It’s hard to imagine making much of anything on your money in two years.  Rates are so low that savings is definitely not encouraged.  In fact, the best rate that we could find for a 25-month CD was from Platinum Bank and stood at a mere 1.6%.  Now, don’t get me wrong, that is an unbelievable rate for a CD right now.  There are a few catches, however.  The most significant is that you basically need to be in Florida to take advantage.  The only way to put your money in one of these CDs is to walk into a Platinum branch.  These branches are located in the Tampa Bay area.

Right now its looking like the best CD rates for deposits 12-months and out come from Melrose Credit Union.  Melrose Credit Union, out of California, offers 1.41% on one year certificate of deposits.  The rate jumps to 1.66% for 2 years and as high as 2.93% for 5 years.  The 12-month is looking like the best offer right now.  After you factor in inflation and the likelihood of increased interest rates, the 60 month CD is not an attractive deal, even at 2.93%.  That may not keep up with inflation, let alone competitive rates over those 5 years.

What’s a strong 2-year (24 months) CD rate right now?  You’re looking at top rates of around 2 percent.  Yes, I know it sounds pathetic.  Most strong deposit earning checking accounts are still only 0.5% and most strong 1 year CDs are around 1.25%.  Although recent talk has been more hawkish from the Fed and friends, I tend to think that’s more political pandering and appeasement for the Tea Party.  The largest institution offering the 2% CD is American Express Bank, which offers the CD with no minimum deposit, which is rare among banks that are among the Certificate of deposit leaders.

Going into the month of April, we find the best rate for a CD, or certificate of deposit, at 2.25%.  At Country Bank in Massachusetts, you only need $500 to stock away some money in their bank-leading CD rate.  You can find Country Bank branches in Massachusetts.  They exist in Belchertown, Brimfield, Charlton, Four Corners, Leicester, Ludlow, Palmer, Paxton, Ware, West Brookfield, and Wilbraham.  These CDs are not available online, but they can be obtain over the phone.

Speaking of CD offers, I just noticed that IndyMac is offering some pretty attractive rates on short term CDs on its website.

IndyMac CD rates

3 Month          3.25%          3.30%
9 Month          3.92%          4.00%
10 Month        3.92%          4.00%
2 Year             4.16%          4.25%

These rates are extremely attractive when compared to the national averages and may be better than the previously mentioned OnBank offer if someone is looking for a smaller duration.