This Week’s Best CD Rates on Short Term Certificates of Deposit

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My colleagues and I have been writing about the turbulence in the stock markets yesterday thanks to the Fiscal Cliff that the markets have finally decided to realize is coming. That combined with the ongoing financial issues in the European Union are driving stocks lower. We have been talking about limiting exposure to stocks and mutual funds until the Democrats and Republicans can reach a deal.

I'm not holding my breath about a deal until at least the first quarter of 2013. Why? Because we are already hearing the same from both sides so I believe we will have to fall over a cliff before anything is done. That being said I've started dumping my stock holdings and investing in deposit accounts.



I realize I'll have to deal with higher taxes since the gain in the markets but I figured I'd might as well pay higher taxes on my gains now at 15 percent, the Bush tax cut rate, instead of the new capital gains rate of 20 percent in 2013. Considering the gains we already had and the pending declines I've decided to invest in a 3 month certificate of deposit.

Searching our rate list for the best CD rates on 3 month certificates of deposit I found out that E-Loan is currently offering a 3 month rate of 0.65 percent. This rate doesn't sound that great but the average 3 month bank CD rate right now is only at 0.10 percent. I also believe the equity markets on average will fall 20 percent because of the financial cliff but also because we haven't had a healthy pull back in awhile. This will set the stage for much better returns in equities. Here is a quick list of the best 3 month CD rates and 6 month bank CD rates.

3 Month CD Rates



  • E-Loan.com Rate 0.65%

  • EverBank Rate 0.57%

  • Virtual Bank Rate 0.50%

  • AloStar Bank of Commerce Rate 0.45%

  • OneWest Bank Rate 0.45%

  • Barclays Bank Rate 0.40%

  • Ally Bank Rate 0.39%


6 Month CD Rates



  • Doral Bank Rates 0.91%

  • GiantBank.com Rates 0.80%

  • Colorado Federal Savings Bank Rates 0.80%

  • Ascencia Rates 0.78%

  • AlsoStar Bank of Commerce Rates 0.76%

  • ableBanking Rates 0.75%

  • Discover Bank Rates 0.75%

  • Ally Bank Rates 0.74%


Besides 3 month and 6 month CD rates at banks we also have list of the highest CD interest rates on other certificate of deposit terms. We also list the best jumbo CD bank rates for 1 year and 5 year jumbo certificates of deposit.
 
Author: Jason P. Jones
November 8th, 2012