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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Bank of Internet USA0.55%$1k-12 Month CD
Bank of Internet USA0.25%$1k-6 Month CD
Accounts mentioned in this post. Rates as of August 30, 2014

New Higher CD Rates at Bank of Internet - Available Nationwide


Bank of Internet USA

Bank of Internet raised two of its CD rates. The biggest rate hike was on the 6-month CD which increased from 0.75% to 1.15% APY. This places the CD in the top spot for the highest nationally available 6-month CD rate without a checking account. The other rate hike was on the 1-year CD. The yield increased from 1.27% to 1.33% APY, and this also puts the CD in the top spot. These new rates are accurate as of 7/18/2011.

Earlier this month, Bank of Internet made its first rate increase on its 1-year CD. As I reported in my Bank of Internet CD review, this change put BofI near the top of the list. It's nice to see this latest change which moves the CD to the number one spot.

The only institution offering higher CD rates is Connexus Credit Union which still offers 1.50% APY for 6 months and 1.75% APY for 1 year. However, an active checking account is required to qualify for these rates. Without a checking requirement, Bank of Internet now has the lead for both the 6-month and 12-month terms.

I still like Ally Bank's 11-month No-Penalty CD better than the Bank of Internet 6-month CD. Ally's rate is a little lower at 1.13% APY (as of 7/18/2011), but since it's a no-penalty CD, the depositor can make the term anything he or she wants from 7 days to 11 months. It should also be noted that closing Ally Bank's 2.33% 5-year CD after 6 months will result in a post-penalty yield of 1.55%. I have more details about this strategy in my Ally vs iGObanking CD review.

Please refer to my last Bank of Internet CD review to learn more about Bank of Internet's CD features and application.

As I reported last week, Bank of Internet has launched a reward checking account. The top rate of 1.25% APY is low for reward checking, but it doesn't have a balance cap.

Bank of Internet is one of the oldest pure internet banks. During that time, its financials have remained strong. Currently, it has an overall health score at of 4 stars (out of 5) with a Texas Ratio of 12.25% (above average) based on March 2011 data. The bank has been a FDIC member since 2000 (FDIC Certificate # 35546).

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Related Pages: CD rates, Bank of Internet USA

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Comment #1 by Creighton (anonymous) posted on
You should mention Avidia Banks echecking account!

  • 2.27% APY!*
  • No foreign ATM transaction fees
  • ATM surcharge fees charged by other banks will be reimbursed to you, up to $10 per statement cycle
  • No maintenance fees. Plus they have free access to a great debit cards rewards program!!

Comment #2 by Anonymous posted on
B of I rates are still lower then many local banks and credit unions.

Comment #4 by Anonymous posted on


In order to earn the 2.27% APY, you have to ..

eChecking1 None 2.25%
.75% - 2.27%
$25,000.01 or greater
1In order to earn the higher rate for balances of $25,000 or less and be eligible for surcharge refunds, you must be enrolled in Avidia Bank’s Internet banking product and sign on at least once per statement cycle, receive your statement electronically, have at least one direct deposit or other ACH transaction per statement cycle, and perform a minimum of (10) ten purchases with your debit card each statement cycle. If you do not meet all of these requirements, you will receive the lower rate on your entire balance.

Comment #7 by Mr. Frugality (anonymous) posted on
Mr. Frugality
I don't think a "blanket" statement that B. of I. rates are "still lower than many local banks and credit unions" is a fair assessment of their offerings. Obviously, with B. of I.'s new 6 month and 12 month rates sitting in the top spot for these two CD's nationally would definitely make them highly competitive and it's easy to find local rates that are very much lower, also. It all depends on a customer's requirements and location and the various institutions' individual offerings.