Sovereign Bank Offering 4.25% APY 12-Month CD

Sovereign Bank is offering a competitive 4.25% APY 12-Month CD. The CD has a minimum balance of $500. I called Soveriegn and they told me that the offer was available nationally but that the cd had to be opened via the phone or in a branch. While you can apply online, they'll take your information and have a tele-sales rep call you back to confirm your identify and fund the account. Funding can be done via a Western Union wire transfer or by mailing in a check. Pretty primitive. Clearly, this offer is more appealing if you live near a branch.

The 4.25% APY is competitive with the top 12-month rates on the BestCashCow rate table.

Sovereign nearly went under during the height of the banking crisis in September but was purchased by Spain's Santender Bank. Santender is one of the biggest banks in the world. Spain heavily regulated their banking sector and their banks have come through the crisis in decent shape, so far.

See the best online rates on 1-year CDs here.

Today's Highest Online CD Rates

Bank	Product Term	Interest Rate (APY)
Finworth, a division of InsBank	1-Year	4.55% APY with $50,000 minimum
TotalDirect, a division of City National Bank of Florida	1-Year	4.50% APY with $25,000 minimum
First Internet Bank of Indiana	1-Year	4.42% APY with $1,000 minimum
Merrick Bank	3-Year	4.15% APY with $25,000 minimum
Colorado Federal Savings Bank	3-Year	3.95% APY with $5,000 minimum
M.Y. Safra Bank	3-Year	3.90% APY with $500 minimum
Merrick Bank	5-Year	4.05% APY with $25,000 minimum
Synchrony Bank	5-Year	4.00% APY with no minimum
M.Y. Safra Bank	5-Year	3.90% APY with $500 minimum

Bank

Product Term

Interest Rate (APY)

Finworth, a division of InsBank

1-Year

4.55% APY with $50,000 minimum

TotalDirect, a division of City National Bank of Florida

1-Year

4.50% APY with $25,000 minimum

First Internet Bank of Indiana

1-Year

4.42% APY with $1,000 minimum