Finding the best CD rates these days has become a lot easier with comparison sites. Since certificate of deposit rates are so low it pays even more to shop around. The national average CD rate on a 12 month CD is 1.33 percent this week. You can higher CD rates than the national average.

We searched for 12 month CD rates in Orlando, Florida, using our the CD search engine. The results are listed below.  As you can see several bank CD rates are higher than the national average rate.

You can find a list of banks and credit unions offering CD rates in your area. All you have to do is select the CD type, enter your zip code and click on “Display CD Rate Table” and a list of rates in your area will be displayed.

Search for CD Rates Here

Discover Bank just annouced a new program that allows 12 month CD account holders to withdrawal their money penalty free if they become unemployed.

Discover Bank will allow penalty-free early withdrawals from 12-month certificates of deposit for new and renewing account holders who lose their jobs.

To qualify for penalty-free withdrawals account holders must open or renew a 12-month CD with a minimum $2,500 balance between July 1 and Dec. 31, 2009. If the account holder involuntarily loses his or her job during the term of the CD, they will be allowed to make a partial withdrawal of the funds or close the account with a full return of their principal and any credited interest with no penalties. The program also applies to self-employed people under certain circumstances.

Discover Bank

One of our readers, Amanda Bonzo , alerted us to this deal. Thanks Amanda!

Bank CD rates were mixed this past week with longer term CD rates increasing and shorter term CD rates contining their slide down. The increase in longer term CD rates wasn’t much but at least rates are headed in the right direction.

Certificate of deposit rates are not expected to increase by much until the economy recovers and the Fed starts raisinginterest rates.

I wonder if there is a chance CD rates will increase at banks that payoff the funds they borrowed from TARP. Banks that do payoff TARP might be compelled to increase deposit rates if the economy takes longer to recover and they have to write off more bad loans as a result. The other option is to borrow again from TARP which is a lot less appealing than raising CD rates.

Banks that have won approval from the Treasury Department to pay back TARP funds include, JP Morgan Chase, Goldman Sachs which became a bank holding company last fall to survive during the credit crises, Bank of New York Mellon, State Street, Capital One, BB&T, U.S. Bancorp, Northern Trust and Morgan Stanley.

CD Rates

The average rate for a three month certificate of deposit rates decreased to 0.765 per this week, down from the previous week’s average rate of 0.774 percent. Ally Bank is offering one of the best CD rates on a 3 month CD, their rate is currently 1.24 percent with an annual percentage yield of 1.25 percent.

Six month certificate of deposit rates are averging 1.068 percent this week, down from the prior week’s average CD rate of 1.076 percent. Aurora Bank is currently offering one of the highest CD rates for a 6 month CD, their rate is at 1.75 percent with an annual percentage yield of 1.7654 percent.

The average CD rate for a 12 month CD declined to 1.348 percent this week, down from last week’s average CD rate of 1.358 percent. First Fed Direct is offering a 12 month bank CD yield of 2.30 pecent.

18 month certificate of deposit rates were down this week to 1.491 percent, down from the prior week’s average CD rate of 1.503 percent. OneWest Bank is offering a promotional CD rate of 2.37 percent with an APY of 2.40 percent for an 18 month CD.

The average rate for a two year CD was up this past week to 1.751 percent, up from last week’s average CD rate of 1.749 percent. Tennesse Commerce Bank is offering one of the best CD rates for a two year CD, their rate is currently at 2.62 percent with an APY of 2.65 percent.

Three year CD rates at banks increased to 2.016 percent, up from the prior week’s average rate of 2.005 percent. Melrose Credit Union is offering one of the top CD rates for a three year CD, the CD rate is currently 3.00 percent with an APY of 3.03 percent.

The average rate for four year CD is up to 2.231 percent, up from the previous week’s average rate of 2.221 percent. Intervest National Bank is currently offering a rate of 3.49 percent with an annual percentage yield of 3.55 percent for a four year CD.

