One-Year 5% Plus CDs Continue to Grow

More and more banks are offering 12-month CDs with rates of 5% and over. Bankrate.com now lists 21 banks with 5% APY or higher CDs. Corus Bank raised its 1-year CD from 5.09% to 5.15% APY yesterday. This is now tied with State Bank of India on Bankrate's list for the highest APY for a 1-year CD. State Bank of India's 5.15% APY requires a minimum of $1K for US residents. You can get an APY of 5.25% with a minimum of $50K and 5.35% with a minimum of $95K.

A recent 12-month certificate of deposit leader is Bank of Internet with an APY of 5.11%. Bank of Internet has the advantage of only a $1K minimum vs. Corus Bank's $10K minimum. Bank of Internet CD can be opened online however it requires either a check or a money order to fund. It doesn't seem to allow an ACH transfer. Bank of Internet CDs also have below average early withdrawal penalties: 6-month CD penalty is only one month of interest, 12-month CD penalty is 3 months of interest.

Western Financial Bank (now part of Wachovia) just came out with a 13-month 5.15% APY CD which has a minimum deposit requirement of only $100.