bank rates

Bank Of America Trims Its Skinny CD Rates

The great majority of Bank of America's CD rates are below average, and its specials are the only exceptions.Bank of America has cut its CD rates again.

Even its “featured CD,” a 12-month online-only offering has dropped, paying just 0.45% APY with a $10,000 minimum deposit, compared to 0.50% APY mid-summer.

Still, and sadly, that’s good enough to beat the average annual yield of 0.31% that large banks and thrifts are currently offering for 12-month CDs.

Not that we’re recommending savers take advantage of a rate like this, when there are better rates to be had on our CD Rates Leaderboard.

The top nationally available 12-month CD rate, from AloStar Bank of Commerce, is 1.11% APY – more than double Bank of America’s rate – and requires a significantly lower $1,000 minimum deposit.

The most significant change at this big bank with 5,900 branches has been for its 60-month CD.

Bank of America now pays just 0.75% APY for this term – a quarter of a percentage point less than what it offered when we last reviewed its rates in July.

That’s no longer close to the average annual yield for 60-month CDs, which is a record low 1.01% APY.

Sigh.

Of Bank of America’s other standard-term CD rates, only two short-term rates are above average:

3-month CD rate is 0.26% APY versus an average rate of 0.13% APY. (Leaderboard leader is 0.65% APY.)

6-month CD rate is 0.26% APY versus an average rate of 0.19% APY. (Leaderboard leader is 0.92% APY.)

12-month CD rate is 0.28% APY versus an average rate of 0.31% APY. (Leaderboard leader is 1.11% APY.)

24-month CD rate is 0.35% APY versus an average rate of 0.48% APY. (Leaderboard leader is 1.30% APY.)

36-month CD rate is 0.50% APY versus an average rate of 0.62% APY. (Leaderboard leader is 1.42% APY.)

The Bank of America website features rates for Virginia, the state it uses to open CDs for savers who live in a state without a banking center.

Check with your branch to find out the exact CD rates for your geographic area.

There definitely are better deals out there, and you’ll find them if you compare Bank of America’s returns with the best CD rates from scores of other banks in our extensive database.

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  1. Moe said:
    on September 16th at 01:08 am

    Looks and feels like banks are getting desperate. Bank of America has been my bank for many years, but instead I’m pulling all my money out and moving to Central America. I just don’t trust any bank or market anymore