American Express Bank now offers a couple of personal investment online banking products. Their highest CD rates are on a 2 year/24 month certificate of deposit with 2.00% APY interest.

AMEX Bank also has a variable interest rate “high yield’ savings account that currently earns a generous 1.50% APY. While this bank rate is subject to change it is defintely a competative rate. Capital One direct banking (online only) actually has higher savings rates at 1.55% APY but $2,500 minimum average daily balance must be maintained to earn that interest rate. Also the first twenty five hundred dollars in the account do not earn any interest at all: 0%. American Express pays interest on the entire bank account balance.

UFB Direct has the best CD rates for 1 year term length certificates at 1.8% annual percentage yield. That’s an interest rate of 1.78%. UFBDirect also offers customers the opportunity to earn airline miles with their Mileage Checking Account and Mileage Savings Accounts.

Centennial Bank has amazing certificate of deposit rates at 2.320 % annual percentage yield on a 2 year CD. There is a $10,000 dollar minimum deposit needed to receive this great interest rate. 60 month CDs (5 year CD) are offered at a high 3.00 % annual percentage rate.

Call Centennial Bank at 800 251-0705 ext. 103 to open up a new account.

Open an online savings account at Capital One Bank and get a 2.01% annual percentage yield (APY) on balances of $10,000 or more. There are no fees, easy online transfers to and from existing accounts and since the FDIC deposit insurance has increased, you can safely deposit up to $250,000 ($500,000 for joint accounts) until December 31, 2009. This is one of the highest savings rates in the nation at the moment.

If you are looking for an 18 month certificate of deposit then get the best CD rates at State Farm Bank. They are offering an especially high rate of 2.67% APR, 2.71% APY on 18 month C.D.s. This special term CD is not available online. You must call State Farm Bank at 1-877-734-2265 or contact a State Farm agent.

HSBC Direct has the best CD rates on 9 month certificates of deposit. HSBCDirect 9month CD’s will earn 2.05% APY interest. The minimum deposit requirement is only one dollar! HSBC Direct also offers online savings accounts, credit cards, and online payment accounts.

HSBC Direct is a solid financial institution since it is the online division of HSBC Bank USA, N.A. and they are FDIC insured. HSBC Bank has a worldwide presence of over 10,000 branches.

Is this the return of little guy?

Big corporations are cutting costs where ever they can. Stores are closing (Virgin Megastore in downtown San Francisco has been a landmark for years and they’re going out of business.) With the current recession layoffs are rampant, common, and inevitable. What will all of these unemployed people do? Hopefully they’ll tap into their skillset and open up businesses of their own.

Rents will go down since there will be many vacancies. Locals might become loyal to these new small businesses. What has the man done for you lately anyways?

Provident CU has great CD interest rates for 12 month fixed term certificates of deposit. It will take one thousand dollars to open an online CD with ProvidentCU. Money invested in this C D is fully insured by the U.S. Federal Government through the National Credit Union Administration.

Provident Credit Union reserves the right to charge a penalty for early withdrawal from the CD account. They provide secure online access to account holders.

Provident CU has local branches in the San Francisco Bay Area. Here’s a list of their branches:

• Belmont
• Daly City
• Eureka
• Folsom
• Hayward
• Los Gatos
• Menlo Park
• Millbrae
• Monterey
• Oakland (Airport)
• Redwood City
• Redwood Shores
• San Francisco (Financial District)
• San Francisco (Federal Building)
• San Jose
• San Mateo
• San Ramon
• Walnut Creek

GMAC Bank has the best CD rates for 12 month CDs and 3 year certificates of deposit.

• 12 mo CD rates: 2.85% APY
• 3 yr CD rates: 3.00% Annual Percentage Yield

There is a five hundred dollar minimum deposit requirement and there is a penalty for early withdrawal.
GMAC Bank is the online banking division of GMAC Financial Services, an automotive lending institution.

GMACBank is FDIC insured.

Discover Bank has best CD rates on 3 year CDs and 4 year CDs.

