One of the newest additions to our rankings of banks that offer nationally available CDs has just grabbed the lead in two terms.
Bank of Baroda upped its rate sheet this morning to pay 1.30% APY on 12-month certificates and 1.70% APY on 36 months, each with a $1,000 minimum investment.
That’s enough to outdo the previous 12-month and 36-month national leads of 1.26% and 1.66% APY, respectively, from the banks on our CD Rates Leaderboard.
We discovered seven weeks ago that Bank of Baroda had made its certificates of deposit available to savers nationwide with a mail-in process.
Although Bank of Baroda is an Indian bank – that country’s second largest, with branches in 25 countries – the CDs highlighted here are offered by Bank of Baroda’s U.S. branch.
Operating in New York for more than 30 years, the U.S. Bank of Baroda is FDIC-insured just like all of the other banks we feature on Bankaholic.
In the 1-year term, Bank of Baroda’s new 1.30% yield takes us back to the same level we saw before the Federal Reserve raised interest rates in December.
Since then, the rate ascended to 1.36% APY for a time – the highest return we’d seen for the term since 2011 – but then later dropped to 1.26% APY.
The three 1.26% banks now bumped down to runner-up status are E-Loan and, interestingly, State Bank of India’s Chicago and New York operations.
State Bank of India is the only Indian bank larger than Bank of Baroda.
The story is similar in the 3-year term. Bank of Baroda’s new 1.70% lead displaces three banks paying 1.66% APY: Silvergate Bank and again, State Bank of India in Chicago and New York.
At the time of the Fed’s December rate hike, E-Loan was paying 1.85% APY on 3-year certificates. But after dropping in January, the 36-month lead has since yo-yoed between 1.75% and 1.66% APY.
As always, rates can change quickly, so be sure to check Bankrate’s extensive database of the day’s best CD rates before committing your funds to any certificate.