With the lowest interest rates in a generation, it can be difficult to find the best deal for online banking CDs. Here are some suggestions for high interest yielding online banking CDs:
6 Month CD
Ally Bank. 1.09% APY. $0 fees. No minimum deposit.
Ally bank currently offers a 6 month certificate of deposit that offers 1.09% APY. As with nearly all online bank CDs, you will not be allowed to cash out your CD until the full 6 month term has ended. Ally includes a 10 day rate option on their online CDs which allows depositors to receive the higher interest rate if interest rates on the CD increase within 10 days. While useful, it is doubtful that this feature will change your decision regarding the best deal for an online banking CD.
12 month CD
Aurora Bank. 1.30% APY. $0 fees. $1000 minimum deposit.
Aurora bank currently offers a 12 month certificate of deposit that pays 1.30% APY. You will not be able to cash out your CD until the full 12 month term has ended. Aurora is a smaller institution, but the online CD from Aurora offers a full FDIC insurance guarantee.
12 month jumbo CD
Ally Bank. 1.32% APY. $0 fees. $100,000 minimum deposit.
If you have $100,000 or more to deposit in a CD, you can receive slightly higher rates on your deposit. The spread between the normal CD and jumbo CD is minuscule in 2010 with a 0.02% APY difference. This spread translates to 2 cents per $100 for the year.
24 month CD
Ally Bank. 1.57% APY. $0 fees. $0 minimum deposit.
Ally Bank offers a 24 month certificate of deposit that pays 1.57% APY. As with nearly all online bank CDs, you will not be allowed to cash out your CD until the full 24 month term has ended. Ally includes a 10 day rate option on their online CDs which allows depositors to receive the higher interest rate if interest rates on the CD increase within 10 days. While useful, it is doubtful that this feature will change your decision regarding the best deal for an online banking CD.
With online banking CDs, make sure you understand the term of the certificate. It is very costly to cash out a CD prior to the expiration of the term. You will receive a higher interest rate for longer term CDs and you will receive a slightly higher interest rate for depositing large amounts of money.