bank rates

Tumultuous 2-Year CD Rates Settle Down

Two weeks ago we were bemoaning the turbulence at the top of our rankings of the best 24-month CD rates.

Since then the dust has settled. The Bank of Internet, an online bank based in San Diego, still holds the top spot, offering 1.79% APY with a $1,000 minimum deposit.Bank of Internet, an online bank based in San Diego, still holds the stop spot, paying 1.79% APY.

Melrose Credit Union continues to nip at its heels, offering 1.76% APY with a minimum deposit of $5,000.

A bunch of banks remain right behind the leaders, paying 1.75% APY. But two weeks ago there were seven. Now there are only four after American Express Bank, Nationwide Bank and Colorado Federal Savings Bank cut their rates.

The banks that continue to offer 1.75% APY on nationally available 2-year CDs are:

Acacia Federal Savings Bank, the online banking subsidiary of the Acacia Life Insurance Company, Falls Church, Va., with a minimum deposit of $500.

Discover Bank, the online bank owned by the credit card company, with a minimum deposit of $2,500.

iGObanking, the online division of Flushing Savings Bank in New York, with a minimum deposit of $1,000.

H&R Block Bank, owned by the tax preparation company, with a minimum deposit of $250.

For all practical purposes, these banks are offering the same deal. The small difference in rates means you’ll earn virtually the same amount of interest over the term of the CD.

But you’ll earn more than twice as much as you would with an average 24-month CD, which is now paying 0.86% APY. And these CDs are available online, to savers in all 50 states.

New York-based Melrose Credit Union is one of the few credit union we consider for our rankings because its unusual open charter allows all U.S. residents to join buy certificates of deposit, no matter where they live or work. Membership only costs $1, although you’ll also be required to hold at least $25 in a savings account.

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

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Comments (3)
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3 Existing Comments
  1. ambroise said:
    on October 7th at 07:43 pm

    Bank of Internet is completely incompetent. No rate is high enough to warrant dealing with those clowns.

  2. Ray-Gunner said:
    on October 8th at 10:44 am

    Uh-oh. What happened ambroise?

  3. DealMaven said:
    on October 15th at 11:07 am

    On Wednesday Acacia Bank lowered its CD rate to 1.65% from 1.75%, taking it out of the rankings. But the other rates listed are still correct.

    To check the top rates of five additional terms, take at look at the CD Rates Leaderboard For October 14.