California Banking Rates

Current CD Interest Rates in California: May 2012

When you want your money to work for you it’s time to get a certificate of deposit (CD) from a local bank or credit union. Current California CD rates are something that everyone looking to invest in a CD in the Golden State should peruse before making their final decision. After all, particularly on larger sums of money deposited into a CD, a fraction of a percentage point can make a big difference to your bottom line.

Today’s Best CD Rates in California

  • First Imperial Credit Union: 1.7% on a 24-month CD.
  • First Federal Bank of California: 1.45% on a 12-month CD.
  • F&A Federal Credit Union: 1.36% on a 24-month CD.
  • Community Trust Credit Union: 1.26% on a 24-month CD.
  • Fresno Police Department Credit Union: 1.25% on a 24-month CD.
  • Mission San Francisco Federal Credit Union: 1.25% on a 24-month CD.

Going with a California credit union to buy your certificate of deposit doesn’t just allow you to do something wiser with your money than stuffing it in a mattress. As credit unions are non-profit, community organizations you’re literally investing in the community around you by putting your money there.

It’s best to get the longest-term CD that you can. This is because the interest rates increase the longer you have the CD. For example, the average interest rate on a certificate of deposit in California by term is:

  • Six-Month CD: .3%
  • 12-Month CD: .6%
  • 24-Month CD: .61%
  • Standard Savings Account: .16%

Putting large amounts of money into a CD is therefore a generally better deal than just throwing it into a savings account. When your savings account reaches a certain amount (say, $5,000 or $10,000), take the money out of your savings account and put it into a CD. You can always withdraw money in the event of an emergency (though you will pay a penalty), and the money will work a lot better for you in the CD than a savings account.