Online bank boosts its CD rates with special anniversary offer

Pink piggy bank atop money

It's been a long time since a bank has come along with a deal on 1- and 2-year CD rates like this.

Seven months, in fact.

But the Birmingham, Ala.-based online bank AloStar Bank of Commerce is offering for a limited time 12- and 24-month rates that beat all the best nationally available deals in the country.

With a $1,000 minimum deposit, you'll earn 1.25% APY on 12-month certificates of deposit and 1.40% APY on 24-month certificates.

Rates for these terms haven't been this good since last September.

These promotional certificates of deposit are in celebration of the bank's first anniversary and might not last long.

AloStar Bank of Commerce was established a year ago to acquire the online bank Nexity Bank, which was seized by federal regulators. AloStar is FDIC-insured.

On its website, the bank says these rates are "for a limited time only": "(I)n celebration of our highly successful first year, we offer up 1 year CD rates and 2 year CD rates guaranteed to raise eyebrows. We're pretty sure, they're among the highest CD rates available."

They are, in fact, the best bank yields available to savers everywhere.

AloStar's 12-month certificate pays a tenth of a percentage point better than the next best deal, 1.15% APY offered by Doral Bank Direct and KeySource Commercial Bank.

Doral Bank Direct (www.doralbank.com) is the online bank of Doral Bank, the leading community bank in Puerto Rico that also has five branches in northwest Florida and two in New York City, requires a $1,000 minimum deposit.

KeySource Commercial Bank (www.keysourcebank.com), which has a single branch in Durham, N.C., requires a $100 minimum deposit if you visit a branch or buy over the phone or through the mail and a $5,000 minimum deposit if purchased online.

AloStar's 24-month certificate enjoys an even greater lead. The next-best nationally available 2-year rates -- 1.26% APY -- belong to Broadway Federal Bank (www.broadwayfederalbank.com), which has five branches in Los Angeles and Inglewood, Calif., and requires a $500 minimum deposit.

These deals represent huge rate boosts over what AloStar had been offering. It bumped its 12-month rates from 1.03% APY and 24-month rates from 1.19% APY.

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.