Five year CD rates averaged 2.469 percent this week, up from last week’s average rate of 2.467 percent. Pentagon Federal Credit Union if offering an annual percentage yield of 4.00 percent for a five year CD, you will have to join the credit union to recieve the rate.

Mortgage loan applications increased this past week as mortgage rates stabilized. The rapid increase in mortgage rates the past month put a damper on mortgage applications and mortgage refinance activity. Mortgage rates have stabilized since U.S. Treasury prices leveled off from their recent highs.

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey. Their survey showed an increase of 6.6 percent on a seasonally adjusted basis from 514.4 the prior. The MBA’s Refinance index also showed an increase this week, the index was up 5.9 percent over the prior week.

The Federal Open Market Committie released their statement on economic activity today. In their Fed speak, they basically said the economy isn’t tanking as fast, the credit markets have improved, spending by consumers is stabilizing, businesses are still cutting back on buying and employing people but inventories are down which is a good sign, the economy isn’t going to recover that quickly but the government programs that have been put into place are having an impact and the economy should grow again.

Here is the FMOC statement:

“Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit.

 Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales. Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.

The prices of energy and other commodities have risen of late. However, substantial resource slack is likely to dampen cost pressures, and the Committee expects that inflation will remain subdued for some time.

In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

As previously announced, to provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn.

The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets. The Federal Reserve is monitoring the size and composition of its balance sheet and will make adjustments to its credit and liquidity programs as warranted”

Are you one of the many people who have run up a good amount of credit card debt during the past several years? The credit card offers just kept coming in the mail - American Express, Visa and MasterCard all from several different banks every day with those zero percent balance transfer offers. You may have also been surprised  by a letter informing you that your retail card has been “upgraded” to a national bank credit card.

Are you in over your head because of having too much credit card debt? Now that the party is over and the credit punch bowl has been taken away, how do you pay down or pay off the credit card balances? By coming up with a plan!

The task of paying off credit card debt is possible but it won’t be easy. You have to change your spending habits and become a saver. A lot of people are being forced into the saver category because credit card issuers are cutting back on credit by lowering credit lines. Several months ago, American Express offered cash to some of their credit card holders if they paid off their credit card debt and closed their credit card account.

Paying off Your Credit Cards

Start out by coming up with a realistic budget of all your current expenses. Account for all purchases - however small they are. You would be surprised at how much the little purchases add up. After you have a good idea of how much you are actually spending right now, start cutting the fat and add up the total potential savings. You will probably be pleasantly surprised how much money you can save to pay off your bank credit cards.

Involve your entire family in this decision. If you have children old enough to understand the goal your family is trying to achieve, involve them in the process of eliminating debt. Making these decisions can be stressful but involving kids gives them the feeling of making contributions and sacrifices as well. This will also help them understand any cuts that are made to their allowance or spending.  It always helps to show your children the benefits of saving and self-discipline - the sooner the better.

Now that the entire family has come up with ways to reduce credit card debt, you must keep track of all your family’s spending going forward. You can either create a list like a checkbook register or a simple spreadsheet that tracks each day’s purchases. There are also several personal finance software packages such as Quicken or Microsoft Money. Most offer a 30 day trial period for you to find the best fit for your family and have the added benefit of being able to download information directly from most accounts including checking, credit cards and some investment accounts.

When making purchases, use a debit card or cash if you can. If you do use a credit card, try to use a rewards credit card for everyday purchases since you can get up to five percent cash back on groceries on a cash back credit card. Have the entire family only use one debit card account or credit card account, this will make tracking purchases easier.

When making a credit card payment, be sure to pay off the highest interest rate credit card first. Keep in mind that many enticing offers of low interest rates come with a limited time and the interest rate may increase dramatically when the introductory period is over. Attack that credit card balance first by paying as much as you can while making at least the minimum payment on other credit cards.

When you have made good progress on paying down credit card debt, reward your family with a dinner out or some other pleasurable thing your family likes to do. Be sure it’s done as a family so the entire family can acknowledge the progress that’s been made.

