BankShout looks at this week’s top yields for short term CDs, defined as terms of three months or less. annual percentage yields are current as of Tuesday, April 13th, 2010.

Among national and Internet-based banks, Nexity Bank leads the way in annual percentage yields for short term certificates of deposit. Birmingham, Alabama-based Nexity is advertising 1.09% APY on a 3-month CD, as well as .96% APY on a 1-month CD. Both certificates require a minimum deposit of $1000, according to the bank’s website.

Of the banks surveyed by BankShout this week, only one other financial institution if offering over 1% APY on a CD term of three months or less. Excel National Bank, based out of Beverly Hills, California, has a 90-day certificate with an APY of 1.05%. Minimum deposit is $10,000. Other list-makers this week are newdominionDirect.com, at .86% APY for a 3-month CD, and Ally Bank, with .84% APY and no minimum balance for the 3-month term. American Express Bank, FSB, also has no minimum balance and is advertising its 90-day term for .60% APY.

Short term yields may not be very high, but a 1-3 month term can sometimes act as a suitable holding place for a consumer deposit. Some bank customers use a short term to earn a bit of interest while waiting for a better promotion to open up at another bank. Normally, the highest yield on a short term CD would require a “jumbo” deposit, or at least $100,000. Yet falling APYs on all savings products has narrowed the gap in yields for small and large deposits.