bank rates

Amex Pulls Back From Top 1-Year CD Rates

American Express Bank is such a tease.

Although it’s been popping up in our rankings of the best CD rates since last summer, it just can’t seem to go all the way.The online bank owned by the upscale credit card company often gets close, but never reaches, the top of our rankings of the best CD rates.

Every time the upscale credit card company’s online bank comes close to offering the top CD rate in the country it pulls back.

Earlier this month American Express was paying 1.30% APY on 12-month CDs, right behind the 1.41% APY being offered by Bank of Internet and Melrose Credit Union.

But the bank cut its rate to 0.90% APY this week and slid out of our rankings of the best nationally available deals.

How frustrating.

The next-best nationally available 1-year CD rates are now:

1.40% APY with a $500 minimum deposit from Ascencia, the online division of PBI Bank in Louisville, Ky.

1.35% APY with a $5,000 minimum deposit from Colorado Federal Savings Bank in Greenwood Village, Colo.

1.30% APY with a $2,500 minimum deposit from Discover Bank, owned by the credit card company.

1.30% APY with no minimum deposit required from Sallie Mae Bank, owned by the big student loan lender.

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

Bank of Internet, an online bank based in San Diego, requires a $1,000 minimum deposit, while Melrose insists on $5,000.

Melrose is one of the few credit unions that qualify for our rankings because its unique charter allows anyone to join, regardless of where they live or work.

See how these returns compare with best CD rates from scores of other banks in our database.

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  1. Kathy O'Gorman said:
    on January 30th at 12:04 pm

    You can still get this rate from Discover Bank as of Jan. 30, but the others have dropped.