Top CD Rates for 1, 2, 3, 5, 7 & 10-yr Terms

Guest Article by Kirk Lindstrom (KirkLindstrom.com)

The top rate for a certificate of deposit (CD) this week is at Pentagon Federal Credit Union (fondly known as PenFed CU) where you can get a 7-year certificate that currently pays 3.49% APY.

For shorter terms, Melrose Credit Union has a 1-year CD with a 1.51% annual percentage rate.

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.

For Larger Text: If that table is hard to read, then try Very Best CD Rates.

Highest CD Rates Survey by Term as of November 9, 2010

Term	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Vanguard Daily	0.07%	Vanguard Prime Money Market Fund
Vanguard Tax Exempt	0.12%	Vanguard Tax Exempt Money Market Fund
FDIC Daily Savings	1.40%	Best Savings Account Rate Survey
6 Month CD	1.15%	Bank of Internet USA
1 Year CD	1.51%	Melrose CU
1 Yr US Treasury	0.21%	US Treasury Rate Quote
18 - Month CD	1.55%	MetLife Bank
2 Year CD	1.76%	Melrose CU
3 Year CD	2.27%	Melrose CU
4 Year CD	2.52%	Melrose CU
5 Year CD	3.03%	Melrose CU
5 Yr US Treasury	1.18%	US Treasury Rate Quote
7 Year CD	3.49%	PenFed CU
10 Year CD	3.00%	Discover Bank
10 Yr US Treasury	2.60%	US Treasury Rate Quote

Vanguard Money Market & US Treasury Rates shown for Reference

Related Information:

• Historical CD Rate Graphs
  
• Historical Mortgage Rates
  
• World Stock Markets at a Glance
  
• Easy to Read Best CD Rate Survey

With rates so low, banks will try to sell you their annuity products. Make sure you read our article: Beware of Annuities.
The one year US Treasury rate is currently 0.28%.

• Quotes: US Treasury Rate Quotes
  
• Graphs: US Treasury Rates at a Glance

 6-Month CD  Daily Chart

30-Year Conventional Mortgage Rates

Warning:  Banks and credit unions with high promotion rates to attract new deposits often have high early withdrawal penalties to recover the benefits should you need your money before the agreed upon term.  Make sure you read the fine print before making a decision.  If you think you might need some of your money before 5 years, for example, then you should consider splitting it into several CDs with multiple terms.  Perhaps split the money into 5 CDs with terms of 1, 2, 3, 4 and 5 years.  If you don't need the money when the 1 yr CD matures, you can roll it over into a new 5YR CD then do the same each year until you have a ladder of 5YR CDs that mature one per year.

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