bank rates

2-Year CDs Last Hit This Mark In February

Two banks have brought new life to 2-year CD rates.

NexBank (www.nexbank.com) debuted on the CD Rates Leaderboard – and at the top of the 24-month term – on Sept. 6.

The division of NexBank Capital Inc. has two branches in Texas and pays 1.30% APY with a $10,000 minimum deposit.

The day before, AloStar Bank of Commerce (www.alostarbank.com), which is an online bank based in Birmingham, Ala., had boosted its rate to 1.26% APY with a $1,000 minimum deposit.

The best nationally available deal hasn’t paid this much since Feb. 8.

Two banks also pay 1.25% APY:

The first, CIT Bank (www.bankoncit.com), the online consumer bank of CIT Group Inc., which finances small businesses and middle-market companies, offers one of its Achiever CDs, which allow you to add money to your account once, as well as bump up the rate once, during the term, with a $25,000 minimum deposit.

(CIT Bank also has a standard 24-month CD that pays 1.20% APY with a minimum deposit of $1,000.)

The second, Barclays (www.banking.barclaysus.com), which is the online American operation of the big British bank, requires no minimum deposit.

And two banks offer the next-best rate of 1.17% APY:

Doral Bank Direct (www.doralbankdirect.com), which is the online bank of Doral Bank, the leading community bank in Puerto Rico that also has five branches in northwest Florida and two in New York City, and requires a $1,000 minimum deposit.

MetLife (www.metlifebank.com), which is the insurance giant’s online bank, requires a $2,000 minimum deposit.

Broadway Federal Bank (www.broadwayfed.com), which has five branches in Los Angeles and Inglewood, Calif., pays 1.16% APY and requires a $500 minimum deposit.

Four banks pay 1.15% APY:

ableBanking (www.ablebanking.com), which is the online division of Northeast Bank and requires a $1,000 minimum deposit.

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

Nationwide Bank (www.nationwide.com), which is an online bank owned by Nationwide Mutual Insurance Company and its affiliates, and requires a $500 minimum deposit.

The New York branch of the State Bank of India (www.statebank.com), India’s largest bank, which has FDIC-insured branches in California, Chicago and New York, and requires a $5,000 minimum deposit.

The average annual yield that large banks and thrifts pay remains a record low 0.47% this week.

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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