bank rates

CD Rate Hikes: Best Offers Seen In Years

The best nationally available bank CDs in four different terms pay a higher yield today than they have in years.

In years.

We have big rate boosts to report today from the online divisions of two community banks – one based in New York, the other in Florida.

These rate hikes mean our CD Rates Leaderboard has new front-runners in 6-, 12-, 24- and 60-month certificates of deposit.

  • 6-month CDs: iGObanking pays 1.00% APY with a $25,000 minimum deposit.
  • 12-month CDs: CSBdirect pays 1.25% APY with a $1,000 minimum deposit.
  • 24-month CDs: CSBdirect pays 1.55% APY.
  • 60-month CDs: CSBdirect pays 2.35% APY.

iGObanking is the online division of Flushing Bank, which has 17 locations in New York. (www.igobanking.com) This bank has a habit of raising rates for a short period and then slashing the yields to below competitive levels.

UPDATE (9/5): iGObanking has already cut its 6-month CD rate. It is no longer competitive. The best nationally available bank deal once again pays 0.87% APY.

CSBdirect is the online division of Citizens State Bank, which has four branches in Madison, Perry, Steinhatchee and Gainesville, Florida. (www.csbdirect.com) This bank’s rates have been competitive since June.

Now, there are some credit union (some that are nationally available) and local bank deals that top these offers on our list of the highest CD rates. But these are the best bank offers open to all savers that we’ve seen in quite some time.

And we take it as another positive sign that certificate of deposit rates are firmly on the long road to recovery. Watch here for more rate increases as they come.

Let’s break it down.

6-month CDs

We last saw an offer on our Leaderboard that beat iGObanking’s deal on Sept. 20, 2011, the last day AloStar Bank of Commerce paid 1.05% APY. The best rate in this term fell below 1% in late 2011 and has hovered near 0.90% for the better part of two years.

We currently track nationally available rates from 20 banks. Follow the daily changes to the best 6-month CD rates on our list.

12-month CDs

More than three years have passed since we’ve seen a better deal in this term. E-Loan’s 1.26% APY offer ended on Sept. 1, 2011. CSBdirect’s offer here is a good bit better than the former lead rate in this term, 1.10% APY.

We currently track nationally available rates from 20 banks. Follow the daily changes to the best 12-month CD rates on our list.

24-month CDs

CSBdirect was the co-leader in this term prior to today, but now it pays well more than the 1.26% APY it previously offered (an offer former co-leader EverBank still makes). We last saw a better deal on Feb. 22, 2013, when a North Carolina community bank – Live Oak Bank – stopped taking deposits nationally on its 1.75% APY offer.

Oddly, the top 2-year CD now pays more than the top 3-year CD on our Leaderboard.

We currently track nationally available rates from 25 banks. Follow the daily changes to the best 24-month CD rates on our list.

60-month CDs

This term, of course, has shown the most improvement during the last year. But we’ve now reached a new peak with CSBdirect’s increased rate. The 2.35% APY offer was last eclipsed on Sept. 13, 2011, when Airbanking, the online division of Virginia’s MainStreet Bank, last paid 2.50% APY.

We currently track nationally available rates from 20 banks. Follow the daily changes to the best 60-month CD rates on our list.

Banks qualify for our rankings by imposing no restrictions on who can buy their certificates of deposit, either online or through the mail.

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


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