For accounts opened with a minimum deposit of $500, the following competitive rates are offered:

1.05% APY on 12 month CD
1.24% APY on 18 month CD
1.49% APY on 24 month CD
1.73% APY on 30 month CD
2.63% APY on 60 month CD

Rates are subject to change daily, so take advantage of these amazing ways to ramp-up your savings. Different rates are available for depositors willing to invest more than $100,000, or jumbo CDs. Rates agreed upon the account opening remains the same throughout the certificate term. Fees may reduce earnings and early withdrawal penalties apply. All accounts opened are federally insured up to $250,000 by the NCUA. Certificates are automatically renewed upon maturity unless instructed otherwise. Accounts are offered exclusively to General Electric Credit Union members. Membership is open to anyone who lives, works, and worships in several counties in Ohio and Kentucky, as well as employees and pensioners of General Electric Company in Greater Cincinnati as well as employees and pensioners of General Electric Company Aircraft Engine Division, among others. Check their website at https://www.gecreditunion.org for more information and membership application forms or visit any of their locations all over Kentucky and Ohio.

Certificates of Deposit in 2012 and Beyond.

If you are like most cost-conscious and saving-savvy consumers or investors, and keeping a sharp eye on the interest rates, no doubt you have witnessed the snail-like pace that characterizes the rate of change. Meanwhile, anyone investing their hard-earned funds in CDs has the relative comfort of having their rate locked in for a certain period of time, and then letting the interest rates do whatever it is they do. This ambivalence lasts as long it takes to roll the CD over, and then the rate of change is perceived as either remarkable, or as in the most recent span of years, downright appalling.

As an example, supposing you had opened a 1 year CD at the onset of 2011, you more than likely had every expectation that the rate would have increased by the following year. The premise being that the rates at the time were historically low, yet the economy was showing some signs of life. Naturally, higher interest rates would be thought to follow accordingly. Quite the opposite occurred in the early days of 2012, and in no one’s favor, and especially for depositors. Here are just a few of the ways CDs are set to evolve in the coming year.

It has certainly become quite apparent that CD interest rate have taken a dramatic nose-dive across the entire spectrum. While they were indeed low in 2011, they have continued to hold a downward trend into the new year. The FDIC’s national average tracking had 30 day CD rates at 0.14% at the end of 2010. The following year brought them even lower, to 0.10%, and represented the mildest change of 4 basis points regarding most if not all CD term lengths. And it doesn’t stop there.

What is termed the ‘spread’ between the long term and short term CD interest rates has declined also, meaning that the decrease in rates was more significant in the longer CD term lengths. In the term-length category of 3 to 5 years, the basis point drop was as much as 35 or more. This translates into there being much less incentive to investing in a longer term CD now than there was just one year ago.

The old adage of ‘bigger being better’ no longer seems to be as much of an advantage with respect to CD investment size. For the larger category of deposits, which would generally receive the higher or premium rate structure, this theoretical benefit has been eroding over the same period of time. Compared to much smaller CD deposits, the rates on much larger jumbo CD deposits in the range of $100,000 or more are only maintaining a 1 to 3 basis point edge overall. In simple terms, bigger is not much better.

Now the inflation factor comes into play, because its rate has more than doubled since 2011, having serious influence within the CD rate sphere. The inflation benchmark was pegged at 1.5% at the tail end of 2010. Taking on a long-term CD back then translated into being on the plus side of that figure, but just barely, and only if you did some clever shopping. In the 2011 scenario, it became a new ball-game, because while the rates declined for CDs, the inflation continued to rise, and spent most of the year hovering anywhere between 3 and 4%.

The inflation factor just means playing your CD options carefully, with the current state of affairs dictating that CD term length should be kept shorter because the rates are lower, and the longer-term advantage is no longer as high. The strategy boils down to acquiring CDs of shorter term length, or, rolling the dice with longer terms that carry less severe penalties for early termination. The bottom line, as always, is to do some creative comparison research to maintain whatever interest rate edge you can get for 2012.

Selecting a CD term these days is not a decision that comes easy, and it can generally take on somewhat of a rather bleak ‘why bother’ outlook. When weighing all the options, things tend to boil down to either a rock, or a hard place, if the choice left to make is nothing more dismal than a low interest rate versus a very low interest rate. While purchasing a shorter term CD is certainly coupled with winding up with a lower interest rate, the logic still indicates is may just be the smartest option in this uncertain economic atmosphere. In other words, brief is better.

