Does MetLife offer some of the best cd rates? We all seem to be on the hunt for the best possible rates, but we also want the institution to be solid and reputable as well. Read on to see how MetLife certificates of deposits compare to those of other banks.

Initial facts on MetLife Certificates of Deposit

All cd accounts are FDIC-insured, which means that you as an investor are protected against bank failure. MetLife high yield cd accounts have an opening deposit requirement of $2,000. If this initial requirement is more than what you have available for deposit, please consider a State Farm Bank cd or a Nova Bank cd, which only require a $500 initial deposit. Cds from Sallie Mae Bank and Ally Bank have no minimum deposit requirement and yet they boast some of the highest cd rates in the nation.  If you are interested in this cd account from MetLife, you can fill out an application online. Don’t we all love online banking! If you are worried about putting personal information into online application, you do have the option of calling in or simply printing the application from and mailing it in. Interest is compounded daily and credited monthly.

The low down on MetLife CDs interest rates

The high interest cd accounts are tiered so you will want to build up your balance as fast as you can in order to qualify for the highest interest rate. One of the best parts about MetLife APY rates is that both your balance, as well as your term length will influence the cd interest rate that you earn! Some banks only reward you for agreeing to longer terms and some even penalize you, as far as interest goes, if your balances get too high. In this case, I would say that MetLife is very investor friendly. Please view the chart below for the detailed information on what rates correspond to what account balances and terms.

(rates as at 18 oct 2010)

(rates as at 7 June 2011)

As you can see, the amount you have only influences the APY rate until you reach $25,000 and then the rates are all the same. Also, make note of the fact that your rate does not increase due to term after you hit the three year mark. Since there are penalties for withdrawing you money early, it is good to know that a term longer than three years will not give you a better APY rate. The best cd rate here appears to be a three year cd with $25,ooo deposited.

Fees attached to a MetLife CD

There is no monthly service fee attached to any online CD account offered by MetLife. In the event that you do need to withdraw money early from a cd account, you will be assessed an early withdrawal penalty. This penalty is assessed on the amount withdrawn, to the tune of 3-6 months of interest.

Summary of how MetLife CDs compare

We need to make sure that we are comparing apples to apples here. When looking at a 3 month cd MetLife rates are only competitive, if you have $25,000 invested or more; otherwise, with a three month term, you will only earn an average return.  In comparison, a Discover Bank CD will offer you almost triple the APY rate of MetLife for a slightly higher initial deposit of $2,500. A Nexity Bank CD will offer you more than triple the rate for half the initial deposit requirement. Then of course you have no initial deposit requirement offered at Ally Bank for great cd rates. The gap in rates of MetLife and other Banks seems to narrow as we go out to the five year mark but MetLife cd rates still lag behind other competitors like USAA bank.

If you are interested in what other services and products MetLife bank offers please see our MetLife Bank review.