Certificate of Deposit: The Facts

Banks bid in live auctions for your deposits.

One of the safest investments you can make is in a certificate of deposit, or CD. There are several things to remember when searching for the best certificate of deposit for your funds.
Read more below.

Recent National Live Auction CD Rates
for March 20, 2010

Term National Avg APY* Overnight
Auction APY†
High-Yield Savings Account Rates 0.20% 1.50%
3 Month CD Rates 0.29% 1.01%
9 Month CD Rates 0.69% 1.26%
1 Year CD Rates 0.69% 1.70%
2 Year CD Rates 1.16% 2.06%

More National CD Rates

Show me CD Rates offered to people from my state:

*Source: TheStreet.com

†Overnight Auction APY is a sample rate for a nightly auction for a $50,000 deposit.

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Certificate of Deposit Facts

  • A certificate of deposit (CD) is a special type of deposit account that is held for a stated period of time. CDs generally offer a higher rate of interest than a regular savings account.
  • A fixed rate of interest is paid on the Certificate of Deposit, usually at regular intervals.
  • Certificates of Deposit are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor per insured institution, or up to $500,000 per joint account per insured institution.
  • Banks are allowed to charge a penalty for early withdrawal of the deposit. These penalties may vary widely from bank to bank.
  • A certificate of deposit is generally a low-risk investment while other investments, such as stocks, can be more volatile and are not FDIC-insured.
  • Once the Certificate of Deposit has reached maturity (meaning the agreed-upon length of the CD has come to an end), the depositor has the option of withdrawing the money or "rolling it over" into a new CD, allowing the interest earned to compound further.

Get a Great Certificate of Deposit Rate

MoneyAisle is a completely new and innovative way to get a great rate on your Certificate of Deposit. Banks and credit unions battle it out in live auctions for your money, getting you the best rate available in our system at the auction's end.

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Certificate of Deposit Rates