The premise comes from two primary factors that drive this decision. The first is the necessity for maintaining some level of liquidity, for any number of financial reasons. If this is not a concern, either in the immediate or intermediate range of fiscal requirements, then the decision will be based on more of a roll-of-the-dice kind of financial foundation, where the current economic situation drives the interest rate choice. Either way, the present atmosphere seems to suggest that CD terms should best be kept on the short side of the measuring stick.

The Current Financial & Economic Landscape

Looking at the economy at the present time, as well as what can be seen in any forecasting models, when the CD interest rates are factored in, things still point to short term lengths being the wisest move. The basis for this is because the overall state of the economy sees to indicate an upward tilt in momentum. The Bureau of Economic Analysis put forth a bit of news stating that the country’s gross domestic product index (GDP) increased at a rate of 3% during the last three months of 2011. This figure had made a surprising jump from 1.8% in the second quarter.

Since low rates of interest are generally a reflection of a so-called ‘soft’ economy, nevertheless, the growth in the GDP seems to foretell a change may be on the horizon. On the other hand, the rate of inflation could become a problematic influence. February of 2012 saw a small rise in the inflation number, which may be further pressured by rising energy prices as the summer months get closer.

Weighing Risks vs Rewards

Next, there is a narrowing of the spread between short term length CDs and long term length CDs. The Federal Deposit Insurance Corporation (FDIC) has released statistics indicating that the interest rate across-the-board average for CDs offered 1.88% more for the 5 year CD than for the 30 day CD in the final months of 2009. By comparative contrast, that spread had decreased to only 1.05% as of the close of February of 2012. This translates into receiving a much smaller monetary reward for pledging funds for a longer period. Once again, regardless of short-term liquidity requirements, all indicators point to shorter terms for CDs at the present time.

As tough as it may seem for CD interest rates right now, accepting the low rates is not something one has to capitulate to. One strategy is to seek out low exit penalties. Naturally, this defies the rule of keeping CD terms short. However, if there is a long-term CD out there with a low enough early withdrawal penalty, then it is almost as good a strategy as having a short-term length CD, except with a slightly better interest rate. It just boils down to financial priorities, and how the interest rate plays against factors of both time and security. Regardless of the challenges ahead for CD investment strategies, some form of economic peace of mind will usually be determined by a reliance on adaptability during these troubled times in this low interest rate environment. So, shop around diligently, and keep a short CD profile is the best advice, for the long run.

Earn with the following competitive rates for a minimum deposit of $1,000:

1.10% APY on 30 month CD
2.00% APY on 36 month CD
2.25% APY on 48 month CD
2.50% APY on 60 month CD

Or through these special CD rates for deposits with a minimum of $5,000:

2.15% APY on 35 month CD
2.20% APY on 37 month CD
2.25% APY on 44 month CD

Investors can choose to receive interest either by reinvestment on current CD rates, deposit on another savings/checking account, or payment by check. CD holders also enjoy the convenience of automatic renewal at maturity. CDs are insured up to $250,000 by FDIC per investor. Rates are subject to change at any date and penalties are imposed on withdrawals made prior to maturity date. Interested depositors can walk in to any of the branches in Metairie and New Orleans, Louisiana. For online banking transactions, simply visit the bank’s website at http://www.cbtno.com.

For members interested in investing a minimum of $500, the following credit union interest rates are provided:

1.26% APY on 24 month CD
1.57% APY on 36 month CD
1.78% APY on 48 month CD
1.92% APY on 60 month CD

For deposits exceeding $10,000, these amazing rates apply:

1.31% APY on 24 month CD
1.62% APY on 36 month CD
1.83% APY on 48 month CD
2.02% APY on 60 month CD

Start investing now with a limited offer on a Bump-Up Option for 3-5 year term CD. Rates may change without prior notice. Withdrawals made before maturity date are subject to penalty charges. Membership is offered to anyone who studies, works, or lives in Yuma or La Paz County in Arizona. Establishing a membership is as easy as opening a savings account worth $25 which serves as the membership account. Another $5 one-time membership fee is paid in order to enjoy the benefits of AEA Federal Credit Union. AEA Federal Credit Union is a member of NCUA which insures your investment to up to $250,000. You can enjoy their services electronically through http://www.aeafcu.org or walk in to any of their branches in Yuma, Albertsons, Foothills, Somerton, and Parker, Arizona.

