Certificate of Deposit Deals

The most common promotion for CDs is a high introductory rate for new deposits. The CD usually renews at a lower rate, so it is good to go for the longest rate you are willing to lock in. Capital One offers 5.5% on a 10 year CD, if you are willing to lock up your money for so long. Capital One and Chase both offer 5% for 5 years. ING’s highest rate is 3.75% for 12 and 18 month CDs, longer term CDs at ING Direct have the lower rate of 3.5%. CitiBank’s special is a 6-month CDs with a 3% APY interest rate. 

Some banks are like Bank of America offering “No Risk CD’s”. At Bank of America, the 9 month CD gets 2% interest, you have to deposit the money you withdraw into another Bank of America account, and you might be required to give 7 days notice before withdrawing the funds. Compare this to earning 1.39% on Bank of America’s money market account or choosing another bank’s money market account, or one of the short term, high interest rate offers.