Best Yankee CD (Certificate of Deposit) Rates

Are you a resident of New York? Well, now you can take advantage of higher interest rates from certificate of deposits! New York is big market for a certain certificate of deposit called the Yankee CD. The Yankee CD is typically a short term investment, but is classified into three types. Each type is used for a different purpose, and will also have varying requirements. Read this article to find out more about certificates of deposit and the so-called Yankee CD.

Compare Best Yankee CD Rates

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Certificates of Deposit
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What differentiates Yankee CDs in New York

Certificate of Deposit or CD is a perfect investment for people who wanted to put their funds in a temporary interest yielding account without losing anything. Putting it into technical terms, it is a financial instrument and product that are issued by banks, credit unions and even brokers that represent a time deposit. It has a fixed term or a maturity date. This is similar to bonds only this time, the investors are depositing the funds in a money market account. Investors will apply for an account, deposit a minimum cash amount and wait for the maturity date. It is one of the passive investments where the depositor can just merely wait for the term and withdraw the funds upon maturity.

Most certificates of deposit have fixed rates, though some CDs have variable rates. Fixed rates, as the term implies, have annual payouts that are constant. Variable rates on the other hand, allow the rates of interest to be adjusted periodically based on the market benchmarks such as stock index.

A certificate of deposit has three general classifications. Domestic CDs are the most common since they are issued within the country by a local bank, credit union and other thrift institutions. Euro CDs are those that are issued in foreign countries and whose currency is the same with that of the issuing country. The third, which will be discussed in this article, are the Foreign CDs or Yankee CDs.

Yankee Certificate of Deposit or simply Yankee CD is usually availed by large investors who are searching for low risk investments. This investment is usually found in the market of New York. The rates on a Yankee CD are also low, a reason why Yankee CDs are low-risk.

This kind of investment would make an investor's fund very secured, thus Yankee CD investors won't be losing their money. It is negotiable and has a minimum face value of $100.000. Together with these features, Yankee CDs cannot usually be cashed-in or withdrawn before the maturity date. But if investors have a dire need to withdraw the money, they can. The only downside is they have to pay a penalty.

So where do Yankee CDs come from? Yankee certificates of deposit are usually issued in New York, as mentioned before. Foreign banks with branches located in the United States, specifically New York, issue their own certificates of deposit in the US market. With that, it is a correct insight to tell that New York is a major financial market in the country.

Yankee CDs are availed of by big investors since the minimum amount is a hundred thousand dollars. Investors of this kind of instrument are very careful to not withdraw the funds. The penalty charge for withdrawing the funds can be great mostly taking away some of the earned interest revenue. Investors make sure that the funds will stay intact in the account until the maturity date arises.

ONLINE SAVINGS ACCOUNT

  • No minimum balance
  • Competitive rates, No risk

MONEY MARKET ACCOUNT

  • High rates, Access to money
  • FDIC Insured

CDs Overnight Averages

Product
Yield
+/-
Last week


3 Mo CD
0.11
-
0.11


6 Mo CD
0.17
-
0.17


1 Yr CD
0.26
-
0.26


1.5 Yr CD
0.33
-
0.33


5 Yr CD
1.02
-
1.02


CD Types


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