BankShout looks at the top 1-year certificate of deposit rates as of Wednesday, May 19, 2010. Annual percentage yields (APY) are for national and Internet banks based in the U.S. Banks listed below are insured by the Federal Deposit Insurance Corporation.
The emergence in the last several weeks of a new leader in 1-year CD yields is causing APYs for that term to rise slightly across the board. Sallie Mae, known largely for its student lending business, jumped into the fray in recent weeks; the bank’s 1-year CD has an APY of 1.55% and carries no minimum deposit.
Other competitors have emerged. New to this week’s BankShout survey is Bank of the Internet USA, with a 1.54% APY on a minimum deposit of $1000. Also boosting yields is Aurora Bank, FSB, at 1.53% for the 12-month term, also with a minimum balance of $1000. Both Nexity Bank ($1000 minimum deposit) and newdominionDIRECT.com ($3000 minimum) held steady at 1.51%. Ally Bank pushed its 1-year CD APY to 1.50% for no minimum deposit, up from 1.49% earlier in May.
Other financial institutions remained at 1.50% APY. Discover Bank (minimum deposit $2500) and OneWest Bank, FSB (minimum $5000) round out this week’s BankShout survey of 1-year CD terms.
The entrance of Sallie Mae into high-yielding (relatively speaking, of course) savings products bodes well for depositors. The huge lending company could spur competition and push overall yields to better returns, especially for online deposits. I’m sure BankShout readers will want to earn every penny they can, so log in daily for more rates and banking news.
Kevin Fleming founded the CreditShout Network in 2008 to help people manage their credit and finances. Kevin wants to make it easy for anyone, regardless of their level of financial knowledge to understand banking and what may seem like the complex world of personal finance.
