bank rates

New Leader Emerges In 6-Month CDs After iGObanking Ends Standout Deal

The deal iGObanking was offering on 6-month CDs was always an outlier – and you just knew it wouldn’t last long.

So, when the online division of Flushing Bank, which has 17 locations in New York, lowered its rate from 1.00% APY to 0.15% APY today, we weren’t surprised.

We’d enjoyed that return for about a month and, hey, what could we expect? Investors worried about sluggish global growth are pulling out of stocks and piling into bonds right now, which is pushing interest rates down again.

The benchmark 10-year Treasury note yield dipped below 2% on Wednesday for the first time in 16 months before rallying back up to 2.16% this morning. (More on that later.)

iGObanking’s retreat returned former leader, Doral Bank Direct to our CD Rates Leaderboard.

The online operation of Doral Bank, the leading community bank in Puerto Rico, which also has five branches in northwest Florida and two in New York City, continues to pay 0.87% APY with a $500 minimum deposit.

The same two banks also offer what is now the second-best nationally available return of 0.80% APY:

But the number of banks paying 0.70% APY has risen to five:

  • ableBanking, the online division of Northeast Bank, which has 10 branches in Maine, requires a $1,000 minimum deposit.
  • BAC Florida Bank, a community bank with one location in Coral Gables that sells its products nationally through My e-BAnC, requires a $500 minimum deposit.
  • Colorado Federal Savings Bank, an online bank based in Greenwood Village, Colorado, requires a $5,000 minimum deposit.
  • First Internet Bank of Indiana, an online bank based in Indianapolis that requires a $1,000 minimum deposit.
  • GE Capital Bank, one of two online banks that are subsidiaries of GE Capital Corp., the financial services unit of the manufacturing giant, requires a $500 minimum deposit.

All of these deals pay savers more than four times the average annual yield offered by big banks and thrifts, which has been 0.15% for 17 straight weeks.

We currently track nationally available CD rates from 21 banks. Follow the daily changes to the best 6-month CD rates.

Banks qualify for our national rankings by imposing no geographic restrictions on who can buy their certificates of deposit and offering them for sale online or through the mail.

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

St. Louis Fed Bank President James Bullard was behind today’s rise in Treasury rates.

In an interview with Bloomberg News, Bullard said the Federal Reserve should consider extending its bond-buying campaign beyond this month – an effort that pushes up bond prices and reduces yields.

“The Bullard comments were a short-term shot of adrenaline,” Chad Morganlander, a money manager at St. Louis-based Stifel Nicolaus & Co., told Bloomberg. “The U.S. economy is doing quite well, yet there’s overall concern that the euro zone is falling into the abyss.”

Indeed, data released today showed jobless claims unexpectedly dropping to their lowest levels in 14 years, while industrial production rising by the most in almost two years.

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