The Best Interest Rates in the USA

Here’s our rundown of states that offer the best and worst rates on certificates of deposit and some of the best savings options available.

Author:: Althea Chang
Publish date:: Apr 8, 2010 7:00 AM EDT

How much you’ll earn in interest from the bank can differ from state to state, so if you’re looking to stash away some money for savings, finding out the best rates offered by banks in your area and beyond can definitely mean more money in your pocket. Here’s a look at the states with the best and worst rates for savers looking to put away some cash — with no intention of touching it for at least a year — using a 12-month certificate of deposit, or CD. Rates available at large national consumer banks, smaller banks and credit unions can vary, but we’ll look at some of the better interest rates among local banks as well according to BankingMyWay.com. However, you'll want to make sure you check with the bank for all of the details and account requirements for holding a CD. Photo Credit: jswieringa

CDs are considered one of the least risky types of investments, especially when you’re saving for the short term. They come in varying term lengths between three months and five years, and generally, the longer you invest, the higher your return. For savers who want to see earnings at regular intervals instead of in just one shot, a strategy called CD laddering can be used as well if you have the money. The amount you’ll have to put down to get a specific rate can vary, and while not everyone has this much to set aside, for simplicity’s sake, we’ll look at the interest rate you can get when you leave $10,000 untouched in a 12-month CD. Currently, the national average for that CD type is a 1.26% annual percentage yield, according to RateWatch. We’ll start with the states with the worst CD rates. Photo Credit: Anonymous Account

State Average APY: 0.67% Credit unions aren’t formed to make a profit off of savers; they exist to make saving money easier. And the Alps Federal Credit Union in Sitka, Alaska, offers a 12-month CD rate of 1.76%. That’s more than twice the state’s average, with a minimum deposit of just $500, according to BankingMyWay.com. (State APY Data provided by Rate-Watch.com) Photo Credit: woody1778a

State Average APY: 0.77% Air transportation industry workers and their families can take advantage of a credit union with one of the best CD rates in the state with the American Airlines Federal Credit Union, which offers a 1.91% APY on a deposit of $10,000. Non-airline employees can go to Darien Rowayton Bank for a 1.5% interest rate on deposits as low as $500, according to BankingMyWay.com. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 0.81% Dozens of local Rhode Island companies the RTN Federal Credit Union in Portsmouth, R.I., which offers an APY of 1.35% with a minimum deposit of $1,000, according to BankingMyWay.com. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 0.83% Vermont may be among the states with the lowest average APYs on 12-month CDs, but employees and relatives of employees at local businesses in Springfield, Vt., for example, can take advantage of great CD rates at Bryant Federal Credit Union. Members can get a rate of 1.65% on a 12-month CD with a minimum deposit of $5,000, according to BankingMyWay.com. (State APY Data provided by Rate-Watch.com) Photo Credit: Tony the misfit

State Average APY: 0.86% The Bangor Federal Credit Union may offer an APY of 1.51% on 12-month CDs with a minimum deposit of $500, according to BankingMyWay.com, but those who aren’t members of a credit union can still get great rates as well. Bar Harbor Savings & Loan Association in Bar Harbor, Maine, also offers a 1.51% interest rate on a 12-month CD with a minimum deposit of $1,000. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 0.92% Residents of the nation’s capital can compare rates at banks in surrounding states like Maryland and Virginia, and rates at some of the best banks can be considerably higher than the area’s average 0.92% APY on a 12-month CD. For example, Carter Bank & Trust in Virginia offers an APY of 2.12% with a minimum deposit of just $100. (State APY Data provided by Rate-Watch.com) Photo Credit: onecle

State Average APY: 0.94% Delta Community Credit Union, based in Salt Lake City, offers an APY of 1.65% with a minimum deposit of $1,000, according to BankingMyWay.com. For non-members, Utah Community Bank in Sandy, Utah, offers an APY of 1.57% with a minimum deposit of $500. (State APY Data provided by Rate-Watch.com) Photo Credit: ClarkProductions2008

State Average APY: 0.95%Credit unions don’t always have the best rates for savers. In Indiana, the highest APY on a 12-month CD comes from Union Savings Bank in Bloomington, which offers 2.5% on a minimum deposit of $500, according to BankingMyWay.com. Meanwhile Beacon Credit Union in Warsaw, Ind., offers 2.12% on a deposit of $10,000. (State APY Data provided by Rate-Watch.com) Photo Credit: blmurch

State Average APY: 0.96% Banks in Nevada may earn you a relatively low interest rate compared with banks across the rest of the country, but there are still a few with pretty good rates. Meadows Bank in Las Vegas offers a 1.75% APY on at least $1,000, for example, according to BankingMyWay.com. (State APY Data provided by Rate-Watch.com) Photo Credit: woody1778a

