bank rates

Sallie Mae Grabs Lead In 1-Year CD Rates

For the first time ever, Sallie Mae Bank has landed at the top of one of our rankings of the best CD rates.

The online bank owned by the big student lender has paid 1.55% with no minimum deposit on 12-month CDs ever since it began offering them this spring.The online bank owned by the big student lender has paid 1.55% with no minimum deposit on 12-month CDs ever since it began them this spring

Although that was always a good rate, it was certainly not one of the best rates at the time.

But as other banks reduced their returns this summer, Sallie Mae steadily moved up our rankings.

When Melrose Credit Union lowered its unbeatable offer of 1.76% APY to 1.51% APY on Aug. 26, it fell to second and Sallie Mae’s turn at the top had arrived.

We know many former students hate Sallie Mae and its costly college loans. But we haven’t received a single complaint about the online bank’s customer service.

The next best nationally available returns on 1-year certificates of deposit are:

1.51% APY with a $3,000 minimum deposit from NewDominion Bank, which has branches in Charlotte and Mooresville, N.C.

1.50% APY with a $500 minimum deposit from Ascencia, an online division of PBI Bank, which has 17 branches in central Kentucky.

1.50% APY with a $250 minimum deposit from H&R Block Bank, an online bank owned by the income tax preparation company.

If you’re unfamiliar with Melrose Credit Union, it has an unusual open charter that allows all U.S. residents to join for just $1, regardless of where they live or work. The minimum deposit to buy CDs is $5,000.

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

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Comments (3)
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3 Existing Comments
  1. DealMaven said:
    on August 27th at 10:04 am

    Check out the top rates on 3-month to 5-year CDs on The CD Rates Leaderboard for August 26.

    Those rates changed yesterday, but they’re still good today.

  2. CrankySaver said:
    on August 27th at 10:22 am

    The debate over the Federal Reserve’s punishing interest rate policy moves to the central bank’s annual party, I mean symposium, in Jackson Hole, Wyo., today. We have to wonder if anyone there understands the anger some of us feel when we see the bailed-out bankers rolling in profits and bonuses while we get nothing for our hard-earned savings. And I’m sure the financial industry elite will spend the next couple of days telling each other why the struggling economic recovery just couldn’t endure even a small increase in interest rates. Read more on the post The Fed Parties On As Savers Suffer on our Personal Finance Blog. You can always reach that by clicking on the “Finance” tab at the top of every page.

  3. Nick said:
    on August 30th at 04:58 pm

    Yikes, it’s almost not worth the hassle of having bank accounts anymore and worth investing in a floor safe