Bank CD Rates Comparison

CD accounts or certificate of deposit accounts are those which yield relatively high returns than conventional bank accounts. Their interest rates are expressed in annual percentage yield or APY. These rates are very high in general. However banks vary widely in the rates they offer to customers. Let us discuss the rates offered by some top banks.

Everbank

Everbank as of February 2010 offers a CD rates of around 1% APY for a 3 month term and around 3.5% APY for 5 year term. These rates are very high when compared to several other banks.

Allybank

Just like Everbank, Allybank too offers good rates of around 1% for short term CDs from 3 to 6 months. But when it comes to 3 year term, the yield is close to 2.5% which is a bit lower than that of Everbank. However, the bank compensates with other benefits like zero opening balance, nil service charges etc. Also, opening an account is an easy process and is completely automated in both of the above banks (EverBank and AllyBank).

American Express FSB

American Express FSB is another top bank offering high yielding CDs. They again offer an interest rate close to 1% APY for 3 month CDs. But when it comes to three year period, their rates are on the lower side when compared to AllyBank and EverBank. They offer a rate closer to 2.25% APY.

Conclusion

As one can see bank cd rates comparison can reveal one bank outperforming the others. But this is not the only criteria to select a bank. Norms on service charges, other taxes etc should be carefully read before signing a deal.

Before signing a deal with a bank it is extremely important to compare CD rates across top performing banks to find which of the accounts can offer high returns.

Source: EzineArticles.com