Best savings account rates in California: Top 2

If you’re in the market for a traditional savings accounts – one with a variable interest rate and limited withdrawal allowances, don’t expect much in the way of great interest rates. The average yield for online savings accounts (money market accounts) are providing yeilds of less than 1.00% APY and the average yield for 12 month CDs (fixed interest rate for 1 year with penalties for early withdrawal) are garnering a rather pathetic 1.50% APY.

However, if you reside in the state of California and are willing to consider a couple of credit unions as potential options for your business, then you may be able to snag some higher rates. Below are summaries of two accounts that have better than average savings rates as well as a unique approach.

First is Alliant Credit Union, based out of San Francisco, California. Their savings accounts are currently yielding 2.0% APY (almost twice the national average for these particular accounts). The only problem with Alliant is that their doors are not open to everyone. If you do not fit within their membership eligibility guidelines then you’re most likely out of luck.

The second option, however, opens their doors to potential customers nationwide so long as you’re willing to open a membership savings account and maintain a balance of $5.00. Provident Credit Union, out of Redwood Shores has many locations throughout California. They have branch locations in Belmont, Dale City, Eureka, Folsom, Hayward, Los Gatos, Oakland, Millbrae, Palo Alto, Redwood City, Redwood Shores, San Francisco, San Jose, San Mateo, San Ramon, Sunnyvale, and Walnut Creek. Their savings account is called the “Accumulator Account” and promises a 1 year savings plan with a much higher rate than their 1 year CD (certificate of deposit). What’s unique about this account is that they guarantee the interest rate through 12 months (even if the market falls drastically). The “floor yield” is determined by the credit union and adjusted in January of each year. For 2008, the interest rate has been set at a now seemingly high 2.00% APY, however this rate will be readjusted next month.

Top 18 month CD rates yielding 2.40% APY

The best 18 month CD rate in the country is currently yielding 2.40% APY. After digging through numerous rate pages from dozens of banks and credit unions across the nation we have found the best offer coming from a Chicago area credit union – Alliant Credit Union.

To earn the 2.40% APY on an 18 month CD, you must deposit at least $25,000 as well as be a member of the credit union. Below are few ways in which you can join:

• Any employee or member of a qualifying organization
• Any person who lives or works in the following Chicagoland communities: Arlington Heights, Bensenville, Des Plaines, Elk Grove, Elmhurst, Franklin Park, Harwood Heights, Itasca, Mount Prospect, Northlake, Niles, Norridge, Park Ridge, Prospect Heights, River Grove, Rolling Meadows, Rosemont, Schiller Park, Wood Dale and Chicago O’Hare Airport property
• Any person related by blood or law to an existing member
• Domestic partners of unmarried members

Ok, so now for an 18 month CD in which EVERYONE can take advantage of…

The top CD rates accompanying an 18 month term which is available to all customers across the country comes from MetLife Bank. Their rates on this particular product range from 1.35% APY to 2.15% APY depending on how much you can deposit. If you deposit between $2,000 and $14,999 you will only receive an interest rate of 1.35% APY. If you deposit between $15,000 and $24,999 you will receive an interest rate of 1.85% APY and if you can make a deposit of $25,000 you will earn a very respectable 2.15% APY.

If you happen to be in the market for a secured credit card, then you may want to review Citi Bank’s 18 month CD deal, in which they packaged a fantastic CD rate with a new credit card.

Do you know of a better 18 month CD rate offered through your local bank or credit union? If so, leave a comment. Be sure to mention where your bank is located.

Best 3 year CD rates yielding 3.0% APY

You will be hard pressed to find 3 year CD rates yielding above the 3.0% APY mark (especially if you are looking for certificates of deposits available nationwide). The top 36 month CD rates in which we have come across over the course of November have come from either credit unions or national banks.

The best of them comes from Flagstar bank which has a three year CD yielding 3.0% APY. You must deposit a minimum of atleast $500 to receive this interest rate. Flagstar’s current rates on their CD’s take an interesting yet profitable jump from the 30 month to 36 month term. Their 30 month CD only provides yields of 2.16% APY and their 36 month CD provides a much more lucrative 3.0% APY. One thing to note is that you must type in your zip code before being provided with their interest rates. After testing a number of zip codes in major cities throughout the country we have found that the 3 year CD yielding 3.0% APY is fairly common.

The next best interest rate is also a 3 year CD with a 3.0% return, however it comes from Alliant Credit Union which has some fairly strict requirements for eligibility. Currently you can invest in a 3 year CD with the 3.0% return if (A) you deposit atleast $50,000 and (B) you fit the following requirements:

• live or work in the following Chicagoland communities: Arlington Heights, Bensenville, Des Plaines, Elk Grove, Elmhurst, Franklin Park, Harwood Heights, Itasca, Mount Prospect, Northlake, Niles, Norridge, Park Ridge, Prospect Heights, River Grove, Rolling Meadows, Rosemont, Schiller Park, Wood Dale and Chicago O’Hare Airport property
• Any person related by blood or law to an existing member
• Domestic partners of unmarried members

If you cannot deposit the $25,000 minimum you will still earn a respectable 2.85% APY. If you happen to know of a better 3 year CD rate, please share by leaving a comment!

CD rate with a 4% APY through Alliant Credit Union

We have officially hit the point in our recession where a 48 month term certificate of deposit yielding a 4.00% APY is actually competitive. With the Down down to 7500, a growing unemployment rate, failing banks (already 9 in 2009) and fears of inflation, you get a fairly stagnant savings rate – which most consumers simply hope stays above the rate of inflation.

Currently Alliant Credit Union of Illinois, has some of the highest CD rates currently available if you are willing to commit your savings to longer maturities.

Current CD Rates through Alliant Credit Union

Certificate of Deposit with minimum balance of $1,000 and maturity period of 12-17 months yields between 3.00% – 3.15% APY (depending on deposit amount).

CD with minimum balance of $1,000 and maturity period of 24-35 months yields between 3.15% – 3.30% APY (depending on deposit amount).

Bank CD’s (Certificate of Deposits) with minimum balance of $1,000 and maturity period of 36-47 months yields between 3.60% – 3.75% APY (depending on deposit amount).

Alliant Credit Union Certificate of Deposits with minimum balance of $1,000 and maturity period of 48-60 months yields between 3.85% – 4.00% APY (depending on deposit amount).

About Alliant Credit Union

Alliant Credit Union provides exclusive, lifetime benefit to employees and retirees of United Airlines and select business affiliates, employee groups, qualifying communities, family members and domestic partners. They have more than 234,000 members and nearly $5.8 billion in assets and are the eighth largest U.S. credit union out of nearly 10,000 based on asset size.

They primarily serve the people of the Chicago, Illinois surrounding area, and are fairly exclusive as far as membership goes.