The best rates are generally offered on 'Jumbo CDs' with minimum deposits of $100,000.

Banks and credit unions that lack FDIC or NCUA insurance typically provide higher interest rates.ĬDs typically require a minimum deposit, and may offer higher rates for larger deposits.Personal CD accounts generally receive higher interest rates than business CD accounts.Smaller institutions tend to offer higher interest rates than larger ones.A longer term usually earns a higher interest rate, except in the case of an inverted yield curve (e.g., preceding a recession).A larger principal should or may receive a higher interest rate.Sometimes, financial institutions introduce CDs indexed to the stock market, bond market, or other indices.

These allow for a single readjustment of the interest rate at a time of the consumer's choosing during the term of the CD. For example, in mid-2004, interest rates were expected to rise, and many banks and credit unions began to offer CDs with a 'bump-up' feature. Fixed rates are common, but some institutions offer CDs with various forms of variable rates. In exchange for the customer depositing the money for an agreed term, institutions usually offer higher interest rates than they do on accounts that customers can withdraw from on demand-though this may not be the case in an inverted yield curve situation. In the United States, CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for banks and by the National Credit Union Administration (NCUA) for credit unions. The bank expects the CDs to be held until maturity, at which time they can be withdrawn and interest paid. CDs typically differ from savings accounts in that the CD has a specific, fixed term before money can be withdrawn without penalty and generally higher interest rates. A certificate of deposit ( CD) is a time deposit sold by banks, thrift institutions, and credit unions in the United States.

United peoples bank cd rates