Best CD Rates Last Week of October 2012

There is talk going around that the Fed Charmin, Ben Bernanke, won't seek a third term whether or not Obama is reelected. With Ben out as Chairman who Romney selects if he is elected and who Obama will select if he is elected might possibly deside if interest rates will stay low until mid-2015 which is the current Fed policy. The Fed Chairman's term is not up until January 2014 so we have some time. Ben has been the driving force behind quantitative easing and a Fed Funds rate at basically zero percent.

These policies have hurt holders of interest bearing securities like certificates of deposit so it will be interesting to see if CD rates move higher before mid-2015 which is the current date the Fed announced they plan to keep the Fed fund's rate at zero percent. Current bank CD rates and credit union CD rates are dismal. The national average 12 month CD rate in this week's FDIC survey is at 0.25 percent. Thankfully the best CD rates on 12 month certificates of deposit are just over 4 times the FDIC average.

The best CD rates on our rate list for 1 year certificates of deposit are currently at 1.10 percent with an APY of 1.11 percent. Alsostar Bank is the lone bank offering that rate and yield for deposits of at least $1,000. The second highest CD rates on our rate list come from two different banks, CIT Bank and Bank of Internet USA. CD bank rates on 1 year certificates of deposit at both banks are at 1.09 percent with an APY of 1.10 percent. CIT Bank's minimum opening deposit to earn that CD rate and CD yield is $25,000, Colorado FSB's minimum balance is $5,000 and Bank of Internet's minimum is $1,000.

Other top CD rates at banks on our list that are well above the FDIC national average 12 month rate include MetLife Bank CD rates, Sallie Mae Bank CD rates and Colorado Federal Savings Bank which are all offering 12 month CD interest rates at 1.04 percent with an APY of 1.05 percent. By the way, all the 12 month CD rates listed here are also 4 times the FDIC average 12 month jumbo CD rate of 0.26 percent.

Two year bank CD rates right now are also very low and just above the highest 1 year CD rates. The FDIC national average 2 year CD rate is at 0.42 percent this week. The highest 2 year CD rate on our list is almost three times the FDIC average rate. Alostar Bank has the highest 2 year CD rate at 1.25 percent with an APY of 1.26 percent. The minimum opening balance to earn this rate and yield on an Alostar Bank certificate of deposit is $1,000.

The second best 2 year CD rate on our rate list is from CIT Bank and Barclays Bank. Current CIT Bank CD rates and Barclays Bank CD rates on 2 year certificates of deposit are currently at 1.24 percent with an APY of 1.25 percent. The minimum opening deposit to earn the 2 year rate and yield is $25,000 and Barclays has no minimum opening deposit.

The third highest CD interest rate on our 2 year certificate of deposit list is from Able Banking. Current ableBanking CD rates on 2 year certificates of deposit are at 1.18 percent with an APY of 1.19 percent. The minimum opening deposit $1,000. ableBanking also has an unique feature on their certificate of deposit accounts. Every year you can give 0.25 percent bonus of the balance of your account to charity. You don't pay the 0.25 percent, the bank does.