bank rates

12-Month CD Rates Take A Beating

The top rate has fallen by more than a tenth of a percentage pointOnce steady 12-month CD rates have dropped more than a tenth of a percentage point since I last wrote about this term a little bit more than a month ago.

The 1.15% APY offered by Doral Bank Direct (www.doralbankdirect.com) is now good enough to lead the 12-month term on the CD Rates Leaderboard.

That’s lower than we’d like to see, but still significantly higher than the current average yield offered by big banks and thrifts.

That’s a record-low 0.37%.

Three banks are offering the second highest rate of 1.12% APY:

AloStar Bank of Commerce (www.alostarbank.com), an online bank based in Birmingham, Ala., which requires a $1,000 minimum deposit.

Aurora Bank (www.aurorabankfsb.com), which has branches in Wilmington, Del., and Jersey City, N.J., and requires a $1,000 minimum deposit.

Goldwater Bank (www.goldwaterbank.com), which has a single location in Scottsdale, Ariz., and requires a $5,000 minimum deposit.

Ascencia (www.ascenciabank.com), the online division of PBI Bank in Louisville, Ky., offers the next highest rate of 1.11% APY with a $500 minimum deposit.

And two banks are offering 1.10%.

Discover Bank (www.discoverbank.com), an online bank owned by the credit card company, which requires a $2,500 minimum deposit.

Sallie Mae Bank (www.salliemae.com), an online bank owned by the student lender with a single branch in Murray, Utah, which has no minimum balance requirement.

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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Comments (2)
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  1. Kathy at Bankaholic said:
    on October 17th at 07:42 am

    Aurora Bank and Goldwater Bank have dropped their 12-month rates to 1.11% APY. The other rates are still available.

  2. Kathy at Bankaholic said:
    on October 24th at 07:47 am

    Aurora Bank has dropped its rate once more, to 1.07% APY.