CD Rate Round Up - Updated: August 2009

That time has come.  What time is that?  Well, time for a High Deposit Rate Round-up.  I hope you know the time involved in putting this together.  But, we like y’all, so here ya go.  I’m sorry for not linking to the banks, but TOSs provided by the various sites limit the links. 

For our first rate find, I have Discover Bank for 1-yr at 1.98%.  They were established in 1911 and became FDIC backed in 1934.  Discover Bank is based in Delaware.  With $37.5 billion in assets, the bank is huge, yet not a MegaBank.  Certainly during a recession, it is tough to be a credit card bank.  They have a first quarter loss of $69.3 Million.  They are considered well capitalized though. Their FDIC number is 5649.  They have obtained a 3-star rating.  As you’ll see below, they have some competition.  Maybe they will take note of my round-up and bump their yields.

Next, if you are looking for something short-term, DanversBank maybe a good place to look.  A little thought provoking fact here.  They were started in 1850, but didn’t become FDIC insured until 1985.  Numerous people had a lot of faith in this bank.  They have a 4-month special at 2.00%.  I’m guessing they have a short-term deposit problem.  Typically banks offering high short-term CD rates are trying to lure you inside.  After the initial period, the renewal rates are bound to be low.  So keep an eye in the mail and be ready to move on.  DanversBank’s FDIC number is 90185.  They have about $1.7BB in assets, had a 1st quarter profit, they are considered well capitalized, and earned a 3-star rating.

Wilshire State Bank (FDIC 23301) is based in CA. With one of the top deposit rates of 1.96% , Wilshire State Bank was established in 1980.  They also have one of the greatest CD Rates for 1-year at 2.15% APY.  They have an excellent 4-star rating.

I found a pretty good 2y certificate of Deposit rate with Citizens First Savings Bank, Port Huron, Michigan (FDIC 30005).  For Michigan CD Rates this is an especially high CD at 2.50%.  But, the bank is in bad shape.  Even more depressing, they have been insured since 1938.  They have low capital ratios, are not well capitalized, and have a 1-star rating.

Top 2Y rates with low quality banks must be very popular.  Frontier Bank, WA (FDIC  22710), also has a 2-yr rate at 2.50%.  This certificate of deposit also has a 1-times bump option.  Fontier is well capitalized but losses have earned them a 1-star.

Bank quality is still a problem for the next two banks, also.  We complete our round-up with Acacia Federal Savings Bank (FDIC 32266) and Northpointe Bank (FDIC 34953).  Acacia has a 5-year at 3.60% APY with a 2-star rating and Northpointe has a 3Y at 3.00%, but only 1-stars. 

You won’t lose a dime, just some time, as long as you stay under the FDIC insurance limits ($250,000 through 12/31/13).  And the FDIC has been very quick about returning CD proceeds.  Keep in mind, most bank closures this year have not been complete shut-downs.  The FDIC has arranged for acquisitions by other more sound banks.  Please watch the terms on your CD though.  I wouldn’t invest above $100,000 for CDs that will mature beyond 12/31/13.

For other yields by state stop by CD Rates Texas.  For just some plain ‘ol fashioned rate busting, stop by online CD Rates.