bank rates

Top National 6-Month CD Rate Hits 4-Year High

Lately we’ve been doing a lot of lamenting that the Federal Reserve’s December rate hike hasn’t translated into any improvements among the top national CD returns.

So today’s news is definitely refreshing.

After being anchored at 1.05% APY for the last 10 months, the top nationally available 6-month return from the banks on our CD Rates Leaderboard has been boosted to 1.10% APY.

Live Oak Bank is the new leader, and its increase raises the 6-month term’s lead to its highest point since August 2011, when it began a steep decline that bottomed out at 0.80% APY a year later.

Live Oak’s lead grab is its second rate sheet revamp in three weeks, not only raising yields, but lowering its minimum deposit to $2,500 from the $75,000 requirement it imposed last March.

Since eligibility for our Leaderboard is capped at minimums no higher than $25,000, Live Oak has not qualified for our rankings for almost a year.

MySavingsDirect was the previous leader, holding its top-billed status completely uncontested since last April.

Only last month did a second bank finally begin offering a national 6-month return above 1.00%, with AloStar Bank of Commerce paying 1.01% APY.

Today’s news falls in line with our observation that only short-term CDs are seeing any bump from the Fed’s rate hike two months ago.

One-year CDs are the other term that’s seen an elevation, while the leading 2-, 3- and 5-year returns have all moved disappointingly downward.

It seems to further corroborate that the high uncertainty surrounding when, how frequently, or even if the Fed will further raise rates in 2016 has banks watching and waiting, rather than moving – at least on long-term rate commitments.

Live Oak was founded in 2008 to provide small-business loans to underserved niche markets, and it raises money for those loans by selling online certificates of deposit to business and personal customers.

It operates a single branch in Wilmington, North Carolina.

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