CD rates continued to fluctuate fractionally this past week. Bank CD rates were down for all certificate of deposit terms. Surprisingly the average certificate of deposit rate hasn’t changed much this year, fluctuating in a narrow range.

CD rates at banks will stay at this low narrow range until the Fed starts increasing the Fed Funds rate when the fear of inflation comes back.

Just the opposite has happened, inflation fears have subsided this past week, the consumer price index (CPI) on a seasonally adjusted basis, rose 0.1 percent in May after being unchanged in April. The index for all items less food and energy increased 0.1 percent in May after increasing 0.3 percent in April. We don’t anticipate bank CD rates to increase until the end of this year or early in 2010 when the economy recovers.

Shorter term CD rates fell this past week. The average rate on a 3 month certificate of deposit was down to 0.774 percent, down from last week’s average rate of 0.787 percent. UFB direct is offering one of the highest CD rates around for a 3 month certificate, their rate is currently at 1.65 percent.

Six month certificate of deposit rates were down this week, the average rate on a six month CD is currently 1.076 percent, down from last weeks average rate of 1.091 percent. AIG Bank is offering one of the best CD rates for a six month CD, their promotion rate is currently at 1.86 percent.

The average rate on a one year certificate of deposit is at 1.358 percent this week, down from last week’s average rate of 1.372 percent. You can find rates a lot higher than the average CD rate on a one year CD. Discover Bank is offering one of the top CD rates on a one year CD, the CD rate is currently at 2.30 percent.

Average rates on 18 month certificate of deposits are at 1.503 percent this week, down from the prior week’s average CD rate of 1.513 percent. Tennessee Commerce Bank is currently offering a rate of 2.45 percent for a 18 month certificate.

Two year certificate of deposit rates averaged 1.749 percent this week, up from last week’s average CD rate of 1.748 percent. Discover Bank is offering a competitive CD rate on a two year CD, the average rate is currently at 2.65 percent.

Longer term certificate of deposit rates aren’t that much higher than shorter term CD rates. We recommend sticking to shorter term CD rates this year because rates will increase by the end of the year. If you’re still interested in longer term CDs the average rate on a three year certificate of deposit is currently at 2.005 percent, down from last week’s average rate of 2.008 percent.

The average rate on a four year certificate of deposit is at 2.221 percent this week, a decreased from last week’s average CD rate of 2.224 percent. PenFed is currently offering a rate of 3.75 percent on a four year certificate of deposit.

Average certificate of deposit rates on five year CDs is at 2.467 percent this week, down from last week’s average rate of 2.468 percent. PenFed is also offering one of the highest CD rates on five year CD, their CD rate is currently at 4.00 percent.

Opt-Up certificate of deposit? Bank of America is offering a certificate of deposit they call “Opt-Up”. The Opt-Up certificate of deposit allows you to raise the interest rate you are receiving if interest rates go up. The term on this certificate of deposit is 18 months and the rate is one of the best CD rates around these days. 

In a rising interest rate environment this certificate of deposit would be good to have, especially if you feel a need to lock into a longer term CD. The Opt-Up certificate of deposit is a lot like the “Bump-It-Up” certificate offered by Professional Bank of Coral Gables Florida.

The minimum opening balance is $10,000. The annual percentage yield is currently 1.75%. If certificate of deposit rates rise you contact the bank and ask them to increase the interest rate. You can only contact them to request an increase in the CD rate after the certificate of deposit has been open for at least six months. There is a one-time limit increase. The new CD rate only applies to the remaining term on your certificate of deposit.

Bank of America offers the following example of how a Opt-Up certificate of deposit works. “If your opening interest rate was 3.00%, after six months, if a new Opt-Up CD is offered at 3.50%, your rate could increase to 3.50% for the remainder of the term. These rates are for illustrative purposes only and not indicative of actual rates. See our current rate table or contact us for the latest rates.”

