CD Rates from the Largest Banks

The largest banks don't offer the best CD rates; in fact their CD rates don't even beat the average CD rates currently available.All four of the largest bank holding companies (BHCs) are flush with reserves and haven't been lending as much in the past couple of years since lending standards have been tightened.They all have made a ton of money since the Fed funds rate has been in a targeted range of zero percent to one quarter percent.


They are borrowing money for near zero percent and investing in higher yielding U.S. Treasury bonds. Why even bother offer decent CD rates and savings rates or making loans when you can make a ton of money with zero risk. The four BHCs, Bank of America, JP Morgan Chase, CitiGroup and Wells Fargo Holding Company all offer CD rates that are well below the national average CD rates. Of the four, Chase Bank and Wells Fargo offer the worst CD rates right now for a 12 month CD. Chase Bank's 12 month certificate of deposit has a CD rate of 0.25% and an APY of 0.25%.Wells Fargo's 12 month standard certificate of deposit has a CD rate of .30% and an APY of .30%. Businessweek reported that Wells Fargo is positioning itself for higher interest rates by cutting its bond holdings by $34 billion in the second half of 2009. If Wells Fargo is preparing for higher interest rates you would think they would want to have depositors lock into longer term certificate of deposits at these current lower CD rates. Here is a list of current CD yields from the four largest BHCs.

Bank of America CD yields. Min $1,000 for a standard CD.

3 month 0.35 APY 6 month 0.35 APY 12 month 0.65 APY 18 month 0.85 APY 24 month 1.11 APY 36 month 2.01 APY 48 month 2.01 APY 60 month 2.51 APY

Chase Bank CD yields. Minimum  $1,000.

6 month 0.25% 12 month 0.25% 24 month 1.01% 36 month 1.01%

Citibank CD yields. Minimum  $500

3 month .25 APY 6 month .35 APY 12 month .85 APY 18 month 1.01 APY 24 month 1.15 APY 36 month 1.50 APY 48 month 2.00 APY 60 month 2.50 APY

Wells Fargo CD Yields. Minimum $2,500.

Standard CD 3 month 0.10 APY 6 month 0.15 APY 12 month 0.30 APY Special Offers 15 month 0.55 APY 21 month 0.90 APY 28 month 1.40 APY 35 month 1.90 APY