with a six month term. The rates of return are usually better than those offered for the three month cd account, but remember that rates vary greatly between banks. The highest rate currently offered is 1.25% by New Dominion Direct. Be aware that New Dominion Direct requires a minimum $3,000 initial deposit.
12 Month cd
If you choose a 12 month cd account be sure that you will not need access to your funds for the full year in order to avoid any early withdrawal penalties. The highest 12 month cd rate is 1.55% offered by Sallie Mae Bank. This may be a bit of a shock to those of you who are unaware that Sallie Mae has branched into offering savings accounts and cd accounts as well as educational loans.
18 Month cd
Opening an 18 month cd account is a smart idea for those who are not sure they could feasibly leave their funds deposited for a full two years. They are a little harder to find than a 12 month or a 24 month cd; however, if this is the term that works best with your financial plans, you can find several banks that offer them.
24 Month cd
A 24 month cd is pretty standard but if you are having a hard time finding information for 24 month cd accounts, try also searching for information on 2 year cd accounts. The best rate currently offered for a 24 month cd is 2.00% offered by New Dominion Direct. New Dominion does require a $3,000 initial deposit and if that is more than you want to commit there are other banks which offer a slightly lower rate of return with no minimum required.
Year CD Accounts
1 Year cd
The highest APY rate offered for a one year certificate of deposit is 1.55% by Sallie Mae Bank. Yes, Sallie Mae in now an online bank as well as a source of educational loans.
2 Year cd
A two year cd is a good mid range choice. The term is not overly long and it offers a good rate of return. The best rate for a 2 year cd is offered by New Dominion Direct at 2.00%. If the $3,000 initial deposit is a problem there are other banks that offer only slightly less with an initial deposit of $1,000 or less.
3 Year cd
2.4% is the best APY rate offered for a cd with a 3 year term. As you can see there is a large increase in rate for being willing to allow the bank to use your money for three years instead of only 2 years.
5 Year cd
A five year cd definitely requires thought and planning. You are agreeing to a fairly long time period. With the time period being longer you want to be extra carefull about getting the best account to fit your needs. The typical rate for a 5 year cd falls between 1.52% and 3.05% so do your homework! Make sure you get a great rate with low fees and a bank you enjoy working with.
7 Year cd
The fixed rate you earn on a seven year cd needs to be high enough to allow you to keep pace with inflation. This is a longer term that can help provide security for future expenses and needs.
10 Year cd
If you are going to allow a bank to use your money for 10 years make sure you have picked one of the best. Even with FDIC insurance you want a bank that is going to be around a long time and one you are comfortable working with.
Be sure you consider your short and long term goals when you are selecting the best length for your cd account. There are banks that do offer cd accounts with terms that do not conform to these standard time frames. Remember that APY rate is not the only consideration when selecting the best cd account.