Falling CD Rates

The “bad news” part of the interest rate story is that CD rates are falling. What helps when you want a mortgage, hurts when you want to earn money on your savings. But fears of inflation and the need for banks to attract money could cause rates to go up later. Some banks have been offering their best rates on medium term CDs, so you don’t absolutely have to lock in for the longest term to get the best rates.

Flagstar Bank CD’s

In December, the rates have been falling, but there are still some good deals.
Flagstar and Discover offer some of the highest rates. Flagstar’s own website lists their rates as 4.05% for a 5 year CD, 3.34% for a 1 year CD, and 2.84% for a 6 month CD, which are lower than rates posted for them on other sites, but still quite good compared to other banks.

Discover Bank and ING Direct CD’s

Discover Bank offers 4.00% for a 5 year CD, 2.75% for a 1 year CD, and 2.00% for a 6 month CD,
ING Direct’s 1 year Orange CD has fallen from 3.75% to 3.25%. ING Direct’s highest rates have been on their 12 month and 18 month CDs. Their longer term CDs are actually only 3%. Their 6 month CD is 2.25%.

Citibank and Bank of America CD’s

Citibank and Bank of America also have their highest rates on 1 year CDs. Citibank’s website is set up to offer different interest rates if you invest different amounts, but right now the rates are the same for all amounts. Citibank’s rates are 2% for a 6 month CD, 2.55% for a 1 year CD, and only 2.25% for a 5 year CD.


Bank of America does offer different rates for different investment amounts on their 6 month CD, 1.00% on less than $10,000, 1.35% from $10,000 to $100,000, and 1.75% for amounts over $100,000. Their rate on a 1 year CD is 2.23%, and a 5 year CD is 2.08%. Bank of America also offers many special CDs. There is a 9 month “Risk Free” CD with a rate of 1.6% that lets you withdraw money without penalties, a high yield CD (2%), and an “Opt Up” CD that will let you opt to a higher rate anytime after the account has been open 6 months
Capital One has a special, 2 year CDs with 4% interest. Other than that, they follow the usual pattern of higher interest for longer terms. There 6 month CDs are 1.5%, one-year CDs earn 2.5%, 5 year CDs earn 4.5%, and they offer 7 and 10 year CDs that earn 5%.
Chase generally has very low rates, but is offering a 5 year CD with 5% interest.