• Three year CD interest rate: 3.20% APR | 3.25% APY
• Four year CD interest rate: 3.40% APR | 3.45% APY
• Minimum Deposit: $2500

With these high CD rates the minimum deposit of $2500 in a 3 year CD would earn about $251 dollars in interest and a 4 year CD would earn about $363 dollars in interest. This certificate of deposit is a risk free investment since Discover Bank is FDIC insured. An early withdrawal penalty applies if withdrawal is made before CD maturity.

Discover Bank has been in business for over 95 years. They’re well known for their credit cards since they give very generous cash rewards. There is also a dedicated Discover gas credit card that earns 5% cash back at any gas station plus cash back for regular purchases.

New South Federal Bank has Certificates of Deposit with maturity terms of 30 days to 5 years. Here is a comprehensive list of all of their current CD rates:

30 days CD rates: 1.24% APR | 1.25% APY
60 days CD rates: 1.49% APR | 1.50% APY
3 months CD rates: 1.99% APR | 2.00% APY
6 months CD rates: 2.48% APR | 2.50% APY
12 months CD rates: 2.76% APR | 2.80% APY
18 months CD rates: 2.76% APR | 2.80% APY
24 months CD rates: 2.76% APR | 2.80% APY
30 months CD rates: 2.76% APR | 2.80% APY
3 years CD rates: 2.76% APR | 2.80% APY
5 years CD rates: 2.96% APR | 3.00% APY

New South Federal Savings Bank only requires 1000 bucks to open a new certificate of deposit so why not open one online today? In addition to their investment banking products New South Federal Savings Bank also provides consumer credit in the form of home mortgage loans and automobile loans.

Bank of America is offering high yield CDs from $5000 to $500000 with a CD rate of 1.85% APY for 7 months. This interest rate is valid in California and may vary by geographic region.

BofA also has no risk 9 month CDs with a lower annual percentage yield of 1.75%. There is a penalty for early withdrawal after the first 6 days of opening this CD account but it’s waived if the money is reinvested into another Bank of America deposit account. These certificates of deposit earn a lower CD rate for a longer term since there is some degree of protection against withdrawal before CD maturity.

B of A has a large presence in the United States with 4955 places to access money (ATMs and local bank branches) in California alone.

Capital One Online Bank has high CD rates for 2 yr CD’s at 3.0% APY. The minimum for this certificate of deposit is $5,000. Capital One Direct Banking also has top jumbo CD rates for 2 year CDs at 3.1% APY. Jumbo CD rates require $100,000 to open a new CD account.

CapitalOne also offers best business money market account interest rates at 1.75% APY. Business owners can have easy access to their money (via checks and online electronic transfers) and they can also earn interest on the funds sitting in the business money market account. The minimum to open this bus money mkt account is only $1. One important note from the Capital One website:

Business Money Market Accounts have different rules for withdrawing funds than regular checking accounts. Youre allowed up to six transfers or withdrawals each statement cycle, three of which may be checks written to a third party.

So as long as you’re ok with those terms then why not make some extra money?

Higher Interest Rates – The difference can be massive: sometimes as much as 3-5%.
24 Hour Online Account Access – Transfer funds and view your account details anytime, anywhere.
Diversify Risk – Open additional accounts with different financial institutions to enjoy additional FDIC coverage.
Save Money – Instead of spending it, save it for a rainy day.
Make Money – Consider opening an online savings account as investment in your future. You will be earning a return on your investment while keeping your money safe.

Transfer Time – It can take a few days to transfer money from your external account to your online bank account and vice versa.
Security – Even though online banks use the highest online security standards, you are transmitting sensitive information over the Internet. If your username and password are stolen someone could have access to your account information. Be aware of phishing and scams to protect yourself.

Igobanking online bank has high CD rates at 3.25% APY for 24 month certificates of deposit. A thousand bucks is required to get started. Don’t have enough for the minimum deposit? iGObanking.com also offers other investment accounts such as online savings accounts and online checking accounts with a one dollar initial deposit requirement. The FDIC backs up investments at iGObanking for up to $250,000 per account holder.

Traditional brick and mortar banks have costs associated with running their business. Labor and rent is expensive so it’s difficult for traditional banks to offer high savings rates to their customers. Online bank accounts can be accessed anytime without the assistance of a teller. Cost savings can be passed on to the investor in the form of higher interest rates.

