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)
Northern Bank Direct	1-Year	5.60% APY with $500 minimum
Finworth, a division of InsBank	1-Year	5.38% APY with $50,000 minimum
TotalDirect, a division of City National Bank of Florida	1-Year	5.35% APY with $25,000 minimum
Dollar Savings Direct, a division of Emigrant Bank	3-Year	5.00% APY with $1,000 minimum
First Internet Bank of Indiana	3-Year	4.66% APY with $1,000 minimum
IncredibleBank	3-Year	4.58% APY with $1,000 minimum
First Internet Bank of Indiana	5-Year	4.55% APY with $1,000 minimum
BMO Alto, a division of Bank of Montreal Harris	5-Year	4.50% APY with no minimum
Department of Commerce	5-Year	4.34% APY with $500 minimum

Bank

Product Term

Interest Rate (APY)

Northern Bank Direct

1-Year

5.60% APY with $500 minimum

Finworth, a division of InsBank

1-Year

5.38% APY with $50,000 minimum

TotalDirect, a division of City National Bank of Florida

1-Year

5.35% APY with $25,000 minimum