Survey of the Best Local CD Rates in Dallas, Atlanta, Phoenix, San Diego and Other Cities

Last week I did a short survey of the best local CD deals. This is an updated version of that survey. As I mentioned last week, this used to be in my Saturday weekly summaries, but I decided it would be better for a separate post.

Fortunately, most of the CD rates haven't fallen since last week. However, with May starting on Sunday, we may see some rate drops next week especially at credit unions.

I've added quite a few new long-term local CDs. One thing to keep in mind with any long-term CD is the early withdrawal penalty. Some banks and credit unions have very harsh penalties. One example is Dime Savings Bank, It currently offers the best nationally available 7-year CD, but the early withdrawal penalty is 2 years of interest which is twice as big as most 7-year CDs.

So you can see how these rates compare, I'm including the best CD rates that are available nationwide. These are often from credit unions which anyone can join via an association. I'm also including more than one CD for each category. For example, Connexus Credit Union has 3 best CD rates, but these require an active checking account. Since many don't want to worry about maintaining another checking account, I'm including another CD without any checking requirement. And I'm including Ally Bank's 5-year CD for many of the short-term CDs. As I described many times, these can be better deals than short-term CDs due to the 60-day early withdrawal penalty. I've included a link to a discussion of this strategy that describes the potential risks.

As I described in my rate table overview, you can use our rate tables to find the best local CD rates. One thing that complicates looking for local rates is that it can be hard to know the areas served by small banks and credit unions. So in my list below, I primarily focus on banks and credit unions that serve large regions or large metro areas. My criteria is that they offer rates higher than the nationwide equivalent CD. If the rate is high enough, I'll also mention a bank or credit union even if it's not in a large populated area. These aren't hard rules. They're just general rules to keep the list manageable and useful.

Rates Accurate as of 4/29/2011

Under 1-Year CD Rates

• Ally Bank - 1.60% (2.40% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.50% 6-month CD with active checking account
• Salem Five Direct - 1.25% savings account with rate guaranteed until 4/1/2012
• Ally Bank - 1.15% 11-month No-Penalty CD

• Noteworthy Local Deals

• Miami Postal Service Credit Union - 1.76% 9-month CD (Miami metro area)
• Industrial Credit Union - 1.40% 6-month CD (Boston metro area)

1-Year CD Rates

• Ally Bank - 2.00% (2.40% 5-year CD closed after 1 year, see review & risks)
• Connexus Credit Union - 1.75% 12-month CD with active checking account
• Melrose Credit Union - 1.41% APY 12-month CD

• Noteworthy Local Deals

• Industrial Credit Union - 1.60% 12-month CD (Boston metro area)
• Credit Union of Atlanta - 1.53% 12-month CD (parts of Atlanta, Georgia)
• Atlas Bank - 1.51% 12-month CD (New York City)
• State Bank of India (California) - 1.50% 15-month CD (Several cities in California & in Washington DC)
• South Florida Federal Credit Union - 1.50% 12-month CD (limited membership in Miami)

18-month CD Rates

• Ally Bank - 2.13% (2.40% 5-year CD closed after 18 months, see review & risks)
• Alliant Credit Union - 1.55% ($25K min) 18-month CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.50% 16-month (several parts of Iowa)
• Industrial Credit Union - 1.60% 18-month CD (Boston metro area)
• Sovereign Bank (TX) - 1.51% 17-month CD special (Dallas/Fort Worth Metro)

2-Year CD Rates

• Ally Bank - 2.20% (2.40% 5-year CD closed after 2 years, see review & risks)
• Self-Help Credit Union - 1.77% 2-year CD

• Noteworthy Local Deals

• Atlas Bank - 2.22% 2-year CD (New York City)
• Sovereign Bank (TX) - 2.02% 27-month CD special (Dallas/Fort Worth Metro)

3-Year CD Rates

• Ally Bank - 2.27% (2.40% 5-year CD closed after 3 years, see review & risks)
• Melrose Credit Union - 2.17% 3-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.60% 37-month (several parts of Iowa)
• Sovereign Bank (TX) - 2.53% 37-month CD special (Dallas/Fort Worth Metro)
• Credit Union of Atlanta - 2.52% 3-year CD (parts of Atlanta, Georgia)
• Montauk Credit Union - 2.50% 3-year CD (New York City)
• EBSB Direct - 2.25% 3-year CD (New England and New York State)

5-Year CD Rates

• Connexus Credit Union - 3.00% 5-year CD with active checking account
• Melrose Credit Union - 2.93% 5-year CD

• Noteworthy Local Deals

• Bayer Heritage Federal Credit Union - 3.56% 5-year CD (parts of WV, OH & SC)
• PEF Federal Credit Union - 3.29% 5-year CD (parts of the Cleveland metro area)
• Montauk Credit Union - 3.00% 5-year CD (New York City)
• Liberty Bank - 3.00% 5-year CD (Iowa & SW Florida)
• Security Service Federal Credit Union - 3.00% ($100K) 5-year CD (parts of Texas & Colorado)
• Premier Community Credit Union - 3.00% 5-year CD (Stockton CA metro)
• John Marshall Bank - 2.94% 5-year CD (Washington DC Metro)
• State Bank of India (California) - 2.75% 5-year CD (Several cities in California & in Washington DC)

Over 5-Year CD Rates

• Navy Federal Credit Union - 3.40% ($20K) 7-year CD (membership restrictions)
• Dime Savings Bank - 3.10% 7-year CD

• Noteworthy Local Deals

• Montauk Credit Union - 3.50% 7-year CD (New York City)
• Security Service Federal Credit Union - 3.50% ($100K) 7-year CD (parts of Texas & Colorado)
• BOK Financial Banks - 3.05% ($100K w/chk) 2.90% ($1K w/o chk) 7-year CD (AR, AZ, CO, KS, MO, NM, OK & TX)