Best CD Rates (Certificate of Deposit Rates), February 2010

By Pinyo, on January 5, 2010

The following is a list of the nationally available highest yields 12-month CD rates. In general, certificates of deposit (CDs) are great investments because your principal is protected by FDIC insurance and your interest rates are guaranteed. Moreover, you can use CD Ladder to make your CD savings more flexible and effective. You can open certificates of deposit at your local bank, but with a little more effort you can secure the best rates through online banks.

As of 2/9/2010, the highest yield CDs are:

Bank	Rate (APY)	Min Deposit	Details
Discover Bank CD	1.75%	$2,500	Choose terms from 3 months (0.75% APY) to 10 years (3.70% APY).
Ally Bank High-Yield CDs	1.64%	$0	Open with $0, No monthly fees, Daily compounded interest for maximum earnings, Automatic renewal at maturity, Ability to withdraw and receive earned interest as income — just let us know before the CD maturity date or by ten days after. Ten-Day Best Rate Guarantee to new and renewing CDs.
EverBank Yield Pledge Certificates of Deposit	1.62%	$1,500	Choose terms from 3 months (0.75% APY) to 5 years (3.37% APY), Low minimum of $1,500 to open your CD
Citibank CDs	0.95%	$500

Bank Rates Search Tool

Additionally, you can use the following tool from MoneyRates.com to find the right banking product for your need.

If you are looking for different length CD and more banks, I recommend that you try MoneyAisle to help you find the best CD rates for your desired term.

Alternative Savings And Investment Options

In addition to high yield savings accounts, there are other alternatives that may work for you.

Lending Club (average 9.65% APY*)

Lending Club is a social lending network where you can invest in individual loans with as little as $25. The specific interest rate depends on the quality of loan you are investing in. Currently, the average return on investment is 9.65% APY. To learn more about peer lending, please read Introduction to Peer-to-Peer Lending.

* IMPORTANT: Please note that there are special risks associated with social lending.

Please review information associated with each offer before you sign up. Rates and conditions change constantly and I have reported what I believe to be the most accurate information at the time the article was updated.

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Pinyo is the brain behind Moolanomy personal finance blog and a few other web sites. If you like this article, please subscribe for free daily email updates.

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4 Comments

Blogging Banks
May 7, 2009, 16:40

I just opened a one year CD with GMAC Bank for their high APY. the only thing I don’t like there is that YOU have to call them when your CD matures in order to get your money back. Otherwise they would roll it into a new CD.

As for Lending Club, they are not FDIC insured and a little riskier than CDs
Pinyo
May 8, 2009, 14:30

@Blogging Banks – In addition to FDIC insurance, Lending Club has default risk which could cause you to lose money. But like other investments, risk management to realize higher yield is possible. The average 9.05% yield is risk adjusted.
Mike Pastore
July 6, 2009, 18:05

I think opening a CD even with a small amount is okay as long as the bank you transact with is legitimate. A small amount when saved and added up will always become big savings if handled by a trustworthy individual/company.
Mark Morris
December 3, 2009, 11:50

If you want to find out information on a bank offering USD CDs paying 25% p.a. look at my blog post. Also they have USD deposits paying 16% annual interest a year.

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