bank rates

New Bank Grabs Lead In 1-Year CDs

Whether it’s a direct result of the Federal Reserve’s December rate hike or not, we’ll never know. But a bank appearing in our rankings for the very first time has jumped directly into the lead for national 12-month CDs.

Main Street Bank raised its 1-year yield from 0.50% to 1.35% APY yesterday, jumping ahead of E-Loan’s 1.30% APY on our CD Rates Leaderboard of nationally available bank certificates.

With that, the Michigan-based bank has boosted the top 12-month return back to its highest point of the last four years, requiring a rewind all the way back to June 2011 to find a top rate above 1.35% APY.

It’s also the third time in nine months we’ve seen this same leading rate. Colorado Federal Savings Bank captured the top spot with that yield twice in 2015: once in April for about five weeks, and then for most of November.

We’re anxiously awaiting more increases like this in the wake of the Fed’s rate hike. But for now, it’s good to see 1-year returns at least this far above the post-recession low we endured in 2012 and 2013, when the top national yield was a paltry 1.05% APY.

Main Street Bank’s certificate of deposit requires a $500 minimum investment and is available to anyone nationwide via email, phone, mail, or a visit to one of its north suburban Detroit branches.

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