CD rates continued to decline this past week. Average CD rates were down on all certificate of deposit terms. Unlike the recent relentless rise in U.S. Treasury prices that are driving mortgage rates higher CD rates haven’t followed the upturn, not yet anyway.

When the economic outlook improves and the threat of inflation becomes a reality, the Federal Reserve will raise interest rates and that will drive CD rates higher. Average CD rates are low these days but you can find CD rates at banks higher than the nation average rates.

Search for the best CD rates in your zip code here: CD Rates

Average CD Rates:

12 month CD rates are averaging 1.37 percent this week, down from last week’s average rate of 1.39 percent. Ally Bank is still offering some of the best CD rates for a 12 month CD, currently their rate is 2.32 percent, which an APY of 2.35 percent. One of the highest CD rates available these days for a 12 month CD.

Shorter term average CD rates also declined this past week. The average rate for a 6 month CD is currently 1.09 percent, down from the average rate of 1.10 percent the prior week.  Higher 6 month bank CD rates can be found. AIG Bank and Giant bank are offering some of the top CD rates for 6 month CDs, currently AIG Bank’s 6 month CD has a rate of 1.86 percent and Giant Bank’s 6 month rate is 1.91 percent.

The average rate for a 3 month certificate of deposit this week is 0.78 percent, down from last week’s average rate of 0.80 percent. East Bank is offering one of the highest CD rates for a 3 month CD, their rate is currently at 1.60 percent.

Longer term certificate of deposit rates barely moved this past week. 5 year certificate of deposit rates were up fractionally at 2.468 percent, up from the prior week’s average CD rate of 2.485 percent. First Republic Bank is offering one of the best CD rates for a 5 year CD, their rate is currently at 3.75 percent.

4 year certificate of deposit rates are averaging 2.224 percent, unchanged from the prior week’s average rate. Discover Bank CD rates are very competitive these days, their 4 year CD rate is currently 3.25 percent. 

The average rate for 3 year certificate of deposits this week is 2.00 percent, down from last week’s average of 2.01 percent. I remember last year when some banks were offering 1 year CD rates in the four to five percent range.  AIG Bank is offering one of the highest CD rates for a 3 year CD, their rate is currently 2.96 percent. 

24 month certificate of deposit rates are averaging 1.74 percent this week, down from last week’s average CD rate of 1.75 percent. Tennesse Commerce Bank is offering one of the best CD rates for a 24 month CD, their rate is currently 2.87 percent.

The average rate for a 18 month certificate of deposit is 1.51 percent this week, down from last week’s average CD rate of 1.52 percent. Nationwide Bank is offering one of the best bank CD rates available on a 18 month CD, their rate is currently 2.25 percent.

Search for certificate of deposit rates in your zip code. MonitorBankRates.com offers a free bank CD rate serach tool you can access here. CD Rate Search Tool

The $8,000 home buyer tax credit that was passed eariler this year but only provides a tax credit for people who purchase their first home might be expanded to include all home purchases.

Not only will it be expanded to include any home buyer of any home but the credit will also be increased to $15,000. An idea that might help put an end to the weak housing market which has been made weaker with the recent sharp increase in mortgage rates.

U.S. Senator Johnny Isakson, R-Ga,  introducted the legislation to expand the housing credit this week. The lgislation immediately picked up bipartian support by Senators Lamar Alexander, R-Tenn., Jim Bunning, R-Ky., Saxby Chambliss, R-Ga., Chris Dodd, D-Conn., John Ensign, R-Nev., Joe Lieberman, ID-Conn., Lisa Murkowski, R-Alaska, James Risch, R-Idaho, and David Vitter, R-La.

“The man who is transferred from Missouri to Georgia can’t sell his house in Missouri, can’t come to Georgia and can’t take the transfer. His employer can’t afford to buy the house and hold it for him because of the proliferation of inventory that is owned,” Isakson said. “Today, in the United States, one in two sales made every day is a short sale or a foreclosure. That is an unhealthy market, and it is continuing to precipitate a downward spiral in values, loss of equity by the American people and a protracted, difficult economic time for our country.”

