bank rates

Competition Heats Up For 12-Month CDs

hand holding a fistful of moneyThere’s a four-way tie at the top of the 12-month term on our CD Rates Leaderboard, and we’re hoping that one bank decides to pull away from the pack soon.

After all, long-term CDs have started to make gains, whereas 12-month CD rates are no better than they were at the beginning of 2013.

The four banks offering that lead rate of 1.05% APY:

DollarSavingsDirect (www.dollarsavingsdirect.com), which is the online division of New York-based Emigrant Bank, requires a $1,000 minimum deposit.

GE Capital Bank (www.gecapitalbank.com), which is one of two online banks, each with its own FDIC insurance, that are subsidiaries of GE Capital Corp., the financial services unit of the manufacturing giant, requires a $500 minimum deposit.

GE Capital Retail Bank (www.gecrb.com), which is also a subsidiary of GE Capital Corp., requires a $25,000 minimum deposit.

The FDIC-insured Chicago branch of State Bank of India (www.sbichicago.com), India’s largest bank, which operates independently of other U.S. branches, requires a $2,500 minimum deposit.

Chart showing the top nationally available 12 month CD rates vs. the average rate.

Three banks pay 1.00% APY:

CIT Bank (www.bankoncit.com), the online consumer bank of CIT Group Inc., which finances small businesses and middle-market companies, offers an Achiever CD and allows you to raise the rate once during the term, as well as add to your deposit once, with a $25,000 minimum deposit.

Colorado Federal Savings Bank (www.coloradofederalbank.com), which is an online bank based in Greenwood Village, Colo., requires a $5,000 minimum deposit.

Salem Five Direct (www.salemfivedirect.com), the online division of Salem Five Bank, which has 23 branches just north of Boston, requires a $10,000 minimum deposit.

Nationwide Bank (www.nationwide.com), which is an online bank owned by Nationwide Mutual Insurance Company and its affiliates, pays 0.96% APY and requires a $500 minimum deposit.

Five banks pay 0.95% APY:

BAC Florida Bank (www.bacflorida.com), which has one location in south Florida and sells its products nationally through My e-BAnC, requires a $500 minimum deposit.

Doral Bank Direct (www.doralbankdirect.com), the online bank of Doral Bank, which is the leading community bank in Puerto Rico that also has five branches in northwest Florida and two in New York City, pays 0.96% APY and requires a $500 minimum deposit.

EH National Bank (www.ehnbank.com), which has a single branch in Beverly Hills, Calif., requires a $10,000 minimum deposit.

OneWest Bank (www.owb.com), which has 73 branches in Southern California, requires a $1,000 minimum deposit.

The New York branch of the State Bank of India (www.statebank.com), which operates independently of other U.S. branches, requires a $5,000 minimum deposit.

The current average annual yield offered by big banks and thrifts for the 12-month term remains 0.24%.

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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