CD Rates
Top 6-Month CD Rates Hold At 1.60%
Country Bank leapt to the top of our rankings of the best 6-month CD rates last month — and it’s still there.
The small bank with 14 branches in central Massachusetts, continues to pay 1.60% APY, with a very reasonable minimum deposit of just $500.
The downside is that you can’t open an account online. You have to call the bank at (800) 322-8233 and a representative will explain how to buy a certificate of deposit by mail.
But Country Bank has been at or near the top of our rankings for almost six months and we haven’t heard a word of complaint about the bank’s customer service.
Four other banks are offering 1.40% APY to savers in all 50 states. They are:
The Jacksonville Bank, which has five locations in northeast Florida and requires a $1,000 minimum deposit.
AmTrust Direct, whose parent company was seized by the FDIC in December and sold to New York Community Bank. It requires a $1,000 minimum deposit.
Earthstar Bank, with four branches in Philadelphia, requires a minimum deposit of $500 in new money to earn this rate.
The Palladian Private Bank, a division of The PrivateBank and Trust Co. , with 34 locations in 10 Midwestern states. A $10,000 minimum is required.
Those rates are more than four times the national average for returns on 6-month CDs, which has fallen to a record low 0.33% APY this month.
Click on our CD calculator to find the return on any certificate of deposit, regardless of size, interest rate or term.
Best 24-Month CD Rates Edge Lower
The banks are pretty much the same. But the returns are worse.
That’s the sorry story of our latest rankings of the best, nationally available 24-month CD rates.
In November our top-paying banks were offering 2-year certificates of deposit for 2.60% to 2.55% APY and you only needed a $1,000 minimum deposit to qualify for the top rate.
This month you’ll earn 2.50% to 2.30% APY and need a whopping $50,000 to qualify for the top rate.
Although that’s still twice as much as you can make with the typical 2-year CD, it’s not saying much. The average rate on these CDs plunged to a record low of 1.26% APY last week.
The best, nationally available deals on 24-month CDs are:
2.50% APY with a minimum deposit of $50,000 for “Silver CDs” from Frontier Bank, which has 50 branches in Washington and Oregon. You can also earn 2.45% with a $25,000 minimum deposit and 2.40% with a $500 minimum deposit.
2.40 APY with a minimum deposit of $1,000 from The Jacksonville Bank, with five locations in that Florida city.
2.40 APY with a minimum deposit of $1,000 from Atlantic Coast Bank, with 12 full-service branches in southeast Georgia and northeast Florida.
2.30 APY with a $5,000 minimum from Hudson City Bank with dozens of branches in New Jersey, New York and Connecticut. If you live near a Hudson City branch the minimum deposit is only $500.
Click here to compare these offers with the best CD rates from dozens of other banks in our database.
Related Posts:Frontier Alone At Top Of 2-Year CD RatesBest 24-Month CD Rates Jump to 2.60%Best 24-Month CD Rates Hold At 2.50%Hudson City Rockets Up CD Rate RankingsOne Bank Still Pays 3% On 3-Year CDs
Fed Keeps Pounding Down CD Rates
Savers struggling with record-low CD rates got no help from the Federal Reserve this week.
The Fed’s rate-setting committee renewed its pledge to keep interest rates artificially depressed for an “extended period” to ensure a strong economic recovery.
The committee acknowledged the economy has “continued to pick up” and that “deterioration in the labor market is abating” since employers are laying fewer workers off this fall.
But the Fed said it would continue to boost growth and job creation by charging commercial banks 0% to 0.25% for overnight loans.
As long as the government-controlled Fed provides commercial banks all the money they need for virtually nothing, those banks can pay a pittance for our savings.
No wonder four of the five certificates of deposit we follow fell to new record lows in Bankrate’s Dec. 16 survey of large banks and thrifts. The average annual yield for a:
3-month CD fell to 0.37% from 0.38% this week. That’s the lowest average since the survey began tracking 3-month CD rates in March 1989.
6-month CD fell to 0.51% from 0.52% — the lowest average since the survey began tracking 6-month CD rates in January 1984.
1-year CD fell to 0.82% from 0.83% — the lowest average since the survey began tracking 12-month CD rates in October 1983.
2-year CD fell to 1.26% from 1.28% — the lowest average since the survey began tracking 24-month CD rates in March 1989.
