bank rates

Earn Top 6- And 24-Month CD Rates From Alostar Bank of Commerce

Our CD Rates Leaderboard has seen action in both directions this morning.

First, the happy glimmers.

Savers can now go to more than one bank for the top nationally available return on both 6-month and 24-month CDs and can earn virtually the top 12-month yield with a far lower minimum than they could yesterday.

AloStar Bank of Commerce is today’s good-news bank, upping three returns on its rate sheet this morning:

  • 6-month raised from 1.01% to 1.05% APY.
  • 12-month raised from 1.26% to 1.35% APY.
  • 24-month raised from 1.46% to 1.55% APY.

AloStar’s new 6-month yield is enough to tie longtime leader MySavingsDirect, which has offered the top national bank yield almost uncontested for the past year, save two weeks in February when Live Oak Bank briefly offered 1.10% APY.

An online bank out of Birmingham, Alabama, AloStar is now the 24-month co-leader as well. Sharing the top spot with iGObanking – which has led for about two weeks – AloStar’s 1.55% APY is the highest nationally available return any bank has paid over almost five years.

With its 12-month rate increase to 1.35%, AloStar jumps only to second, keeping Country Bank at the top with 1.36% APY. But with AloStar’s minimum deposit set at $1,000 – versus $25,000 for Country Bank – AloStar offers the highest national rate for modest investments.

As we said, though, there’s also a downer in today’s news, with the top nationally available 48-month rate suffering yet another blow.

After less than a month leading the term at 1.91% APY, KS StateBank has dropped into a shared lead with previous runner-up Nationwide Bank, both paying 1.85% APY and requiring just a $500 minimum.

When we first started tracking nationally available 48-month rates in August, the top yield was 2.00% APY.

But since mid February, it’s declined to 1.87%, then bumped up a tad to 1.91% and has now dropped further to 1.85% APY.

KS StateBank also lowered its previously second-ranked 60-month return from 2.15% to 2.10% APY today.

This continues the story arc we’ve been seeing of long-term certificate of deposit yields dropping repeatedly since the Federal Reserve hiked rates in December, while the leading short- and mid-term yields have remained the same or increased only slightly.

The Fed’s rate-setting committee next meets in two weeks, at which point it could opt to give interest rates another small nudge. But more are betting it will be June before we see another Fed hike.

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