AloStar Bank of Commerce just raised the rates on its 1-year, 18-month and 2-year CDs. The 1-year CD rate increased 10 bps to 1.10% APY, the 18-month CD rate increased 5 bps to 1.15% APY, and the 2-year CD rate increased 5 bps to 1.25% APY. The 1-year and 18-month CD rates are now on top for nationally available CD rates. These rates are listed in the bank's CD rates page as of 12/06/2013.
Minimum deposit is $1,000. Unfortunately, lower rates are listed for IRA CDs. More CD details are listed in the bank's Truth-in-Savings disclosure. A link to this document is located below the rate table in the bank's CD rates page. I reviewed the opening and closing process along with the early withdrawal penalties in my 2012 AloStar CD review.
AloStar Bank of Commerce Overview
On April 15, 2011, Nexity Bank failed. The FDIC arranged for the newly-chartered Alostar Bank of Commerce to assume all of Nexity deposits. AloStar continued to operate like Nexity Bank as an internet bank with savings, money market accounts and CDs. Its savings account account rates have always been a little below average for internet banks.
The bank has an overall health grade at DepositAccounts.com of an A+ based on September 2013 data. Please refer to our financial overview of AloStar Bank of Commerce for more details. The bank is a FDIC member (FDIC Certificate # 59060).
How These CD Rates Compare
This AloStar is now tied with Connexus Credit Union for the top 12-month CD rate that’s available nationwide. However, AloStar has an advantage since Connexus Credit Union requires an active checking account with direct deposit to qualify for the 1.10% APY.
For the 18-month CD, AloStar is also on top. GE Capital Bank had been offering an APY of 1.15%, but its 18-month CD yield has just fallen to 1.05%. You can get higher rates with slightly different terms at all-access credit unions. Xceed Financial Credit Union has a special 19-month share and IRA share certificate with a 1.25% APY. McGraw-Hill Federal Credit Union has a special 15-month CD with a 1.50% APY, but this requires a checking account with direct deposit.
For the 2-year CD, PenFed has the clear advantage with a 1.41% APY.
The above rates are accurate as of 12/06/2013.
Searching for Top CD Rates
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