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Best CD Rates Available - July 2017

Best CD Rates Available – July 2017

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You can get a better yielding certificate of deposit from an online bank. Internet banks offer much better CD rates than traditional brick and mortar banks. This is especially true these days because online banks are increasing CD rates while big traditional banks keep CD rates at low pathetic levels. For example, a 1 year CD rate at BankDirect is now at 1.60 percent. Chase Bank 12 month CD rates are currently at 0.02 percent. By the way, I had to dig through Chase's website to find the current 12 month CD rate. Chase's rate is so low they are probably embarrassed which is probably why the rate is buried.

This list of CD rates below is updated daily. Interest rates will move higher in 2017 and in 2018. Many banks in this report will continue to increase their rates in the months ahead to stay competitive with the best rates available.  Listed below are CD accounts with the current best CD rates:

1 Year CD: BankDirect - 1.60% APY, Minimum Deposit $10,000

BankDirect is offering a 1 year CD rate at 1.59 percent with a yield of 1.60 percent. With a minimum deposit of $10,000. This is the best yielding 1 year CD account available right now. BankDirect is a division of Texas Capital Bank which was ranked one of Forbes' Best Banks in 2016.

3 to 60 Month CD - First IB - Minimum Deposit of $1,000

A 3 month CD yield at 1.21% which is better than many 12 month CD rates available these days. As the name would suggest, First Internet Bank of Indiana is based in Indiana. Founded in 1999, First IB is one of first banks to be exclusively online, there are no branch locations. First IB serves all 50 states. The rest of First IB's rates are better than most rates available we decided to list all their rates:

  • 3 Month 1.21% APY
  • 6 Month 1.37% APY
  • 12 Month 1.52% APY
  • 18 Month 1.66% APY
  • 24 Month 1.81% APY
  • 36 Month 1.94% APY
  • 48 Month 2.07% APY
  • 60 Month 2.30% APY

 1 Year CD at Popular Direct 1.55% - Minimum Deposit $10,000

Many traditional brick and mortar banks have online banking divisions. Popular Direct is the online bank of Banco Popular North America, a New York state chartered bank. All deposits with BPNA (including deposits through Popular Direct deposit products) are insured by the FDIC up to the applicable maximum amount allowed by law for each deposit ownership category. All balances for Popular Direct and BPNA deposits would be combined for purposes of determining FDIC coverage eligibility. This last point is important, since Popular Direct's deposits are insured under the BPNA FDIC umbrella be sure to stay under the maximum amount so your deposits are fully insured.

1 Year CD from Connexus Credit Union at 1.50% APY - Best Yielding CD from a Credit Union Right Now

The 1 year CD rate at Connexus Credit Union is currently at 1.49 percent with an APY of 1.50 percent. The minimum opening deposit is $5,000. Deposits are insured by the government but not with the FDIC. Deposits at credit unions are insured by the National Credit Union Administration for up to $250,000.

Sallie Mae 1 year CD at 1.50% APY - Minimum Deposit is $2,500

The banking division of the student loan company Sallie Mae is offering 1 year CD at 1.49 percent with a yield of 1.50 percent. The minimum deposit at this bank is $2,500 and all deposits are FDIC insured. Sallie Mae partially funds loans to students by collecting deposits from their online bank.

18 Month CD - 1.70% APY Popular Direct

The Internet Bank Popular Direct also tops our 18 month certificate of deposit rate list. Interest compounds daily on this 18 month CD and all CDs at Popular Direct. Interest that is calculated daily give the CD account a higher overall APY.

2 Year CD - 1.81% APY - EverBank and First IB

I have to admit, it's nice to see 2 year CD rates nearing 2.00 percent. Just a few years ago, the best 5 year CD rates were at 2.00 percent. Both EverBank and First IB top our 2 year rate list with a yield of 1.81 percent. Everbank's minimum deposit is $5,000. First IB's minimum opening deposit is only $1,000.

3 Year CD - 2.00% APY - Connexus Credit Union and EverBank Offer the Best Rate

Both Connexus Credit Union and EverBank make the rate list again toping the 3 year CD rate list. The bank and credit union are offering 3 year CD yields at 2.00 percent. The minimum opening deposit at both financial institutions is $5,000.

4 Year CD - 2.15% APY - Northern Bank Direct and EverBank

Northern Bank Direct and EverBank are both offering 4 year CD rates at 2.15% APY. Northern Bank Direct's minimum opening deposit is only $500 while EverBank's minimum is $5,000. Northern Bank Direct is another example of an online banking division of a traditional brick and mortar bank, in this case part of Northern Direct.

5 Year CD - 2.35% APY - Synchrony Bank and Popular Direct

Synchrony Bank and Popular Direct 5 year CD rates at 2.35% APY. The minimum opening deposit at Synchrony Bank is $25,000 and the minimum at Popular Direct is $5,000. Synchrony Bank used to be part of General Electric but was spun off by GE. Synchrony Bank is publicly traded and provides financial backing for many department store credit cards.

Opening a CD Account Online

Online banking has come a long way the past 20 years. Opening a certificate of deposit online is very quick, easy and secure. These days it is much more of a hassle to go to a traditional bank to open a CD account. Also why would you when you get better rates with online banks?

Funding a CD account at opening is also easy, most Internet banks these days allow electronic transfers into the account. Setting up these transfers is also quick and painless. When you add an external account you usually have to verify the account, this is done by two small transfers into the account. Online banks also give you a certain amount of time to fund the CD account after you opening it.

Author: Brian McKay
July 13th, 2017