bank rates

Earn 1.05% With Top 6-Month CD Rates

AloStar Bank of Commerce pays this rate with a $1,000 minimum depositThe top nationally available 6-month CD rate has dropped a tenth of a percentage point since I posted about this term at the end of July.

So much for being even cautiously optimistic about the future of short-term CDs.

The current 6-month leader, AloStar Bank of Commerce (www.alostarbank.com), is paying 1.05% APY with a $1,000 minimum deposit.

That’s still better than the average annual yield large banks and thrifts are offering for 6-month CDs, a new record low of 0.24%.

But the online bank based in Birmingham, Ala., dropped its 12-month CD rate last week, a term it led for the entire month of August.

Other banks we’re keeping an eye on for the 6-month term for the CD Rates Leaderboard:

Aurora Bank (www.aurorabankfsb.com), which has branches in Wilmington, Del., and Jersey City, N.J., is offering 1.01% APY and requires a $1,000 minimum deposit.

Virtual Bank (www.virtualbank.com), which is the online division of Miami-based Sabadell United Bank, is also offering 1.01% APY and requires a $10,000 minimum deposit.

Ascencia (www.ascenciabank.com), the online division of PBI Bank in Louisville, Ky., is offering 1.00% APY and requires a $500 minimum deposit.

Colorado Federal Savings Bank (www.coloradofederalbank.com), an online bank based in Greenwood Village, Colo., is paying 0.95% APY and requires a $5,000 minimum deposit.

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

There are a number of local banks and credit unions that offer better returns on 12-month CDs. Take a look at several local CD deals we found recently.

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

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Comments (3)
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3 Existing Comments
  1. Kathy at Bankaholic said:
    on September 12th at 07:31 am

    Aurora Bank’s rate has dropped a hair to 1.005% APY, and Colorado Federal’s rate is now 0.90% APY.

  2. Kathy at Bankaholic said:
    on September 21st at 08:44 am

    Ascencia is the only bank still offering the rate quoted here. AloStar and Virtual Bank have joined Aurora and Colorado Federal with lower 6-month CD rates. AloStar’s is now 0.90% APY, and Virtual Bank’s, 0.85% APY.

  3. Kathy at Bankaholic said:
    on September 26th at 10:13 am

    Ascencia is still the only bank offering the 1.00% rate quoted here.