bank rates

The Best 12-Month CD Rates Fall To 2.05%

The top-paying 12-month CDs are barely paying 2% according to our new rankings of the best nationally available CD rates.

That’s a quarter-point less than the highest yield of 2.30% in our August rankings as returns on short-term certificates of deposit continue the decline that began with last October’s financial crisis.

The top-paying 12-month CDs are barely paying 2% according to our new rankings of the best nationally-available CD rates.

At this time last year, the average rate for a 12-month certificate of deposit was 2.73% APY — nearly three-quarters of a point more than the top-paying CD today.

The average return has fallen to 0.98% APY, the lowest since Bankrate’s weekly survey of large banks and thrifts began in 1989.

If there’s any good news in this month’s rankings it’s that five banks are offering the same top rate of 2.05% APY — 2.10% APY for California residents in one instance.

The banks are:

Frontier Bank, which has 42 branches in Washington and Oregon and requires a $500 minimum deposit.

newdominionDIRECT, a Charlotte, N.C.-based online bank that requires a $3,000 minimum deposit.

OneWest Bank, which has 33 branches in the Los Angeles area and requires a $5,000 minimum deposit.

UFB Direct which requires an $8,000 minimum deposit. CDs sold at UFBDirect are issued by Waterfield Bank, which has a couple of full-service offices in Carmel, Ind., and Germantown, Md.

First Federal Bank of California, which has 39 branches in the Los Angles area and requires a $10,000 minimum deposit. California residents can earn a 2.10% APY on the same CD, but they have to fill out a special application.

Click here to compare these deals with the best CD rates from dozens of other banks in our extensive database.

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