bank rates

Leading 3-Month CD Rates Back Above 1%

BankDirect has jumped to the top of our rankings of the best 3-month CD rates — and pushed the top return back above 1%.

BankDirect  has jumped to the top of our rankings of the best 3-month CD rates -- and pushed the top return back above 1%. The online division of Texas Capital Bank, which has seven branches in all of the state’s major cities, just raised its rate to 1.01% APY with a minimum deposit of $10,000.

We don’t get to write about banks raising rates very often, so kudos to the Texas Capital bankers making their Bankaholic debut today.

They displace Goldwater Bank in Scottsdale, Ariz., which had offered the top nationally available 3-month CD rates by paying 0.85% APY with the same hefty $10,000 minimum deposit.

The next best returns on 3-month certificates of deposit are:

0.80% APY with a $10,000 minimum deposit from Virtual Bank, the online division of Lydian Private Bank in Palm Beach Gardens, Fla.

0.80% APY with a $2,500 minimum deposit from Woodlands Commercial Bank, on online bank in Salt Lake City that primarily loans to corporations and was formerly known as Lehman Brothers Commercial Bank.

0.77% APY with a $3,000 minimum deposit from NewDominion Bank, a predominantly online bank with branches in Charlotte and Mooresville, N.C.

All of the banks in our rankings allow savers to buy CDs over the Internet with no restrictions on where they must live or work.

Click here to compare these deals with the best CD rates from dozens of other banks in our database.

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Comments (6)
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6 Existing Comments
  1. CrankySaver said:
    on October 4th at 04:35 pm

    Don’t miss any of the new posts on everything from the economy to the banking industry’s latest tricks over on our Personal Finance Blog. You can always reach it by clicking on the “Finance” tab at the top of every page.

  2. Larry Kreitman said:
    on October 4th at 04:58 pm

    Don’t see the big deal with a 1% – 3month CD. Suntrust Bank in my Clearwater, FL area has been offering 1% to 1.4% on money market accounts for several weeks now. Currently it’s at 1.2%……and you don’t have to tie up your money for 3 months if a better offer comes along.

  3. John said:
    on October 4th at 06:46 pm

    Bankdirects site doesn’t show this rate, are you making this up? I researched this and tried to find what you were talking about.. how about providing links to the actual rates?

  4. DealMaven said:
    on October 5th at 08:53 am

    The praise for BankDirect was short-lived. The 1.01% APY was slashed to 0.40% just hours after the post.

    We actually talked to them late Monday afternoon, and not only did they verify the rate (with no indication it was about to change), but they seemed rather proud of it.

    Unfortunately, we trusted them. Lesson learned.

  5. hallmonitor999 said:
    on October 5th at 10:35 am

    i bet they did that so they would get free advertising over night and then changed it in the morning. very slimy if you ask me!

  6. allidaki said:
    on October 5th at 11:50 pm

    Duh why put money in these banks/ The puny interest paid might nudge you into another tax bracket.. You lose. Put your cash under the bed or the first rosebush bank..Your interest will be paid when you buy things for cash at 50% off…The system is failing make no mistake about it…The only steps to save it would be a “public employment tax” and the legalization of; and gov’t control of drugs.Washington is a Ponzi scheme as anyone should know. government exists to serve itself……