Monday, November 4, 2013

Greatest Certificates Of Deposit For First-Time Buyers

By Cornelius Nunev


If you're trying to find a CD, there are a number of factors to consider. Here are some of the best certificates of deposit around, with an eye toward yield and other optimistic features.

Ally Bank a great option

Voted greatest online bank by Money Magazine in Oct. 2012, Ally has a one-year CD with an annual percentage yield (APY) of 0.94 percent, compounded at the optimal every day rate. No minimum is needed to open the account, and automatic renewal can be set for when the CD reaches maturity. A CD with 5-year maturity nets 1.59 percent APY, compounded daily.

Second is Nationwide Bank

The CD goods at Nationwide are pretty amazing. In fact, you can get 1 percent APY on a one-year CD with no minimum deposit. You can get better rates with a 5-year CD at 1.80 APY. Anything over $100,000 gets an even better deal.

Look into OneWest Bank

You need at least $1,000 to open a CD for 1 year at OneWest, but you can get 1 percent APY on it. For five years, you get 1.60 APY. These are all compounded daily, so that is great.

Try Bank of Internet USA next

While not quite as popular as the other banks on this list, Bank of Internet USA has highly competitive rates due to low overhead. Its 1-year cd has 0.80 percent APY with a $1,000 minimum opening. If you can wait for five years before your CD matures, then the APY will turn into 1.60 APY. In both cases, interest is compounded daily for maximum return.

Head to EverBank

A 0.81 percent APY will be given on a 1-year CD at EverBank, though five years can get you 1.65 percent APY. The business is ranked very high for customer service, so it may be worth the required $1,500 needed to open the CD.




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