Top CD Rates | Best 1-Year CD Rates

Yes, I’m still alive. And today I bring a new post with the best 1-year CD rates that I can find.

The FDIC has closed 38 banks so far in 2010. They are on pace to close more this year than last year. Hundreds of banks are in the under-capitalized category and most of those will not be able to recover. Still looming residential losses plus impending commercial losses will just be too much.

When considering 1-year CD rates you want your bank to be around. So check for the health of the bank.

Nevertheless here are some top CD rates I found.

It seems that credit unions are leading the pack.

Alliant Credit Union has a 2.10% APY for a 1-year CD. The rate is good from 1-year to 23-months. Interest is paid at maturity only. 5-star Rating.

Melrose Credit Union out of New York has a 2.07% APY.

Amazingly, I found a bank with a 2.00%. Most banks are in the 1.50% range because of the FDIC National rate cap. Check out First City Bank. 2.00% APY. They can be reached at 888-244-5151. Of course there are a couple of caveats. It is a 15-month CD which is what gets them around the FDIC cap. They have a 0-Star rating. And to make it worse, they are located in Florida. But they are FDIC insured.

Franklin Synergy Bank has a 1.95%, also for 15-mos. They are out of Franklin, TN. They have a 2-star rating.

Use the FDIC or NCUA website to do your own safety check. Take a look at the various ratios. Look for a capital ratio above 7%, a total risk based capital above 10% (only applicable to banks), and if the institution has a loss, make sure it is only about 25% of the capital when you adjust for yearly earnings. This is just a guide. The web also offers some free rating tools. One is found at bankrate[dot]com.