Frederica Credit Union is offering its members a 12-month CD that pays 1.65% APY. That is one of the very best rates in the country on a 1 year CD. The average 1-year CD nationally pays 0.55% and the average 5-year CD pays 1.51% APY. Best of all, anyone can become a member of Fredrica. The minimum opening deposit is $10,000.

Most credit unions require an individual to work for a certain organization or live in a certain area before they can become a member. Frederica's field of membership includes those who have worked at Sea Island Company - The Cloister Hotel. But it also includes any person that is a member or would like to become a member of The Getting Ahead Association. This association is committed to helping individuals gain access to "the information and services you need to improve your quality of life and reduce the cost of living. Membership is open to any individual who is genuinely committed to improving their own financial well-being." The cost of membership is $5.

Once a person joins The Getting Ahead Association, they are eligible to join the following credit unions:

1st Choice Credit Union, CORE Credit Union, Credit Union of Atlanta, Credit Union of Georgia, Delta Community Credit Union, Excel Federal Credit Union, Frederica Credit Union, GEMC Federal Credit Union, Georgia United Credit Union, Georgia's Own Credit Union, Gwinnett Federal Credit Union, LGE Community Credit Union, Northwest Georgia Credit Union, Pinnacle Credit Union, and MembersFirst Credit Union.

Frederica is open to members from all across the United States and serves its members in disparate geographies via its membership in a credit union network called the Shared Branch Network. This network provides access to Frederica accounts via thousands of branches across the U.S. The bank also participates in the CU24 ATM Network, which has thousands of ATMs.

The credit union itself operates two branches in Brunswick, GA. The credit union was founded in 1966 and has $40 million in assets. One thing to be aware of is that the credit union unfortunately has an extremely high Texas Ratio of 104.15% versus the national credit union average of 10.34%. This is a strong warning sign that there may be financial problems. Learn more about the Texas Ratio. The credit union also has a net worth of 3.23%, well below the national average of 10.15%. Net worth measures difference between total assets and total liabilities. The higher the number, the better.

Frederica is NCUA insured, the credit union equivalent of FDIC insurance. That means that your money is insured up to $250,000 per person.

If you're willing to take a risk on a credit union with a less than stellar Texas ratio, then Frederica may be for you. The reality is that with NCUA insurance, the only risk is that the CU may be closed and you'll have your CD funds returned. In a worse case scenario, as long as you stay below NCUA insurance limits, you could lose the high CD rate but not your principal.

• Learn about the differences between a bank and a credit union.
• Find other great CD rates in your local area.

New - Email Rate Updates for BestCashCow Readers

Users can now register to receive the best bank rates via email every Monday. You can choose to either receive the best rates for banks across the country, or you can receive the best rates for your state. You can cancel delivery at any time and also login to change which product rates you receive for which state. This email service is free. You can register for the service here.

I hope to eventually also have the weekly rate updates go out via this email service.

Previous Weekly Rate Deals

• January 17, 2011 - Western Heritage Bank Offering 2-Year CD Paying 1.75% APY
• January 9, 2012 - Navy Federal Credit Union Offering 3.00% APY 20-Month IRA CD
• January 5, 2012 - Consumers Credit Union Offers 4.09% APY Rewards Checking Account - Nationally Available
• December 29, 2011 - Aflac Federal Credit Union Offering 2.41% APY Savings Account
• December 19, 2011 - CIT Bank and Its 1.15% APY 12-Month Achiever CD
• December 12, 2011 - Citizens State Bank of TX Offering 2.85% IRA CD
• December 5, 2011 - Digital Federal Credit Union Offering 2.86% APY CD - Nationally Available

Check back next Monday for a new bank deal. Email any deals you know about to ratedeal (at) bestcashcow.com. Feel free to also share them below. If you're a bank and have a great deal not listed on BestCashCow, register for access and add the deal to the site.

New- Remember, to receive FREE weekly emails updates with the best bank rates for your state, click here to register.

Choosing a Certificate of Deposit

Certificates of deposit or CDs are low-risk investments traditionally issued by a bank. Over the years different types of CDs have emerged offering higher interest rates, but also more risk. More options exist for investing in CDs so choosing the right CD for your needs has become more complicated. When researching the various types of CDs, it is important to be aware of certain features that pertain to every type of certificate of deposit.

Minimum Deposit

Every financial institution has it own policies regarding minimum deposits. Some banks allow a low $500, but others require $1,000, $2500 or more. You have to invest only the amount you are comfortable with. Another smart move is to only invest money that you won’t need for living expenses. Certificates of deposit are best as long-term investments.

Maturity Date

Every CD is invested for a specific period of time. The time period ranges from three months to 10 years or more. The maturity date is when this fixed period of time ends. It is important to read the disclosure statement of CDs to know the maturity date. Some depositors get a rude surprise when they realize they unknowingly signed up for a five- or ten-year CD.

