| Bank or Credit Union | Apy | Min | Max | Product | |
| Bank of Internet USA | 0.75% | $1k | - | 12 Month CD | |
| Bank of Internet USA | 0.40% | $1k | - | 6 Month CD |
New Higher CD Rates at Bank of Internet - Available Nationwide
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 DepositAccounts.com 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).
Searching for the Best CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.
Creighton (anonymous) - #1, Monday, July 18, 2011 - 1:21 PM
You should mention Avidia Banks echecking account!
Anonymous - #2, Monday, July 18, 2011 - 9:24 PM
B of I rates are still lower then many local banks and credit unions.
Anonymous - #4, Tuesday, July 19, 2011 - 11:37 AM
Creighton,
In order to earn the 2.27% APY, you have to ..
.25%
.75% - 2.27%
$25,000.01 or greater
Mr. Frugality (anonymous) - #7, Tuesday, July 19, 2011 - 5:22 PM
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.
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