bank rates

CD Rates Leaderboard For Dec. 5, 2013

Alabama-based AloStar Bank of Commerce has increased CD rates in two terms, both of which now top our CD Rates Leaderboard.

In total, AloStar — an online bank with a single office in Birmingham, Ala. — offers the best nationally available bank deal in three terms.

With a $1,000 minimum deposit, AloStar pays:

  • 1.10% APY on 12-month CDs (up from 1.00% APY).
  • 1.25% APY on 24-month CDs (up from 1.20% APY).

That’s good enough to lead both terms by 5 basis points each, or five one-hundredths of a percentage point.

AloStar also leads the 3-month term with a yield of 0.45%.

The increase puts the best nationally available 12- and 24-month CDs at their highest rates since October.

But the 2-year CD still pays less than what Pentagon Federal Credit Union offers, at 1.41% APY.

However, credit unions — even ones that allow savers everywhere to join — are not eligible for our Leaderboard because they almost universally add requirements that banks don’t have in order to purchase CDs. In PenFed’s case, most people will be required to pay a nominal fee to join.

Depending on how much money you have to deposit, that could have a real impact on your earning power on the first certificate you purchase.

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

Meanwhile, the AloStar boost comes on the same day another top bank cut rates across four terms.

GE Capital Bank, one of two online banks owned by the financial arm of General Electric, cut 6-month CD rates from 0.83% APY to 0.70% APY; 12-month CD rates from 1.05% APY to 1.00% APY; 24-month CD rates from 1.18% APY to 1.15% APY and 36-month CD rates from 1.35% APY to 1.30% APY.

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

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