State Average APY: 0.97% Members of the Westmark Credit Union in Idaho Falls can get an APY of 1.6% with a minimum deposit of $10,000. And Sterling Savings Bank in Troy, Idaho, offers an APY of 1.56% on at least $1,000, according to BankingMyWay.com. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 1.31% Lindsborg State Bank also offers a better CD rate than a local credit union. Consumers can get a rate of 2.2% with at least $500 at Lindsborg, while Ark Valley Credit Union in Winfield, Kan., offers 2% on minimum deposits of $1,000, according to BankingMyWay.com. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 1.33% Total Choice Federal Credit Union offers a 3.27% APY to those in the Saint Charles, Saint John and Saint James Parishes of La Place, La., who deposit at least $1,000 into a 12-month CD, according to BankingMyWay.com. Among regular banks, Beauregard Federal Savings Bank of Deridder, La., offers 2.02% APY on at least $1,000. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 1.35% The Bank of Grandin in Grandin, Mo., offers an APY of 2.41% for a deposit of at least $1,000, according to BankingMyWay.com. For those with some extra cash to invest, the bank also offers jumbo CDs for those who can put down at least $50,000. For more on jumbo CD interest rates, contact a Bank of Grandin branch directly. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 1.35% In Carnegie, Okla., Anadarko Bank & Trust Company offers a 12-month CD rate of 2.12% with a minimum deposit of $1,000, according to BankingMyWay.com. But Boise City locals can get a rate that’s nearly as good: 2.028% with a $1,000 minimum deposit. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 1.38% Alabama banks may offer a fairly high interest rate over the national average for a 12-month CD, but Local Marion Bank & Trust Company in Marion, Ala., still significantly outdoes that. The bank offers an APY of 2.27% with a minimum $1,000 deposit, according to BankingMyWay.com. Not too far behind, the Peoples Bank of Greensboro, Ala., offers a rate of 2.26% on just $500. (State APY Data provided by Rate-Watch.com) Photo Credit: southernpixel

State Average APY: 1.38% Banks in the state of Tennessee may have been offering fairly high APYs, but Clarksville, Tenn.-based Cumberland Bank & Trust is attempting to steal the rest of the state’s thunder. It offers a whopping 10% back on a 12-month CD, according to BankingMyWay.com. But there’s a catch. Both the maximum and the minimum investment is $100, which means all you can get back is a ten whole dollars in interest after a year. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 1.39% Some local banks in the state of Arkansas offer better interest rates on 12-month CDs than the state average APY of 1.39%, according to BankingMyWay.com. Baxter Credit Union in Mountain Home, Ark., offers 2.5% back on as little as $50, and First National Bank in Lewisville offers 2.25% back on at least $500. (State APY Data provided by Rate-Watch.com) Photo Credit: Stu Seeger

State Average APY: 1.39% It may be the home state of Citicorp, but great CD rates are available in South Dakota even if you’re not a Citi employee. Dakota Territory Federal Credit Union in Deadwood, S.D., for example, offers a 2.68% APY on at least $500 and non-credit union members can get 2.15% on at least $1,000 at Plains Commerce Bank in Watertown, according to BankingMyWay.com. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 1.41% The average APY for a one-year CD in South Carolina may be 1.41%, but Seneca National Bank offers 2.35% back on a deposit of at least $500 after 12 months, and Oconee Federal Savings & Loan Association in Westminster earns 2.27% in interest on at least $1,000 after a year, according to BankingMyWay.com. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

State Average APY: 1.54% Georgia tops the list of states that will earn you the most interest on 12-month certificates of deposit. But 1.5% is just the middle ground. GeoVista Credit Union in Statesboro offers as much as 3% back on a deposit of at least $1,000, according to BankingMyWay.com. Outside of credit unions, Darby Bank & Trust Company in Vidalia offers its customers 2.25% back on a 12-month CD with a deposit of at least $500. (State APY Data provided by Rate-Watch.com) Photo Credit: Abhijit Tembhekar

Getting More

How much you’ll earn in interest from the bank can differ from state to state, so if you’re looking to stash away some money for savings, finding out the best rates offered by banks in your area and beyond can definitely mean more money in your pocket. Here’s a look at the states with the best and worst rates for savers looking to put away some cash — with no intention of touching it for at least a year — using a 12-month certificate of deposit, or CD. Rates available at large national consumer banks, smaller banks and credit unions can vary, but we’ll look at some of the better interest rates among local banks as well according to BankingMyWay.com. However, you'll want to make sure you check with the bank for all of the details and account requirements for holding a CD. Photo Credit: jswieringa