bank rates

New Leader In 3- And 6-Month CDs Pushes Up Top Returns Morning After Fed Meeting

Less than a day after the Federal Reserve inched toward raising interest rates later this year, we have two new top returns on our CD Rates Leaderboard.

Even more amazing: They’re short-term rates, the most stagnant of all of the terms we track.

But California First National Bank has boosted its 3-month CD rate by two-tenths of a percentage point, to 0.60% APY, and its 6-month CD rate by nearly half of a percentage point, to 1.00% APY.

That moves the previous leaders in our rankings of the best nationally available CDs down to second place.

Umbrellabank continues to pay 0.51% APY on 3-month CDs. Doral Bank Direct still offers 0.82% APY on 6-month CDs.

The last time you could buy a nationally available 6-month CD that paid 1.00% APY was in September – and that deal from iGObanking lasted less than a month.

You’d have to take a time machine back to February 2013 – yes, nearly two years ago – to find a national deal paying 0.60% APY on 3-month CDs.

California First National Bank is an online bank owned by the same company that runs California First Leasing Corp., which finances all sorts of high-tech business equipment.

You can always search Bankrate’s extensive database to find all of the top national returns on 1-month to 5-year CDs.

Whether this is a reaction to the Fed’s announcement or simply a coincidence remains to be seen.

But we certainly hope that many other banks will be following CalFirst’s lead and raising rates as the Fed moves, sometime this summer or early fall, toward reversing its 6-year-old policy of holding interest rates at record lows.

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