bank rates

Competition Heats Up For 1-Year CDs

A new leader is just one of the changes in 12-month CD rates since we last reviewed this term in late July.

AloStar Bank of Commerce ( vaulted to the top of this term last week with a tenth of a percentage point increase.

The online bank based in Birmingham, Ala., pays 1.11% APY and requires a $1,000 minimum deposit.

That’s just good enough to beat the former lead rate of 1.10% APY. Two banks offer that rate, but not the same two banks we reported last time.

Bank of Internet USA ( took the place of Doral Bank Direct, which dropped its 12-month rate to 1.01% APY.

A San Diego, Calif.-based online bank, Bank of Internet USA requires a $1,000 minimum deposit.

But CIT Bank (, the online consumer bank of CIT Group Inc., which finances small businesses and middle-market companies, has offered its 1.10% APY for a while.

This Achiever CD, which requires a $25,000 minimum deposit, allows you to raise the rate once on this CD if the rate goes up during the term as well as to add to your deposit once.

(CIT Bank also has a standard 12-month CD that pays 1.06% APY with a $1,000 minimum deposit.)

Three banks pays 1.05% APY:

Colorado Federal Savings Bank (, an online bank based in Greenwood Village, Colo., requires a $5,000 minimum deposit.

MetLife (, which is the insurance giant’s online bank, requires a $25,000 minimum deposit.

NexBank (, which is a newcomer to the CD Rates Leaderboard, is a division of NexBank Capital Inc. and has two branches in Texas, requires a $10,000 minimum deposit.

After flip-flopping a couple of times between 1.01% APY and 1.04% APY, Ally Bank (, an online bank based in Charlotte, N.C., now pays 1.04% APY and requires no minimum deposit.

The current average annual yield offered by big banks and thrifts for the 12-month term is 0.30%.

These 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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