We've lost another option for 12-month CD rates above 1% since we last reviewed this term.
State Bank of India-Chicago and GE Capital are the last two banks to pay more than 1% on a nationally available 1-year CD. They both pay 1.05% APY.
The biggest difference between these two banks is the minimum deposit requirement.
State Bank of India-Chicago requires a modest $2,500 minimum, while GE Capital wants a hefty $25,000 minimum to open.
Last month you could have earned 1.05% APY from CIT as well, but the bank just recently dropped its rate to 1% APY, falling out of the trio.
While banks seem to be thinning out at the very top of our list, it's nice to see that you can still take home the same rate that you could have at the beginning of the year.
Of course, rates are still exceptionally low.
The Federal Reserve has driven savings rates to record lows and plans to keep them there until the unemployment rate falls to 6.5%.
Unemployment fell to 7.5% in April but increased slightly to 7.6% in the May jobs report.
So, there's still a long way to go before the Fed says it will allow interest rates to move upward.
It's unlikely that interest rates will be any higher when a 1-year CD purchased today matures in June 2014.
Here are the best nationally available 12-month certificates of deposit, as of today:
|State Bank of India-CHI||1.05%||$2,500|
|Salem Five Direct||1%||$10,000|
|Doral Bank Direct||0.96%||$500|
|State Bank of India-NY||0.95%||$5,000|
To qualify for this list, a bank must allow savers from all 50 states to buy its certificates of deposit online or through the mail.
Click here to compare these returns with the top CD rates from dozens of banks in your area.
Our CD calculator will help you figure out the interest you'll earn, for any term, amount and interest rate.
|State Bank of India - Chicago||The FDIC-insured Chicago branch of India's largest bank, which operates independently of other U.S. branches.||www.sbichicago.com|
|GE Capital Retail Bank||An online bank that is a subsidiary of GE Capital Corp., the financial services unit of the manufacturing giant.||banking.gecrb.com|
|CIT Bank||The online consumer bank of CIT Group Inc., which offers financing to small businesses and middle-market companies.||www.bankoncit.com|
|Salem Five Direct||The online division of Salem 5 Bank, which has 23 branches just north of Boston.||www.salemfivedirect.com|
|Doral Bank Direct||The online bank of Doral Bank, the leading community bank in Puerto Rico, which also has five branches in northwest Florida and two in New York City.||www.doralbankdirect.com|
|Colorado Federal Savings Bank||An online bank based in Greenwood Village, Colo.||www.coloradofederalbank.com|
|OneWest||Which has 73 branches in southern California.||www.owb.com|
|EH National Bank||Which has a single branch in Beverly Hills, Calif.||www.ehnbank.com|
|State Bank of India-NY||The FDIC-insured New York branch of India's largest bank, which operates independently of other U.S. branches.||www.statebank.com|
|Ally Bank||An online bank based in Charlotte, N.C.||www.ally.com|
Nervous savers have also pulled billions of dollars out of the stock market and flooded banks with cash.
Consumer savings in bank accounts, excluding business and institutional accounts, had grown to $8.2 trillion by the end of last year, up from $3.8 trillion in December 2001, according to Market Rates Insight Inc. in San Anselmo, Calif.
That's much more money than they have been willing to lend out.
Data compiled by SNL Financial of Charlottesville, Va., show that deposits continued to grow more quickly than loans during the third quarter of 2012.
Banks were able to loan out only 72.4% of their deposits, down from more than 93.0% in early 2008, when the financial crisis was just beginning.
As a result, savers have seen the returns on their CDs, savings and money market accounts drop to nearly nothing. The banks don't need, or even want, any more of our money.
It's why the average return on 1-year CDs fell from 2.30% APY on Dec. 16, 2008, when the federal funds rate was cut to zero, to 0.24% APY, today.
Contributing editor Darci Swisher contributed to this report.
Mitch Strohm on Google Plus.