bank rates

New Leaders Claim Top Spots Among 6-Month and 12-Month CDs

Yesterday, we could say three CD terms had seen their top national rate boosted since the Federal Reserve hiked interest rates in December.

Today, two of those glints of light have been squelched.

Live Oak Bank is one culprit, lowering the 1.10% APY it had been paying to lead national 6-month returns down to 1.00% APY.

North Carolina-based Live Oak debuted that yield less than two weeks ago on our CD Rates Leaderboard of the top nationally available bank certificates.

Its retreat returns top billing to previous longtime leader MySavingsDirect, paying 1.05% APY.

Today’s other blow was delivered by Main Street Bank, which had been leading the 12-month term at 1.35% APY since the start of the year. The Michigan-based bank’s new rate is just 1.05% APY.

Main Street’s retreat hands the 12-month baton to the second-place bank, which coincidentally is Live Oak at 1.30% APY. So Live Oak’s surrender of one lead today has been met with the unexpected acquisition of a different top spot.

But for savers, of course, none of this is good news.

In the two-and-a-half months since the Fed hiked rates, very little relief has come savers’ way, as they continue to suffer historically low returns across all deposit products.

Of the seven CD terms we track on our Leaderboard, only one – 3-month certificates – now stands above pre-Fed-hike levels, while the four terms from 6 months to 24 months are sitting at essentially the same level as in early December.

Most despairing is that the top national 3-, 4- and 5-year yields have all taken substantial hits since the Fed raised rates.

The Fed’s rate-setting committee next meets in two weeks. While theoretically it could give interest rates another small bump, Wall Street’s bets are against it.

Until the Fed’s announcement comes on the afternoon of March 16, we’ll all be left guessing. But for savers everywhere, you know our fingers are crossed.

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