bank rates

Top Return On 1-Year CDs Falls To 1.30%

It’s déjà vu with Colorado Federal Savings Bank this morning.

Four weeks ago, the online bank boosted the top nationally available 12-month yield to its highest level in four years – 1.35% APY – mirroring an identical bump it gave our CD Rates Leaderboard back in April.

And just as it did last spring after only about a month at the top, Colorado Federal lowered its rate today to surrender the lead. It’s now paying 1.25% APY.

The move puts previous leader E-Loan back in the top spot at 1.30% APY with a $25,000 minimum deposit.

It also means E-Loan is once again paying the highest national bank yield across all five CD terms from 1 to 5 years, although it shares the lead with two other banks in its 4-year return.

Colorado Federal’s two stints at 1.35% APY were the only times any national bank had paid that much on 12-month certificates of deposit since June 2011.

Although E-Loan’s yield is still a quarter of a percentage point higher than the term’s lowest post-recession lead of 1.05% APY, a rate hike from the Federal Reserve is what’s likely to provide a more substantial and lasting improvement in 1-year returns.

The Fed’s rate-setting committee meets December 15-16, and indications are currently strong that a rate increase will be announced.

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