bank rates

As CD Rates Slide, What Will Ben Say?

The one question every saver wants asked next week when Federal Reserve Chairman Ben Bernanke holds his first quarterly news conference is the one he almost certainly won’t answer.

California First National Bank became the latest CD Rates Leaderboard member to cut ratesWhen are you going to raise interest rates?

The answer (that he won’t give) is not now, according to the Wall Street Journal, which this week wrote:

“Despite internal opposition, Mr. Bernanke and his top lieutenants…have signaled they believe it is too soon to start raising rates. Though inflation is rising, they believe consumer-price increases will prove transient, as occurred in a 2008 run-up in food and energy prices.”

So savers, it appears, will be left out in the cold for some time longer, as CD rates continue to slide.

Today, California First National Bank cut its rates, dropping it from the top of our CD Rates Leaderboard for the best nationally available 3-month CD. Three banks now share the lead, offering a 0.75% APY return.

Here’s where to find all of the top CD rates:

TERM BANK RATE MIN. DEPOSIT
3-Month CDs H&R Block 0.75% APY $250
Hudson City Savings 0.75% APY $500
Nexity Bank 0.75% APY $1,000
6-Month CDs Ascencia 1.07% APY $500
Aurora Bank 1.07% APY $1,000
Nexity Bank 1.07% APY $1,000
12-Month CDs Melrose Credit Union 1.41% APY $5,000
24-Month CDs Melrose Credit Union 1.66% APY $5,000
36-Month CDs Melrose Credit Union 2.17% APY $5,000
60-Month CDs Melrose Credit Union 2.93% APY $5,000

Banks and credit unions qualify for our rankings by selling their certificates of deposit online or through the mail to savers nationwide.

Melrose is one of the few credit unions eligible for our rankings because its unique charter allows anyone to join for only $1, regardless of where they live or work. (You will also be required to hold at least $25 in a savings account.)

The banks on today’s Leaderboard are:

  • Ascencia, the online division of PBI Bank in Louisville, Ky.
  • Aurora Bank, which is based in Wilmington, Del., and has a branch in Jersey City, N.J.
  • H&R Block, which is an online bank operated by the tax preparation company with a single branch in Kansas City, Mo.
  • Hudson City Savings, which has 130 branches in New Jersey, New York and Connecticut.
  • Nexity Bank, an online bank based in Birmingham, Ala.

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

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Comments (2)
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  1. Lightrider said:
    on April 21st at 09:23 pm

    The man is like Obummer…HASN’T GOT A CLUE WHAT TO DO, NOR IT’S OUTCOME!!!

  2. Kathy at Bankaholic said:
    on April 22nd at 09:38 am

    H&R Block has dropped its 3-month rate to 0.50% as of April 22, 2011.