Bob Brinker is certainly correct when he says US rates are very low. The top rates for CDs this week are at Pentagon Federal Credit Union (fondly known as PenFed CU) for a 7-year certificate of deposit that currently pays 3.75%% APY. In last month's survey, PenFed paid 4.00% for the same CD term.
For shorter term, Colorado Federal Savings Bank has a 1-year CD with a 2.00% annual percentage rate.
Both CDs compare well with 1-yr and 7-yr US Treasuries (today's rates) that currently only pay 0.35% and 3.22%, respectively. Both CDs and treasuries are backed by the US government. With CDs, the backing by the US is limited to FDIC & NCUA rules to $250,000 per name on the account per institution (there are ways to get FDIC and NCUA for many times $250,000) while the amount guaranteed is unlimited for US Treasuries. See: With rates so low, banks will try to sell you their annuity products. Make sure you read our article "Beware of Annuities."
The table below shows the best CD rates for other terms. If that table is hard to read, then try reading the original at Very Best CD Rates.
Highest CD Rates Survey as of 1/13/09
| Term | Highest Rate (APY) | Where? (Click link for Full Rate Sheets) |
| Vanguard Daily | 0.05% | Vanguard Prime Money Market Fund |
| Vanguard Tax Exempt | 0.07% | Vanguard Tax Exempt Money Market Fund |
| FDIC Daily Savings | 1.70% | Colorado Federal Savings Bank => Full Rate Survey <= |
| High Yield MM | 1.60% | Bank of Internet USA |
| 6 Month CD | 1.51% | Ascencia Internet Bank |
| 1 Year CD | 2.00% | Colorado Federal Savings Bank |
| 18 - Month CD | 2.05% | Colorado Federal Savings Bank |
| 2 Year CD | 2.25% | Colorado Federal Savings Bank |
| 3 Year CD | 2.71% | National Bank of Kansas City |
| 4 Year CD | 3.03% | National Bank of Kansas City |
| 5 Year CD | 3.35% | OneWest Bank, FSB; Pasadena, CA |
| 7 Year CD | 3.75% | Pentagon Federal CU |
| 10 Year CD | 3.70% | Discover Bank |
Vanguard Money Market Rates shown for Reference
If your browser shows small text, then view the original at Very Best CD Rates.
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