bank rates

Top 1-Year CD Rates Tick Down To 1.5%

Melrose Credit Union has retaken the lead in 12-month CD rates after Sallie Mae Bank dropped lowered its rate of 1.55% APY to 1.45% APY.

The New York-based credit union is paying 1.51% with a minimum deposit of $5,000.

Melrose Credit Union is back on top of our rankings  of the best 12-month CD rates.Leading the 12-month CD rankings is a familiar spot for Melrose. It held the top spot from July 1 to Aug. 26 – albeit with a far more generous return of 1.76% APY.

But higher earnings are more than we can possibly hope for with the Federal Reserve determined to keep interest rates at record lows to boost the disappointing economic recovery.

The national average yield on 12-month certificates of deposit also reached another record low this week, falling to 0.58%.

The next best nationally available 1-year CD rates are:

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

1.48% APY with a $1,000 minimum deposit from Bank of Internet, an online bank based in San Diego.

1.47% APY with a $3,000 minimum deposit from NewDominion Bank, a predominantly online bank with a couple of branches in Charlotte and Mooresville, N.C.

All of these banks and credit unions accept online applications from customers in all 50 states.

We include Melrose in our rankings because it has a unique charter that allows anyone to join for just $1, regardless of where they live or work. (You also must open a savings account with at least a $25 balance.)

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

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Comments (2)
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  1. DealMaven said:
    on September 24th at 11:35 am

    To compare the top 12-month CD rates with the best rates available on five other terms, check the CD Rates Leaderboard for September 22.

    We checked this morning and the rates are still good.

  2. Helena said:
    on September 24th at 12:08 pm

    I guess we’ll have to grovel for the crumbs for the next year or two unless something breaks loose.