HighestCDRates.biz

If you open a certificate of deposit the good news is your principal investment insured by the government. Of course as with any investment an ultra safe investment has a lower return. The highest CD rates right now on 5 year certificates of deposit pay less than 3.00%. The best CD rates on 1 year certificates of deposit are lower than 1.00%.

The good news is the standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

The FDIC insures deposits that you hold in one insured bank separately from any deposits that the you have in another separately chartered insured bank, so you can have many insured accounts. For example, if a person has a certificate of deposit at Bank 1 and has a certificate of deposit at Bank 2, the accounts would each be insured separately up to $250,000. Funds deposited in separate branches of the same insured bank are not separately insured. The same insurance applys to savings accounts and the best savings account rates are the same compared to 1 year certificates of deposit.

The FDIC provides separate insurance coverage for funds depositors may have in different categories of legal ownership on deposit accounts. Like savings accounts and certificate of deposit accounts. The FDIC refers to these different categories as “ownership categories.” This means if you have has multiple accounts may qualify for more than $250,000 in insurance coverage if the customer’s funds are deposited in.