Simply open and maintain a balance of $5,000 in order to earn the following great bank interest rates:

1.05% APY on 12 month CD
1.15% APY on 18 month CD
1.25% APY on 24 month CD
1.45% APY on 36 month CD
1.66% APY on 48 month CD
1.96% APY on 60 month CD

These rates are offered for a limited time only and are subject to change anytime and without any notice. Withdrawals made before maturity date is subject to penalty. All accounts are secured up to $250,000 under FDIC. Short – term CDs are also offered to interested depositors. For more accurate rates on the day you wish to open an account, simply visit the website at http://www.metrophoenixbank.com or call (602) 346-1800.

With a minimum maintained balance of $1,000, investors can simply choose among the following outstanding rates:

1.46% APY on 24 month CD
1.46% APY on 36 month CD
1.46% APY on 48 month CD
1.97% APY on 60 month CD

Any person living, working, or attending school in New Castle County, Delaware, including their immediate family members, is eligible to join the Credit Union. A small fee of $5 is needed to open a share account which serves as the membership fee. Once a member, you can freely invest your savings. Credit Union CD Rates are subject to change without prior notice. Dividends are calculated daily and interest is compounded monthly. Penalties apply for withdrawals made prior to the CD’s maturity date except when the owner dies or is determined incompetent by the court. All accounts are not automatically renewed. Maturity notices will be given ten (10) days before and the amount at maturity will be transferred to the share account unless the owner wishes otherwise. All accounts are non-transferrable and are insured by the NCUA. Log on to their website for more information at https://www.dexsta.com or simply visit any of their branches in New Castle County, Delaware.

For deposits made with a minimum of $1,000, investors can easily choose from these remarkable credit union cd rates:

1.004% APY on 6 month CD
1.257% APY on 12 month CD
1.358% APY on 18 month CD
1.460% APY on 24 month CD
1.561% APY on 36 month CD
1.662% APY on 48 month CD
1.764% APY on 60 month CD

Rates are offered exclusively to the employees and family members of the Board of Education of the Richmond County in Georgia. Interested clients shall open a regular share account of $5.00 which plays as membership fee. Membership is permanent despite of change in career or relocation. RCT Federal Credit Union is a member of NCUA, so all accounts opened are secured and insured up to $250,000. All rates presented are subject to change without prior notice. Penalties apply to withdrawals made before the CD’s maturity date. For more information, visit the website at http://www.rctfcu.org or walk in to their location in Augusta, Georgia.

With a balance as low as $500, you can easily earn with the following competitive rates:

1.10% APY on 18 month CD
1.25% APY on 24 month CD
1.60% APY on 30 month CD
1.75% APY on 36 month CD
2.00% APY on 48 month CD
2.25% APY on 60 month CD

These wonderful deals are accurate as of the 1st of January 2012 and are subject to change anytime as per the decision of the Board of Directors. Rates are exclusively offered to US Military and Uniformed Services, Dover Downs and Bayhealth employees, members of selected groups and organizations or a family member of any member. Simply visit their website to fill up membership forms at http://www.doverfcu.com or walk in to any of their branches at Dover, New Castle, Smyrna, and Milford in Delaware.

Virtually a risk-free option, you can watch your investment bloom with the following cd interest rates:

1.04% APY on 18 month CD
1.10% APY on 24 month CD
1.25% APY on 36 month CD
1.50% APY on 48 month CD
1.70% APY on 60 month CD

Open an account with FIB and be confident with your investment because of its FDIC insurance together with high yield rates. With telephone, mobile and internet banking through the website at http://www.firstib.com, you can easily gain access to your account and monitor your investments. Early withdrawal penalties apply as well as fees may reduce your potential income. APYs published assume that you have reinvested interest earned. For interested depositors, you may open an account through internet banking by talking to their live bank representatives or visit their office in Indianapolis, IN. Monday to Friday from 7:30 AM – 5:30 PM.