Very High Interest Rates

Before investing in a CD, know what the interest rates are. Many investors shop around looking for a financial institution that offers the highest interest rates. In most situations, the long-term CD of five years or more provide the best interest rates. However, sometimes you will see rates advertised that are much higher than the average rates. Before purchasing these CDs, do your due diligence. In many cases these higher rates are offered by companies that are not members of the Federal Deposit Insurance Corporation (FDIC). This means that the money you invest is not insured if the bank should fail. Avoid any institution that does not offer insurance for your certificate of deposit. The FDIC insures bank deposits for up to $250,000. BestCashCow.com lists only CDs issues by FDIC insured banks. Most, but not all CDs and time deposits listed by credit unions on BestCashCow.com are insured by the NCUA (those credit unions not insured by the NCUA are so indicated on their overview page on BestCashCow.com).

Fixed or Variable Interest Rates

You also need to know if the CD interest rates are fixed or variable. While traditionally interest rates were fixed, certificates of deposit now provide more flexibility. With fixed interest rates you get the same rate for the duration of the investment. With variable interest rates there are several ways the rate changes. Some CDs follow a predetermined schedule of changes while others follow an index such as the Dow Johns Industrial Average. CDs with variable interest rates have more risk.

Interest Payments

Another important piece of information you need to know is when and how the financial institutions pays the interest. Some CDs pay monthly while others pay quarterly, semi-annually or annually. Banks may also send a check or use an electronic transfer. The disclosure statement provides these details.

Automatic Renewals

When choosing a CD, ask if the CD is automatically renewed on the maturity date. You also need to know whether the renewal uses the same interest rate or the current interest rate. Interest rates change frequently so you want the renewal to reflect the best rate available at the financial institution.

Early Withdrawal Penalties

If you need to withdraw the money from the CD before its maturity date, the bank or other issuing financial institution will often charge fees. Find out what the fees are and how much they are before investing. While you may think you won’t need to withdraw money early, it could happen and you should understand what the penalties are.

Certificates of deposit range from the simple to the complex these days. It is important to understand your financial goals to know which type of CD is best for your needs. Reading the disclosure statement carefully and asking question is the best way to choose a CD that reflects your risk tolerance and your long-term goals.

The average savings account rate is now paying 0.21% APY while the average online savings account rate is yielding 0.80% APY. Those looking to gain a bit of extra yield without locking in their money for too long can look to 2-year CDs. There are many 2-year CD paying in the 1.40% - 1.50% APY. I looked for rates above that and found Western Heritage Bank in New Mexico. They are offering a 24-month CD that pays 1.75% APY with a small $1,000 minimum balance.

Western Heritage has two locations in Las Cruces and Deming, New Mexico. The bank was originally founded in 2000 as Mesilla Valley Bank and changed its name to Western Heritage in 2008 after a group of investors purchased it. Western Heritage has a Texas Ratio of 20.98%, close to the national average and its assets have grown from $27 million in 2006 to $71 million today. The bank's return on equity of 5.58% shows that it is profitable, although it is not as profitable a bank as the national average. All deposits at Western Heritage are FDIC insured.

The bank also offers an attractive 60-month CD paying 2.75% APY, which is one of the highest in the nation. The bank is very community based and only takes deposits from the Las Cruces and Mesilla Valley.

Is 1.75% APY a great rate - no. But it's the best of the worst. For those that need to keep their money safe and don't want to lose principal, stashing cash in the bank may be the only option.

If you don't live in these locations and want to find the highest rates in your area, visit our local CD rates page.

New - Email Rate Updates for BestCashCow Readers

Users can now register to receive the best bank rates via email every Monday. You can choose to either receive the best rates for banks across the country, or you can receive the best rates for your state. You can cancel delivery at any time and also login to change which product rates you receive for which state. This email service is free. You can register for the service here.

I hope to eventually also have the weekly rate updates go out via this email service.

Previous Weekly Rate Deals

• January 9, 2012 - Navy Federal Credit Union Offering 3.00% APY 20-Month IRA CD
• January 5, 2012 - Consumers Credit Union Offers 4.09% APY Rewards Checking Account - Nationally Available
• December 29, 2011 - Aflac Federal Credit Union Offering 2.41% APY Savings Account
• December 19, 2011 - CIT Bank and Its 1.15% APY 12-Month Achiever CD
• December 12, 2011 - Citizens State Bank of TX Offering 2.85% IRA CD
• December 5, 2011 - Digital Federal Credit Union Offering 2.86% APY CD - Nationally Available

Check back next Monday for a new bank deal. Email any deals you know about to ratedeal (at) bestcashcow.com. Feel free to also share them below. If you're a bank and have a great deal not listed on BestCashCow, register for access and add the deal to the site.

New- Remember, to receive FREE weekly emails updates with the best bank rates for your state, click here to register.