FirstFedDirect CD Rates

FirstFedDirect the online banking division of First Federal Bank of California is offering some of the best CD rates available. Right now, FirstFederalDirect is offering one of the highest CD rates available for a six month certificate of deposit.

The annual percentage yield on their six month CD is at 1.75 percent. The minimum opening deposit for the certificate of deposit account is $10,000. The maximum amount is $1 million. Of course the maximum amount of deposit insurance provided by the Federal Deposit Insurance Corporation is $250,00 until 2014.

FirstFedDirect also is offering a certificate of deposit ladder, or CD ladder. CD laddering is a way to maximize your returns. When using the stragey of CD laddering you open multiple CD accounts, each has a different term and maturity date. Doing this staggers the date that the certificates mature. As each certificate matures, you re-invest it back into the longest term on your ladder.

Eventually you will have all your certicate of deposits earning the highest yield because the certificates will all be in the longest period in your CD ladder but you will have certificates maturing more frequently so you’ll have access to your money if you need it, if you don’t you just keep the ladder going.