1-year rates on certificate of deposits continue to slide downward, as national and online financial institutions look beyond consumer deposits to other sources of funding. BankShout looks at the top 12 month CD deals, as of February 18, 2010:

Discover Bank leads the 1-year CD rates this week. Discover is offering an annual percentage yield of 1.70% on a minimum deposit of $2500. The New Castle, Delaware-based credit card company had previously been paying 1.75% APY on the same term, as recently as last month.

Also down from last month is the 1-year rate being offered by newdominionDIRECT.com. The Internet bank is now paying 1.67% APY on a minimum $3000 deposit, down from 1.92% APY back in mid-January. Giantbank.com continues the trend of downward trajectories, with a current APY of 1.61% on a 1-year CD minimum of $2500. Giantbank had been offering 1.71% on its 1-year term at the end of January.

Rounding out this week’s top BankShout rates are Ally Bank, which has no minimum deposit and a 1.60% APY on a 12-month certificate, and Aurora Bank FSB, which is also offering a 1.60% yield but with a minimum balance of $1000.

Low CD rates overall will continue to test depositors’ patience through 2010, as the Federal Reserve seems committed to keeping interest rates low. My opinion? Watch for money to flow into other “safe harbor” investments such as metals like gold and silver, and even blue-chip equities, as more customers become frustrated with the lack of return from traditional savings products.