Although short term CD rates are historically low these days, you can still find relatively lucrative APYs if you take the time to scour your state for the best CD rates. We’ve found that – generally speaking – most people will simply plop the money they intend to invest in FDIC insured savings accounts into any sort of vehicle their current bank recommends, however, if you want to maximize your returns you may want to shop around at other banks and credit unions for higher returns. Small community banks and credit unions (as well as online banks) are most likely going to be your best bet for interest rates. Community credit unions are not-for-profit, member owned institutions which pass any profits back to their customers or “owners” in the form of higher savings rates (and lower loan rates). Online banks can generally offer higher interest rates as well due to their lack of overhead expenses by not keeping any brick and mortar branches on their books.
Today, we’d like to provide an example of an institution offering a 6 month CD with an interest rate that is currently doubling the national average. Public Service Federal Credit Union (out of Middlesex, New Jersey) has a six month CD yielding 1.27% APY. To put this offer in perspective, the national average for 6 month CDs is just 0.65% APY. And even though this product is only available to residents in New Jersey, these hidden gems can be dug up in many states throughout the country. Use our CD rate database to find the best offers in you area or scroll through our archives to get a better feel for what’s available near you.
Complete List of CD Rates offered through Public Service FCU (New Jersey):
(Rates accurate as of 11/2010. Visit psfcunj.com for updated rates.)
- 6 month CD yielding 1.27% APY with a minimum deposit of $1,000 required.
- 12 month CD yielding 1.53% APY with a minimum deposit of $1,000 required.
- 2 year CD yielding 2.05% APY with a minimum deposit of $1,000 required.
- 3 year CD yielding 2.15% APY with a minimum deposit of $1,000 required.
- 4 year CD yielding 2.25% APY with a minimum deposit of $1,000 required.
- 5 year CD yielding 2.36% APY with a minimum deposit of $1,000 required.