Current C.D. Rates

M&I Bank has a CD promotion with a 60-month CD with a competitive yield of 4.50% APY. The minimum deposit is $2,500. They also offer two other CD specials with less competitive rates: a 3.75% APY 40-month CD and a 3.25% APY 20-month CD.

Branches are located in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, Nevada and Wisconsin. It’s a large bank with $53.7 billion in assets. Bankrate.com’s review gives it a 3/5 star rating.

We can’t be lulled into thinking that this is a turning point because, as much as the Fed may want to stop cutting short-term rates to quell inflation, they seem to be more concerned with fending off a recession.

The average yield for one-year CDs dropped 4 basis points to 2.43 percent. The five-year CD average lost 4 basis points and now stands at 2.82 percent.

Jumbos fared about the same with the one-year averaging 2.64 percent and the five-year 2.97 percent, down 5 basis points and 4 basis points; respectively.

Rates are probably heading lower in the next few months.

Premier America Credit Union has a new 7.00% certificate promotion. Unlike the previous ones that I’ve recently reported on, this one is listed at the credit union’s website. It’s a 7.00% APY 6-month certifcate with a minimum deposit of $1,000, and a maximum of $5,000. A checking account is required, and funds must be new to the credit union. There’s a limit of one certificate per member/social security number. The last day for this CD special is February 15, 2008.

Field of membership includes members of the Alliance for the Advancement of Arts & Education (AAAE). Anyone can join this organization. According to the membership page:

When you apply for membership, be sure to select “AAAE” on the company listing. Then complete the AAAE application that will be provided during online account opening.

AAAE’s one-time membership fee is $25. Premier America Credit Union will grant this fee on your behalf when you join AAAE to become a qualifying member with Premier America Credit Union. The funds will be sent to the AAAE office, and will be used to support arts and education mission.

You can qualify to join Premier without joining AAAE if you live, work, worship or attend school in parts of California or within 10 miles of our Westchase branch in Houston, Texas. In addition, you can be eligible if you’re an employee or member of a long list of companies and organizations.

With the recent Fed rate cuts, Wells Fargo has lowered their rates on their online CD special to 3.50% APY. Minimum balance on this certificate is $5,000, and the term to maturity is 5 months.

Aside from this special, Wells Fargo CD rates are a bit low, ranging from 1.50% to 3.00% APY.

At maturity, CD will automatically renew for the Renewal Term stated above, at the interest rate and APY in effect for CDs not subject to a Special Rate, unless the Bank has notified you otherwise.

This CD is only available online and not through brick and mortar Wells Fargo Banks.

Wachovia Bank has some pretty high rates on their special promotional CD, with a 5.05% APY yield and 5 month term. Minimum deposit for this certificate is $5,000.

This CD is only available online. Other online CDs have terms ranging from 3 to 24 months, and yields from 3.16% to 4.25%. Visit Wachovia’s rate table for more information.

IndyMac Bank currently holds the top spot for the best short term CD rates, with a 5.40% APY on their 3 and 4 month CDs. Minimum deposit on this CD is $5,000. CDs can be opened and funded online, and there isn’t a hard credit pull when you apply.

IndyMac bank has had some problems recently with the mortgage subprime mess, so it would be prudent to have a deposit lower than the FDIC insured $100,000.

Countrywide bank currently has the highest CD rate available in the 6 month certificate category, with a 5.30% APY. They also offer 5.25% for 3 month CDs and 5.10% for 1 year CDs. Minimum deposit on all CDs is $10,000.

Countrywide is offering higher rates for business certificates of deposits, with 5.35% APY on their 6 month CDs and 5.30% and 5.15% for 3 and 9 month CDs, respectively.

With recent subprime mortgage troubles, Countrywide has been lagging behind other banks in dropping their rates. It would be wise to keep your deposits with Countrywide below the $100,000 insurance minimum.

Indymac Bank currently has a a special internet promotional CD with a 5.45% APY and 4 month maturity term. Minimum amount required to open this certificate of deposit is $5,000. This promotional rate applies only to the initial CD term. Interest is compounded daily and paid or reinvested into the account monthly or at maturity. This rate is only available online.

Bank of America is currently running a certificate of deposit promotion called the “high yield CD” with a short 4 month term and a 5.10% APY rate. This CD must be opened online, and has a $5,000 minimum. Bank of America also offers a “risk free CD” which has a 4.85 APY and allows you to withdraw money prior to the maturity date.

These aren’t necessarily the best CD rates available, but they are still pretty high for a traditional brick and mortar bank. If you already do your banking with Bank of America, it might make sense to open a CD with them for convenience.

ING Direct just launched a new CD promotion called The Added Value CD with a yield of 5.25% APY for a 9 and 12 month CD term. The regular Orange CD yield for these terms is 5.15% APY. The Added Value CD requires the funds to be new money, and the minimum deposit is only $1.

While this isn’t necessarily the highest rate available, for those who already have ING Direct savings or checking accounts, this can be beneficial. Everything can be done online from your account to open and close a CD. So for some, the simplicity can make it worthwhile.

ING Direct also offers a high yield savings account with a 4.5% APY. ING Direct is FDIC insured.