bank rates

1-Year CDs End 2013 A Bit Higher

chart going upWhile saying 12-month CD rates are finishing the year strong is a stretch, the best deal pays a bit better today than it did at the start of 2013.

But since this isn’t true of every term, we’ll slide the 12-month term into the “win” column for the year.

Barring any last-minute rate hikes (or cuts), the year-end 12-month lead rate looks to be 1.10% APY.

That’s thanks to AloStar Bank of Commerce (www.alostarbank.com), which is an online bank based in Birmingham, Ala. This bank requires a $1,000 minimum deposit.

We began January with six banks paying the top nationally available 12-month CD rate of 1.05% APY.

That’s the second-highest rate today.

chart showing the best and average 12-month cd rates

Three banks pay 1.05% APY:

DollarSavingsDirect (www.dollarsavingsdirect.com), an online division of Emigrant Bank, which has two New York-area branches, one in Manhattan and the other in suburban Ossining, N.Y., with a $1,000 minimum deposit.

GE Capital Retail Bank (www.gecrb.com), which is one of two online banks, each with its own FDIC insurance, that are subsidiaries of GE Capital Corp., the financial services unit of the manufacturing giant, with a $25,000 minimum deposit.

CIT Bank (www.bankoncit.com), the online consumer bank of CIT Group Inc., which offers financing to small businesses and middle-market companies, offers one of its Achiever CDs for the 12-month term.

With a $25,000 minimum deposit, you can raise the rate once during the term, as well as add to your deposit once.

Three other banks pay more than 1% APY. They are:

Pacific Mercantile Bank (www.pmbank.com), which has seven branches in Southern California, pays 1.02% APY and requires a $10,000 minimum deposit.

BAC Florida Bank (www.bacflorida.com), which has one location in south Florida and sells its products nationally through My e-BAnC, pays 1.01% APY and requires a $500 minimum deposit.

CapitalSource Bank (www.capitalsourcebank.com), the Los Angeles-based lender to small and middle-market businesses, which has 21 branches in central and Southern California, also pays 1.01% APY and requires a $10,000 minimum deposit.

The current average annual yield offered by big banks and thrifts for the 12-month term is 0.22% – a record low for the term.

These banks qualify for our rankings by imposing no restrictions on who can buy their certificates of deposit, either online or through the mail.

Compare these returns with the best CD rates from scores of banks in our extensive database.

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