• Certificates of Deposit offer higher interest rates than savings accounts.to save money image by Maria Brzostowska from Fotolia.com
  
  A Certificate of Deposit (CD) is an investment vehicle in which money is deposited with a bank or thrift institution and returns a greater rate of interest than a regular savings account. Unlike other investments, CDs are insured by the federal government for up to $250,000. California's highest CD rates are typically offered by national banks.
  
  

One-year CDs

• In general, the fewer number of years your CD is carried, the lower the interest rate. As of 2010, Ally Bank offers a 1.63 simple interest rate, yielding an annual interest rate of 1.64 with interest compounded daily. There is no minimum deposit and no fees.
  
  Metlife Bank offers a 1.29 simple interest rate, providing an annual rate of 1.30 with interest compounded daily. Minimum deposit is $25,000
  
  Citibank's CD rates are 1.00 simple interest, yielding an annual interest rate of 1.01 with interest compounded daily. Minimum deposit is $500.
  
  

Two-year CDs

• Ally Bank's two-year CDs offer a 2.03 simple interest rate, yielding an annual interest rate of 2.05 with interest compounded daily. There is no minimum deposit and no fees.
  
  Metlife's CD rates are 1.83 simple interest, yielding an annual interest rate of 1.85 with interest compounded daily. Minimum deposit is $25,000.
  
  Citibank's rates are 1.14 simple interest, 1.15 annually and requires a $500 minimum deposit.
  
  

Five-year CDs

• Ally Bank CD rates are 3.10 simple interest, yielding an annual rate of 3.15 with interest compounded daily. Minimum deposit is $25,000.
  
  Citibank offers interest rates of 2.47 simple interest, yielding an annual interest rate of 2.50 with interest compounded daily and a $500 minimum deposit.
  
  Bank of America's five-year CDs have interest rates of 2.23 simple interest, an annual rate of 2.25 with interest compounded monthly and a $1,000 minimum deposit.