Good 1-year Certifcate interest rates
Today I bring a new post with the highest 1-year CD rates that I can find.
The FDIC has shutdown thirty-eight banks thus far in 2010. They are on pace to shutter even more this year than last 2009. Three hundered to six hundred of banks are in a very weak state and most of those will not be able to survive. Still looming residential losses plus impending commercial losses will just be too much.
When considering 1-year CD yields you want your bank to be around. So check the health of the bank.
Nevertheless here are some jumbo CD yields I found.
It looks ilke credit unions are leading the pack.
Alliant Credit Union has a 2.10% APY for a one year Certificate. The rate is good from 1-year to 23-months. Interest is paid at maturity only. 5-star Rating.
Melrose Credit Union from New York has a 2.07% yield.
Amazingly, I found a bank with a 2.00%. Most banks are in the 1.50% range because of the FDIC National rate cap. Check out First City Bank. 2.00% APY. They can be reached at 888-244-5151. Of course there are a couple of caveats. It is a 15-month CD which is what gets them around the FDIC cap. They have a 0-Star rating. And to make it worse, they are located in Florida. But they are FDIC insured.
AIG Savings Bank has a 1.52%. Although many people may not want to give their money to them. 2-star rating.
Use the FDIC or NCUA website to do your own safety check. Take a look at the various ratios. Look for a E/A ratio above 7%, a total risk based capital above 10% (only applicable to banks), and if the institution has a loss, make sure it is only about 25% of the capital when you adjust for yearly earnings. These are just suggestions. The web also offers some free rating tools. One is found at bankrate[dot]com.
