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Discover Bank2.30%$2,500-10 Year CD
Melrose Credit Union2.27%$5k-5 Year Share Certificate
Discover Bank2.20%$2,500-7 Year CD
Discover Bank2.10%$2,500-5 Year CD
Ally Bank1.60%--High Yield 5 Year CD
Learn MoreSponsored Note: No Minimum Deposit to Open. Consistently competitive rates. Member FDIC.
Pentagon Federal Credit Union1.21%$1k-7 Year Money Market Cerificate
Accounts mentioned in this post. Rates as of August 28, 2014

Rate Leaders Cutting Long-Term CD Rates


Rate Leaders Cutting Long-Term CD Rates

A few of the rate leaders have cut their long-term CD rates. I'm not sure if it's due to the higher demand for long-term CDs due to recent news of their usefulness, or if it's just due to the interest rate environment. Treasury yields have fallen to levels not seen since the 2008 financial crisis.

Some of the recent cuts include:

  • Melrose Credit Union - All of its CD rates have fallen by 25 basis points. That brings Melrose 5-year CD yield down to 3.03% APY. It no longer has much of a lead as the best nationwide 5-year CD. My last review of Melrose Credit Union CD rates was in May
  • Discover Bank - The 10-year and 7-year CD rates fell by 25 basis points. The 5-, 4- and 3-year CD rates fell by 10 basis points. The 10-year CD rate is now 3.25% APY. This 10-year CD received publicity about its mild early withdrawal penalty (see my Discover CD review).
  • Ally Bank - Ally has been slowing cutting its 5-year CD rate for the last couple of weeks. It had been at 2.94% APY for over a month, but it's now down to 2.74% APY. The very mild 60-day early withdrawal penalty still makes this a deal (see my Ally Bank CD review), but the deal is starting to cool as the rate falls.

If you can't qualify for PenFed's 5% 10-year CD, you may still want to consider PenFed's current 3.75% APY 7-year CD (see my PenFed 7-year CD review). PenFed typically changes CD rates at the start of each month, so this may end next Wednesday on September 1st.

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  Tags: Pentagon Federal Credit Union, Melrose Credit Union, Discover Bank, CD rates, Ally Bank

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Comment #1 by Gerard (anonymous) posted on

I think USAA also cut its rates on CD's very recently.  You may want to look into that and report back to us.

Comment #2 by KenBDG posted on
Yes, USAA Bank cut its 7-year CD rates last week. I posted about that in this forum thread


Comment #3 by Anonymous posted on
So, is the Discover 10-year still a better deal than the Ally 5-year?

Comment #4 by Anonymous posted on
Discover Bank AAA members used to get 25 basis points on CD's over non-members.  Now they only get 5.

Comment #5 by Anonymous posted on
Add Alliant Credit Union to that list.

Comment #6 by Anonymous posted on
So I'm wondering if that 5% 10 year from PenFed will still fly by Jan?