bank rates

Banks Slash Top CD Rates This Week

Banks slashed returns on many of the best-paying certificates of deposit just before Labor Day, making the last week of the summer one the most dismal weeks of the summer.

We’re not talking about a few basis points here and there, we’re talking about the top, nationally-available 6-month, 12-month, 18-month and 24-month CD rates being whacked by as much as a full point.

Many banks that had been offering the best rates on short-term CDs cut their returns this week.All three banks that had been offering the best 12-month CDs dramatically lowered their yields:

United Central Bank reduced its rate from 2.25% APY to 1.25% APY.

Frontier Bank reduced its rate from 2.25% APY to 2.05% APY.

Wilshire State Bank reduced its rate from 2.15% APY to 1.75% APY.

United Central also lowered what had been the top-ranked 6-month CD rate from 2.00% APY to 1.00% APY.

Citibank pared its leading 18-month CD rate from 2.25% to 2.00%.

Frontier cut the best 24-month CD rate from 2.60% APY to 2.40% APY.

Broadway Federal Bank took an even bigger whack out of its 24-month rate, lowering it from 2.53% APY to 2.02% APY.

With the average returns on 3-month, 6-month and 12-month CDs plunging to new record lows this week, we can only wonder where and when this race to the bottom is going to end.

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