bank rates

Top 24-Month CD Now Pays 1.50%

A month ago, we mildly celebrated the top nationally available 2-year bank yield returning to its highest level since the summer of 2011.

Then we cheered a bit more two weeks later, when a second bank began offering the same lead return on our CD Rates Leaderboard.

Well, that celebrating has quickly come to an end as both banks have dropped their leading rates in the past few days, leaving us with a top national yield that is actually worse than what you could earn before the Federal Reserve hiked interest rates in December.

Sigh.

The latest spoilsports are iGObanking and AloStar Bank of Commerce, both of which were paying 1.55% APY.

An online operation of Flushing Bank in New York, iGObanking began offering its promotion at the end of March, while AloStar – a Birmingham, Alabama-based online bank – debuted its 1.55% certificate on April 12.

It was a 24-month rate we hadn’t seen since January 2015, when Florida-based Citizens State Bank stopped offering its certificates of deposit nationwide.

It was also the highest national return across almost five years, aside from a short-lived promotion by Live Oak Bank that paid 1.75% for 12 days in February 2013.

But on Friday, AloStar reduced its yield to 1.48% APY, leaving iGObanking in the solo lead for a single business day before it lowered its rate, too (all the way down to 0.15% APY).

With both leaders giving up claim to the top spot, the best nationally available bank return has now sunk to 1.50% APY, which you can earn with one of two banks:

  • E-Loan, the online portal of Popular Community Bank, which operates almost 50 branches in New York, New Jersey and south Florida. It requires a $10,000 minimum deposit.
  • Live Oak Bank, which operates mostly online with a single branch in Wilmington, North Carolina, and requires a $2,500 minimum.

It’s disappointing news that yet another major CD term now has a nationally leading rate below pre-Fed hike levels: 2-, 3-, 4- and 5-year certificates have all seen declines.

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