5-year CD held at 2.08% after falling for four straight weeks. The 2.08% is the lowest average rate since the survey began tracking 60-month CDs in January 1984.
With average rates like this you can’t settle for average returns.
Use our database of CD rates to find and compare the best deals from scores of banks.
Related Posts:No Bottom In Sight For CD Rates2-Year CD Rates Last To Hit Record Low5-Year CD Rates Set Miserly RecordCD Rates Hit New Lows This WeekCD Rates Reach Record Lows This Week
H&R Block Tops 6-Month CD Rates
H&R Block Bank has jumped to top of our rankings of the best 6-month CD rates.
Its promotional offer of 2.0% APR with a minimum deposit of $10,000 is available until Sept. 30, and you can apply online.
That’s the same rate United Central Bank was offering when it led our latest rundown of the best, nationally-available 6-month certificates of deposit.
But United Central cut its rate in half just before Labor Day and H&R Block stepped up to take its place as the only bank still offering 2.0%.
Click here to compare these rates with the best CD rates and terms from dozens of other banks in our extensive database.
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Reap 2.5% Returns With Best 2-Year CDs
Tennessee Commerce Bank grabbed the top spot in our September rankings of the best 24-month CD rates.
It’s mid-August rate hike to a 2.50% APY makes it the best-paying, nationally-available 24-month certificate of deposit we can find.
As recently as July you could still find at least one bank paying 3% on 2-year CDs. But that’s no longer the case, with the national average for these investments dropping to a near-record low 1.47% APY last week.
The top deals currently available to all savers are:
2.50% APY with a $2,500 minimum deposit from Tennessee Commerce Bank, which has a single location in Franklin.
2.50% APY with a minimum deposit of $50,000 or 2.40% APY with a minimum deposit of $500 for “Silver CDs” from Frontier Bank, which has 50 branches in Washington and Oregon.
2.43% APY with a minimum deposit of $2,500 or 2.48% APY with a minimum deposit of $25,000 from Wedbush Bank, which has one branch in Los Angeles.
2.40% APY with a minimum deposit of $5,000 from OneWest Bank, with 33 branches in Los Angeles area.
Frontier led our August survey with slightly higher returns — 2.70% APY with a $50,000 minimum deposit and 2.60% APY with a $500 minimum deposit.
Click here to compare these deals with the best CD rates from dozens of other banks in our extensive database.
Related Posts:Tennessee Bank Boosts 24-Month CD RatesEarn 2.4% With Wedbush’s 2-Year CDsBest Savings Accounts Pay Over 2% APYWashington Bank Tops 24-Month CD Rates11-Month CD Special Offers 2.78% APY
Local Deals Offer Highest CD Rates
Small banks are paying local customers 2.5% or more for short-term certificates of deposit — beating the best nationally-available CD rates by almost half-a-point.
That’s because the highest CD rates continue to be offered through deals restricted to the local customers of community banks.
In most cases the best rates are on odd-term certificates of deposit — CDs that don’t mature in the traditional 6-, 12- or 24-months.
But they routinely:
Pay more than twice the national average of comparable, traditional CDs — a record-low 0.98% APY for 12-month CDs right now.
Beat the best nationally-available rates — currently 2.15% APY for a 12-month CD from OneWest Bank.
Here are just some of the deals you can find out there. In each of these examples the CDs must be purchased in person at a local branch.
2.55% APY on a 13-month CD with a minimum deposit of $100 from the Bank of Kirksville, which has eight locations in northeast Missouri.
2.50% APY on a 15-month CD with a minimum deposit of $500 from Enterprise Bank of South Carolina, which has 12 locations in South Carolina.
2.50% APY on a 13-month CD with a minimum deposit of $500 from Atlantic Southern Bank, which has 13 branches in Georgia and Jacksonville, Fla. (This deal is also available at the three Georgia branches of Sapelo Southern Bank, a wholly-owned subsidiary.)
Click here to compare these offers with the best CD rates from dozens of other banks in our extensive database.
Related Posts:Atlantic Southern 3.0% APY 13-Month CDLocal Deals Beat Best National CD RatesTop CD Rates From Four Small Bank
Earn 4.01% With easyGROW Checking
When we ran down our favorite high-yield checking accounts last week, Tiffani wrote in to say how happy she was with easyGROWchecking from First Bank & Trust.
