bank rates

E-Loan Wades Into 1- And 2-Year CD Fray

After shaking up its rates 10 days ago to offer the top nationally available 36- and 60-month CDs, E-Loan has done it again to lead two other terms.

Raising its 24-month yield to 1.52% APY, the online bank tops our CD Rates Leaderboard just one day after previous leader Silvergate Bank reduced its own 1.52% yield to 1.46% APY.

E-Loan also boosted its 1-year return to 1.25% APY, which puts it in a four-way tie with co-leaders CIT Bank, Sallie Mae Bank and Synchrony Bank.

Raising both of these to precisely the top rate as of two days ago – when E-Loan was already co-leading the 36- and 60-month terms – seems to indicate an aim to share top billing across multiple terms.

But then yesterday Silvergate pushed E-Loan and co-leader EverBank aside by increasing the top 36-month lead rate by a mere hundredth of a percentage point.

At the same time, Silvergate lowered its 24-month return to 1.46% APY, putting E-Loan’s new rate alone at the top.

This is all just the latest installment in a fast-moving pattern we’ve been seeing for the last six or seven weeks, where a small handful of players – particularly EverBank, Silvergate and now E-Loan – are maneuvering to offer the best return (and capture the marketing value it creates) while making only miniscule increases to overall rates.

We’d of course prefer improvements of real substance, but perhaps we’ll be left waiting for those until the Federal Reserve finally raises rates, hopefully this fall or early winter.

E-Loan is an online subsidiary of Banco Popular North America, the mainland operation of Puerto Rico’s largest bank, and requires a $10,000 minimum on its certificates of deposit.

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