bank rates

New Offer Buoys Top 2-Year CD Rates

American Express Bank offers the top 24-month CD ratesTop nationally available 24-month CD rates continue to pay 1.30% APY on our CD Rates Leaderboard, but a new offer that pays less might be a better deal for some.

American Express Bank (, an online bank owned by the credit card company, leads the category. It requires no minimum opening deposit.

Not too far behind, but with perhaps a stronger offering, is CIT Bank (, the online consumer bank of CIT Group Inc., which offers financing to small businesses and middle-market companies.

Former co-leader CIT Bank dropped its 24-month rate from 1.30% APY to 1.26% APY last week, but added an Achiever CD to the term, which allows you to add money to your account and bump up the rate once during the term with a $25,000 minimum deposit.

This account protects you whether CD rates increase (the bump-up option) or decrease (the add-on option).

(CIT Bank also has a no-bells-and-whistles standard 24-month CD that pays slightly less — 1.25% APY — with a significantly lower $1,000 minimum deposit.)

Broadway Federal Bank (, which has five branches in Los Angeles and Inglewood, Calif., also offers 1.26% APY with a $500 minimum deposit.

Next up, at 1.21% APY, is Virtual Bank (, the online division of Sabadell United Bank, based in Miami, which requires a $10,000 minimum deposit.

Three banks pay 1.20% APY:

Discover Bank (, an online bank owned by the credit card company, which requires a $2,500 minimum deposit.

Nationwide Bank (, an online bank owned by Nationwide Mutual Insurance Company and its affiliates, which has a $500 minimum deposit.

USAA (, a diversified financial company based in San Antonio, which requires a $1,000 minimum deposit.

The average annual yield that large banks and thrifts are currently paying for this term rose slightly last week off the record low of 0.52% APY to 0.53% APY.

These banks qualify for our rankings by imposing no restrictions on who can buy their certificates of deposit, either online or through the mail.

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

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Comments (1)
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One Existing Comment
  1. Kathy at Bankaholic said:
    on February 5th at 12:51 pm

    Discover Bank has lowered its 2-year CD rate to 1.15% APY.