Money market investment products are offered by many online banks. Banks use the money invested in market accounts to procure shortterm debt securities offered by the public corps, major banks, and products offered the federal government such as T-Bills (treasury bills.) These investments are generally low risk and the interest rates offered in money market accounts reflect this lower risk factor. Higher returns can be obtained by investing in riskier products.

FDIC Insurance

Money market accounts can be FDIC insured if the bank is a participating member of the Federal Deposit Insurance Corporation. The FDIC has a search tool listed on their website.

Electronic Transactions

Check with the online bank and read the terms and conditions. Online savings accounts are similar to online money market accounts since both investment products can utilize electronic transfers. Checks can also be written to access money but there may be a limit. Etrade only allows three check transactions per month.

Account Minimums and Fees

Most banks have different terms and conditions so make sure to identify:

• Opening Account Minimum Balance(this can be from $1 to $100000)
• Monthly Minimum Balance (a fee may be charged if the minimum monthly average is not met-eTrade charges $10/month if the minimum average monthly balance is at least $1000)
• ATM Fees (some banks will refund their own ATM fees-a fee may still be charged by the bank or company of the ATM that is being utilized for the transaction)
• Check Printing Fees

Read the fine print before signing up.

How much money can you make on a deposit depending on the CD rate? This CD calculator from BestRateCDs.com can help you figure out which bank to choose when opening a new certificate of deposit. Enter in your CD annual percentage rate (APR) or CD annual percentage yield (APY) along with how many months it will take for the CD to mature and the amount of your deposit and get back how much interest will have earned.

UmbrellaBank.com has high 1 year CD rates at 3.500% APY! This means that for every $1000 that is deposited (the minimum CD deposit required by UmbrellaBank) you will earn about $35 in interest.

The fine print:
The certificate of deposit interest rate for their 1 yr CD is actually 3.440% APR but when taking the power of compounding interest into consideration the effective annual percentage yield is 3.5% so the net gain for each 1000 invested is $35.

Earn 2.20% APY on 6 month CDs at eloan.  E Loan’s minimum deposit is $10000.

When your certificate of deposit matures you have a couple of options. You can take your money and re invest it into another CD. You can put your money in another investment. You can also spend your money (also known as “stimulating the economy”). Many online banks will set your CD to automatically renew at the end of its term. This is good if you don’t really care about obtaining the highest certificate of deposit rate at the time but since banks offer different CD rates the odds are that you won’t be getting the best CD rates available. Check with several financial institutions and get the highest interest APY.

Laddering your certificates of deposit can yield higher return on your investment while also allowing your money to be somewhat more liquid. You could put all your money into one CD, however CD laddering involves breaking up your investment into smaller chunks and purchasing several CDs instead of 1.

Assuming high CD rates exist at the time, one can purchase several CDs at varying lengths so there is constantly one CD maturing. Example: Buy 1 certificate of deposit at 3 months, one at 6 months, and one at 1 year. Then when the 3 month CD matures, reinvest the money that you put in along with the interest that you earned into a 1 yr cd. When the 6 month CD matures, also reinvest it into a 1 year CD. Then when the 1 year CD matures, again reinvest it into another 1 yr CD. As long as CDrates stay high then you will be making more money than purchasing one CD at a locked in rate. With this method you also have access to your money since there is always one CD maturing.

Make sure that you can live without this money since you can be penalized for early withdrawal of a CD (this is quite common for most banks).

High interest rates on CDs can yield more return on investment. Search for interest rate charts on blogs and compare CD interest rates. Investment bank CDs pay you interest based on the APY or Annual Percentage Yield. Some banks offer high interest rates while others offer low interest rates. Certificates of Deposit are investment products that banks offer to their customers so the bank can use the money to lend out to make more money on interest from mortgage loans and other loans offered by the bank.

The internet is an invaluable tool when making CD interest rate comparisons. Internet banking rates depend on the prime rate and the bank’s forecast on the bank prime interest rate. Market rates can change daily and going to a bank’s website will get you the most current CD rates available.

Save your Money

Opening a certificate of deposit with a bank that is FDIC insured has virtually no risk since the US Government is providing insurance for your investment. CD rates have historically been higher than online bank savings rates however the US Economy is in a recession and the future of banking is uncertain. Investing in CDs is a safe way to make money with your money.