2011 Rising-rate CD survey
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Online CDs: the road to higher yield?

Start with Internet banks
2 of 7
Start with Internet banks

Cyber banks such as Ally and Bank of Internet USA offered some of the highest national CD rates in the nation early in the year.

But that's not all. Ally has wide-ranging CD types, such as high-yield CDs and no-penalty CDs, and even online CDs for which you can raise your rate during its term. "We do have cost advantages as an online bank," says Ann Bellinger, U.S. deposits product executive at Ally Financial in Charlotte, N.C. "So we can pass them on to customers."

There's also an Ally 10-day, best-rate guarantee when you open or renew an online CD. During that window of time, you're given the highest rates available from Ally during the period.

Hopwood says your own community bank is also a good starting point. "Some banks pay better rates online than in the branch, except for the bigger-name banks," he says.




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