The bank, with 16 locations in South Dakota and Minnesota, is paying 4.01% APY on deposits up to $25,000.
Earning that kind of interest isn’t easy. Even the best-paying 60-month CDs top out at 3.5% APY — and that’s for a five-year commitment.
First Bank & Trust’s rules and perks are pretty standard. You must make 10 check card purchases each month and you’re reimbursed for all fees when using other banks’ ATMs.
(If you’re unfamiliar with how these work, take a look at our ABCs of high-yield checking accounts).
Since easyGROW checking was launched May 4 it doesn’t have a long track record.
But the account’s available nationwide. The online application is pretty simple. And at least one Bankaholic reader gives it a hearty endorsement.
“I have to admit, I love not having to worry about whether or not an ATM is on my network,” Tiffani says, “and the interest is already starting to add up.”
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Washington Fed Pays 2.50% On 2-Year CD
Here’s another example of the competitive CD rates we’re finding in the Pacific Northwest.
Seattle-based Washington Federal Savings is paying a 2.50% APY on a 24-month CD with a minimum deposit of $1,000.
If this deal was nationally-available, it would be near the top
of our rankings of the best 24-month CD rates.
But it’s not and you can’t apply online.
To open an account you’ve got to visit one of Washington Federal’s 124 branches in eight Western states.
This certificate of deposit is also available at a couple of banks it owns — First Mutual Bank, with 13 branches in Washington, and First Federal Bank, with 13 branches in New Mexico.
Since Washington Federal doesn’t even post CD rates on its Web site, call your local branch to confirm it’s still being offered before making the trip.
Click here for the address and phone number of the one nearest you.
You can use our extensive database of CD rates to compare this offer with the best deals from scores of banks.
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Competition Spurs CD Rates In Northwest
Banks in the Pacific Northwest appear to be doing something we haven’t seen in almost a year — competing for our money.
Calling this a rate war would be a stretch.
But a couple of regional banks are offering some of the best CD rates you’ll find anywhere in the country.
Frontier Bank, which has more than 40 branches in Washington and Oregon, is paying 2.60% APY on 24-month certificates of deposit with a $500 minimum deposit.
Invest at least $50,000 and you can earn 2.70% APY.
That topped our August rankings of the best, nationally-available 24-month CD rates.
Banner Bank is paying 2.50% APY on a 21-month CD, with a minimum deposit of $2,500.
You must apply online to get the Internet special, but it’s only open to residents of Washington, Oregon and Idaho, where Banner operates more than 100 branches and loan offices.
Community banks have leapt in, some with even better rates.
The Bank of Oswego, with two branches in Lake Oswego, Ore. is offering 2.75% APY on a 24-month CD with a $1,000 minimum deposit.
Although it says the rate is available nationwide, you can’t apply on-line. To open an account you have to speak with a customer service representative at 503-635-1699.
We wouldn’t be surprised if interest in this CD swamped Bank of Oswego’s phone lines and quickly forced it to limit this rate to local customers.
But with CD rates at or near record lows, savers need more of this.
Click here to compare these deals with the best CD rates from dozens of other banks in our extensive database.
Related Posts:Banner Bank 2.75% 15-Month CDWashington Bank Tops 24-Month CD RatesWashington Fed Pays 2.50% On 2-Year CDFirst Trade Union Tops 36-Month CD Rates17-Month Special Beats Most CD Rates
Citi Takes Lead In 18-Month CD Rates
It’s been a long time since a big bank had a CD rate that made us sit up and take notice.
But Citibank is offering 2.25% APY on an 18-month certificate of deposit with a very modest $500 minimum deposit.
That’s the best nationally-available deal on an 18-month CD that we know of, beating the 2.13% APY from Discover Bank, OneWest Bank and MetLife Bank. (They have much higher minimum deposits, too.)
The Federal Reserve and Treasury Department have been pumping so much cheap money into the big banks that they haven’t needed our savings.
Ever since the banking crisis struck last the best rates have come from smaller banks that still needed to compete for deposits.
But desperate savers would flood those banks so much money they’d quickly lower their rates, sometimes in a matter of days, contributing to the extraordinary volatility we’ve seen in CD rates this year.
Could Citi be leading the big banks back into the market?
Use our database to compare Citi’s offer with the best CD rates from scores of other banks.
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