Best online CD (certificate of deposit) rate
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The best online CD rate can be found at Danvers Bank. In fact, they have been offering the most competitive online CD rates for the majority of 2009.
In February Danvers Bank had a 4 month online CD yielding 3.30% APY. Then in March they dropped the rate to a still competitive 2.94% APY.
This is a testament to the current climate of online bank CD’s. Since the beginning of 2009 rates have plummeted drastically. An average 12 month CD still had a yield above 3.0% APY at the beginning of the year, however today the average interest rate associated with one year CD’s sits at a meager 1.65% APY.
Danvers Bank’s 4 month online CD rate now holds an interest rate of 2.0% APY with a minimum deposit amount of $500. Needless to say, this is still a very competitive interest rate given the current national averages. To put this offer in perspective the current national average for money market accounts sits at 1.20% APY and the current national average for six month CDs sits at roughly 1.25% APY.
Danvers Bank is member FDIC and they have made this product available to people nationwide.
One thing to keep in mind is that this product holds a maximum deposit of $25,000, so if you are looking to stash a much larger chunk of cash into a high interest bearing account then you may want to check out the money market accounts offered by United Central Bank.
