In this economy, it's hard to think about saving a lot of money long-term. However, even just putting a little bit away is better than nothing at all. As we all know, it's extremely difficult to find good interest rates in today's market, but Astoria Federal Savings is offering a five-year CD with very competitive 2.65% APY. This CD only requires a $500 minimum deposit, so even if you only have $500 to invest, the CD will offer you the peace of mind that your small investment is safe, secure, and earning you one of the best interest rates available in the market. Interest is compounded daily, credited quarterly and also at maturity.

One of the disadvantages of CDs is that your money is tied up and you cannot access your deposit without penalties until the CD matures. Although the Astoria Federal Savings CD also does not allow you to withdraw your initial deposit without penalty, it does give you a different option: you are able to withdrawal your credited interest, without any penalty at all. Of course, you won’t have the same liquidity that you would have with a money market account, by any means, but it's nice to have the option to at least withdrawal be interested, if needed.

Astoria Federal has 85 banking offices throughout Brooklyn, Queens, Nassau, Suffolk and Westchester counties.

Internet banks have, on average, offered better rates than many brick-and-mortar banks because they are able to keep their overhead costs low. Generally, lower overhead costs means that they can offer customers a better rate of return on their money. Not only do many Internet banks offer higher APYs, many accounts also come without any monthly maintenance fees and some even offer additional free perks.

However, when you find an Internet bank offer that has a higher APY than your local bank, you should always check the fine print because that higher APY still could come with balance requirements, monthly account maintenance fees, and other stipulations that could end up eating all of the money you earn on that higher interest rate, and then some.

Take, for example, California First National Bank, otherwise known as CalFirst. Just based on the name of the bank, you would assume this entity has physical branch locations in California. The fact that this bank only has a virtual presence isn't a bad thing in itself, but minimum balance requirement and fees that come with this bank’s money market account would make you think that you're dealing with a brick-and-mortar bank with higher overhead costs. CalFirst’s Money Market account pays 1.08% APY, which isn't bad in this economy. However, interest does not compound on this account. According to the bank's Terms and Conditions page, interest is credited to your account monthly. If you close your account before interest is credited, you will not receive interest.

Additionally, you’re allowed only six withdrawals per month and each withdrawal after that will cost you $10 per withdrawal, and if your balance falls below $5,000 you'll be stuck with a $20 monthly maintenance fee ($5,000 is also the minimum amount required to open the account). This doesn't mean that you shouldn't open an account with CalFirst, it just means that you should always read the fine print and the terms and condition so that you fully know what you're getting into. Just because a bank is an Internet-only bank doesn't mean their accounts offer the best deal for your banking needs.

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Not all states are equal – at least when it comes to CD rates. Those are the findings from an analysis run by BestCashCow.com on its database of bank rates. The site analyzed its database of over 7,000 banks and 2,000,000 product rates to determine the best states to park your cash. Among the findings:

• Eight out of the top twelve states with the highest one year CD rate averages were from the central part of the United States.
• Five out of the top twelve states with the highest five year CD rate averages were from the central part of the United States.

When it comes to bank rates, the more expensive states weren’t even in the running. Financial powerhouse New York was thirty-sixth in rank for one year CDs and forty-second on the list for five year CDs while California was thirty-eight for one year CD averages and twenty-second for five year CD rates.

The rate discrepancy between the heartland the coasts may reflect several factors:

• The heartland states tend to have a higher percentage of small, community based banks that offer more competitive rates. For example, Oklahoma, the state with the most competitive 1 year CD rates has 15,828 people per small and medium-sized bank while New York 133,511 people per small and medium-sized bank.
• The heartland states are benefiting from a boom in the agricultural/commodity markets that has stimulated the economy and may have resulted in regionally higher rates. Eight of the top eleven states with the highest average rates are also in the top ten in terms of agriculture as a percentage of their economy. Soaring commodity prices may also be creating higher CD rates for consumers in those states.

It’s not just average rates that are higher. The highest rate in the country right now is 3.24% APY from West Plains Bank in Ainsworth, NE. As a comparison, the highest rate in New York State is 3.04% APY.

Below are the CD Rate Averages:

One Year CD Rate Averages

Five-year CD Averages