Taking into consideration that the current national average for 1 year CD rates and 3 year CD rates sits at roughly 0.80% and 1.20% APY respectively, we thought we’d scrounge up the most noteworthy CD rates we could find that were providing yields above 2.0% APY and publish them in this post. And unfortunately, after compiling this list, we found that in order to yield 2.0% returns or above on your bank CD you’ll need to invest in at least 4 year terms.

CD Rates with yields above 2.0% APY:

(Rates accurate as of September 2011.)

1) El Paso Teachers Federal Credit Union offering a 48 month CD yielding 2.72% APY with a minimum deposit of $10,000 required. *Not available nationwide.

2) American Airlines Federal Credit Union offering a 48 month CD yielding 2.42% APY with a minimum deposit of $10,000 required. *Not available nationwide.

3) Alliant Credit Union offering a 48 month CD yielding 2.35% APY with a minimum deposit of $1,000 required. Available in several states. Visit AlliantCreditUnion.org for further information.

4) SeaComm Federal Credit Union offering a 48 month CD yielding 2.25% APY with a minimum deposit of $1,000 required. Available in many states in the Southeast.

5) Tarboro Savings Bank offering a 48 month CD yielding 2.28% APY with a minimum deposit of $500 required. This is a community Bank based out of North Carolina.

Know of a community bank or credit union with CD rates above 2.0% APY? Let us know by leaving a comment!

So after reiterating the doom-and-gloom state of the market for savers (above), if you still need to open a CD in California here are our top finds from both local credit unions and community banks as well as larger national institutions and online banks. If you live in CA and know of a better CD rate offered through your local bank in which we haven’t covered in this post, please share by leaving a comment!

California CD Rates – Highest APY’s in 2011:

(Rates accurate as of July 2011. Visit our CD rates center for updated rates and promotions from around the country. Also, keep in mind that the products we’ve mentioned below are short term CDs with durations between 6 and 24 months. You can likely lock in slightly higher rates from CDs with longer maturities, however we wouldn’t recommend going long on a bank CD in this environment as inflation may eliminate a large portion of your earnings.)

- Pacific Alliance Bank has a 6 month CD and a 12 month CD both yielding 1.10% APY with minimum deposits of $5000 required. They are a very small bank operating mainly out of Rosemead California. You’ll have to contact the bank directly to see if you’re eligible to open on of these deposits.

- Neighborhood National Bank has a 6 month CD yielding 1.01% APY with a minimum deposit of $1,000 required. Neighborhood National Bank has two “headquarters” in California – one in San Diego and the other in El Cajon. You’ll have to contact a representative from one of these locations to open a deposit.

- American Plus Bank (Roland Heights, CA) has a 12 month CD yielding 1.26% APY with a minimum deposit of $10,000 required.

- Beal Bank, FSB (San Diego, CA) has a 12 month CD yielding 1.256% APY with a minimum deposit of $1,000 required.

- Alliant Credit Union (San Francisco, CA) has a 24 month CD yielding 1.60% APY with a minimum deposit of $1,000 required.

- American Airlines Federal Credit Union (San Jose, CA) has a 24 month CD yielding 1.56% APY with a minimum deposit of $10,000 required.

To put the offers above in perspective the national average for 6 month CDs sits at roughly 0.60% APY. The national average for 1 year CDs sits at roughly 0.90% APY and the national average for 2 year CDs sits at roughly 1.05% 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.

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.

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!

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.