The National Association of Realtors and the Housing Working Group of Business Round-table also has endorsed the legislation to strengthen the housing market.

Let’s hope the legislation become law and they find the money to pay for it by making cuts elsewhere. The last thing we need is to further increase the deficit and drive long term interest rates even higher, which will have a negative effect on the housing market in the long run.

The Federal Reserve reported that household net worth declined by $1.3 trillion dollars for the quarter ending in March. Total household worth is now at $50.4 trillion dollars at the end of the first quarter of 2009.

On a positive note, house hold debt also contracted this quarter, the second consecutive quarter. Home mortgage debt didn’t grow at all and consumer credit debt contracted at an annual rate of 3.5 percent.

Just the opposite has happened with state and local government debt this quarter, debt has increased at an annual rate of 5 percent last quarter. Anyone see higher state taxes, property taxes and sales taxes in the future? 

Surprisingly Federal government debt growth slowed down this past quarter to 23 percent, down from the prior two quarters of nearly 40 percent growth.

CD Rates continued to drift downward this past week, although the changes in rates were fractional for the most part. Although yields on bonds rose sharply along with mortgage rates. Hopefully CD rates won’t be far behind.

The biggest news in certificate of deposit land this past week was the ABA’s pressure on the FDIC to crack down on Ally Bank’s CD rates. Which until pressure was successfully applied by the ABA and the FDIC were a lot higher than the national average for CD rates, read more here: Are some bank CD rates risky.

The average rate for 12 month CD rates declined to 1.390 percent this week, down from last week’s average of 1.409 percent. Ally Bank certificate of deposit rates were lowered this past week but the 12 month CD is still one of the best CD rates around, currently the rate is 2.46 percent.

Declines in shorter term CD rates were modest, the average rate for a 6 month CD this week is 1.11o percent, down from last week’s average bank CD rate of 1.128. AIG Bank is offering one of the highest CD rates around for a 6 month CD, the rate this week is 1.71 percent.

3 month CD rates averaged 0.806, down from last weeks average of 0.823 percent. CD rates at banks can be found higher than the national average, La Jolla Bank is offering one of the top CD rates around for a 3 month CD, their rate is 1.60 percent this week.

Longer term certificate of deposit rates were also down this week. 60 month CD rates averaged 2.465 percent this week, down from last week’s average of 2.475 percent. 48 month CD rates averaged 2.224 percent, down from last week’s average rate of 2.235 percent.

Average rates for 36 month certificate of deposits were 2.014 percent this week, down from last week’s average of 2.028 percent. 24 month CD rates averaged 1.759 percent, down from last week’s average of 1.775 percent. 18 month rates averaged 1.529 percent this week, down from last week’s average bank CD rate of 1.547 percent.

MonitorBankRates.com has CD rate tables that you can search for the best CD rates in your zip code. Search for CD Rates.

Ally Bank has lowered their CD Rates, bowing to pressure from the American Bankers Association and the FDIC. Ally was offering some of the best CD rates around recently. Their 12 month certificate of deposit had a yield of 2.80 percent until today, the bank lowered it to an annual percentage yield of 2.48 percent. The new rate and yield is still one of the highest CD rates around with the national average this week for a 12 month CD is 1.39 percent.

Ally Bank’s no penalty 9 month CD has also been lowered - the annual percentage rate is now 2.27 percent, down from 2.47 percent, with a new annual percentage yield of 2.30 percent, down from 2.50 percent.

Depositors who use a certificate of deposit as a safe investment option are going to lose out, not only because Ally Bank has lowered their bank CD rates, now other banks will feel less pressure to raise their CD rates to a level to compete with Ally.

I wonder if the ABA will be satisfied with the lowered rates since Ally Bank is still offering some of the top CD rates around. Their 5-year CD still yields more than one percent over the national average rate for a 5-year CD and their 3-month CD yield is still double the national average.