bank rates

Top 12-Month CD Rate Nears 4-Year High

After a surprisingly substantial rate increase this morning, Colorado Federal Savings Bank is offering the best nationally available return on 1-year CDs in almost four years.

The online bank’s quarter-point increase elevates the top yield on our CD Rates Leaderboard to 1.35% APY.

That’s high enough to match the top nationally available yield on 24-month certificates.

The best national deals on 1-year CDs have fallen from 1.40% APY in June 2011 to a low of 1.05% APY in 2012 and 2013.

Once the top yield dropped below 1.30% in August 2011, it never reached that level again until this February, when iGObanking offered that return for just eight days.

Which brings us to another reason we like Colorado Federal. When it sets a rate, it sticks with it.

Its previous 1-year return of 1.10% APY had been available since last July, and before that, its rate had remained unchanged for a year.

So we’re hoping that this deal won’t be a one-week wonder.

Although Colorado Federal has long been a consistent contender in our rankings, this is the first time it’s earned a top spot on our Leaderboard.

The previous leader, Synchrony Bank, continues to pay 1.23% APY and offer the second-best national deal on 1-year CDs.

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