Best CD Rates Available – December 2017

CD rates are moving higher these days and 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.

Best CD Rates AvailableThis 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:

CD Rates - Updated December 2017

1 Year CD: Ally Bank - 2.00% APY

Minimum Deposit $0

Ally Bank  is offering a 1 year CD rate at 1.98 percent with a yield of 2.00 percent. There is no minimum deposit for this CD Account. Ally Bank has the best yielding 1 year CD account available right now. Learn Moore.

First Internet Bank - 3 to 60 Month CD

Minimum Deposit of $1,000

A 3 month CD yield at 1.11% 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: Learn Moore.

  • 3 Month 1.11% APY
  • 6 Month 1.43% APY
  • 12 Month 1.76% APY
  • 18 Month 1.81% APY
  • 24 Month 1.92% APY
  • 36 Month 2.07% APY
  • 48 Month 2.20% APY
  • 60 Month 2.43% APY

 1 Year CD at Popular Direct 1.60%

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. 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. Learn Moore.

1 Year CD from Connexus Credit Union at 1.00% APY

Minimum Deposit $5,000

The 1 year CD rate at Connexus Credit Union is currently at 1.00 percent with an APY of 1.00 percent. Deposits at credit unions are insured by the National Credit Union Administration for up to $250,000.

Sallie Mae 1 year CD at 1.72% APY

Minimum Deposit is $2,500

The banking division of the student loan company Sallie Mae is offering 1 year CD at 1.71 percent with a yield of 1.72 percent. Sallie Mae partially funds loans to students by collecting deposits from their online bank. Learn Moore.

18 Month CD - 1.70% APY Popular Direct

Minimum Deposit $10,000

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. 2 Year CD - 2.10% APY

Minimum Deposit $1,000

Last month I mentioned it was nice to see 2 year CD rates at 2.00 percent, now we one bank offering 1 year CD rates at 2.00 percent. Just a few years ago, the best 5 year CD rates were at 2.00 percent. tops our 2 year rate list with a yield of 2.10 percent.

Popular Direct 3 Year CD - 2.15% APY

Minimum Deposit $10,000

Popular Direct has the best 3 year CD rate on our list. The bank is offering 3 year CD rates at 3.12 percent and the yields at 2.15 percent. The minimum depot for a 3 year CD account is also $10,000.

4 Year CD - 2.15% APY - M.Y. Safra Bank, FSB and Northern Bank Direct

Minimum Deposit $5,000 - M.Y. Safra Bank

Minimum Deposit $500 - Northern Bank Direct 

M.Y. Safra Bank, FSB and Northern Bank Direct are both offering 4 year CD rates at 2.15% APY. M.Y. Safra Bank's minimum opening deposit is $5,000 while Northern Bank Direct minimum is $500. 

Capital One 5 Year CD - 2.45% APY

Minimum Deposit $0

Capital One has the best 5 year CD rate right now at 2.42 percent with an APY of 2.45 percent. There is no minimum deposit to open a CD account at Capital One. Learn Moore.

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?

In addition, funding a CD account at opening is also easy because most Internet banks these days allow electronic transfers into the account. Setting up these transfers is therefore quick and painless. 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