Survey of the Best Local CD Rates in Rochester, Seattle, Minneapolis and Other Cities

There were quite a few rate changes to my list from last week. We lost some more 3.00%+ 5-year CDs. PEF Federal Credit Union in the Cleveland area reduced its 5-year CD yield from 3.29% to 2.93%, and Liberty Bank in Iowa and Southwest Florida is no longer listing its 3.00% 5-year CD special. Bay Ridge Federal Credit Union that's based in Brooklyn, New York also cut its 5-year CD rate, but it still remains very competitive with a 3.25% APY for a $20K deposit. Its shorter-term CDs had bigger cuts and fell off my list.

Not all the changes were for the worse. University of Iowa Community FCU didn't change its rates, but it expanded the terms for its 3.30% CD special ($100K min, 3.15% for $1K min). It used to have only a 4-year term. Now the term is a range from 37 to 48 months.

There were also several nice additions to my list. The best deal is being offered by Visions Federal Credit Union at its Rochester New York branch. It's offering a very high 5% APY for a 5-month term and a 3.50% APY for a 35-month term. Maximum deposit is $100K. It's only available to new members in Rochester (see my review).

Another good New York deal is available to most residents of Suffolk and Nassau County. It's at Island Federal Credit Union which is offering a 2.00% APY 11-month CD special (see my review).

Outside of New York State, I added the new 2-year CD rate at Wings Financial Credit Union. It's not a hot deal, but the 2-year yield of 1.81% APY is very competitive. Membership is open to residents in the Seattle and Minneapolis metro areas in addition to those employed in the air transportation industry (see my review).

Another new CD that I added is the 2.05% APY 18-month CD at Community Bank of Tri-County which has branches in Southern Maryland. Its northern most branch is about 20 miles south of Washington DC. According to the bank rep, they accept DC metro residents (see my review).

Best Nationwide CD Rates

So you can see how the local 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.

Using the Rate Tables to Find the Best Local CD Rates

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 5/20/2011

Under 1-Year CD Rates

• Ally Bank - 1.59% (2.39% 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 - 1.10% 11-month No-Penalty CD

• Noteworthy Local Deals

• Visions Federal Credit Union - 5.00% 5-month CD (max $100K) (Rochester, NY only)
• Capital One Bank - 1.50% checking with rate guaranteed for 12 months (Austin metro area)
• Industrial Credit Union - 1.40% 6-month CD (Boston metro area)
• Alma Bank - 1.35% 12-month Liquid CD (New York City)
• Washington Federal Bank for Savings - 1.15% 9-month CD (Chicago)

1-Year CD Rates

• Ally Bank - 1.99% (2.39% 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

• Island Federal Credit Union - 2.00% 11-month CD (Suffolk & Nassau Counties, NY)
• Industrial Credit Union - 1.60% 12-month CD (Boston metro area)
• Credit Union of Atlanta - 1.53% 12-month CD (parts of Atlanta, Georgia)
• Capital One Bank - 1.50% checking with rate guaranteed for 12 months (Austin metro area)
• 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)
• Alma Bank - 1.35% 12-month Liquid CD (New York City)

18-month CD Rates

• Ally Bank - 2.12% (2.39% 5-year CD closed after 18 months, see review & risks)
• Alliant Credit Union - 1.55% ($25K min) 18-month CD

• Noteworthy Local Deals

• Community Bank of Tri-County - 2.05% 18-month CD (Maryland)
• 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 - 2.19% (2.39% 5-year CD closed after 2 years, see review & risks)
• Self-Help Credit Union - 1.77% 2-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.25% ($100K) 2.10% ($1K) 25-month CD (several parts of Iowa)
• Sovereign Bank (TX) - 2.02% 27-month CD special (Dallas/Fort Worth Metro)
• Wings Financial Credit Union - 1.81% 2-year CD (Seattle & Minneapolis Metro areas)
• Montauk Credit Union - 1.75% 2-year CD (New York City)
• Eastbank - 1.75% 2-year CD (New York City)

3-Year CD Rates

• Ally Bank - 2.26% (2.39% 5-year CD closed after 3 years, see review & risks)
• Velocity Credit Union - 2.27% 3-year CD special

• Noteworthy Local Deals

• Visions Federal Credit Union - 3.50% 35-month CD (max $100K) (Rochester, NY only)
• University of Iowa Community Credit Union - 3.30% ($100K) 3.15% ($1K) 37-month CD (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)
• Security Service Federal Credit Union - 2.50% ($100K) 3-year CD (parts of Texas & Colorado)
• Montauk Credit Union - 2.50% 3-year CD (New York City)
• Atlas Bank - 2.33% 3-year CD (New York City)
• EBSB Direct - 2.25% 3-year CD (New England and New York State)

4-Year CD Rates

• Alliant Credit Union - 2.45% ($25K min) 4-year CD
• Tennessee Commerce Bank - 2.35% 4-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 3.30% ($100K) 3.15% ($1K) 4-year CD (several parts of Iowa)
• Bayer Heritage Federal Credit Union - 3.17% 4-year CD (parts of WV, OH & SC)
• Montauk Credit Union - 2.75% 4-year CD (New York City)
• John Marshall Bank - 2.48% 4-year CD (Washington DC Metro)
• PEF Federal Credit Union - 2.47% 4-year CD (parts of the Cleveland metro area)

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 - 3.43% 5-year CD (parts of WV, OH & SC)
• Bay Ridge Federal Credit Union - 3.25% ($20K) 5-year CD (limited membership in New York City)
• Androscoggin Bank - 3.05% 5-year rising-rate CD (Portland & other cities in Maine)
• Montauk Credit Union - 3.00% 5-year CD (New York City)
• Security Service Federal Credit Union - 3.00% ($100K) 5-year CD (parts of Texas & Colorado)
• John Marshall Bank - 2.94% 5-year CD (Washington DC Metro)
• PEF Federal Credit Union - 2.93% 5-year CD (parts of the Cleveland metro area)
• State Bank of India (California) - 2.75% 5-year CD (Several cities in California & in Washington DC)
• Premier Community Credit Union - 2.75% 5-year CD (Stockton CA metro)

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 - 2.85% ($100K w/chk) 2.70% ($1K w/o chk) 7-year CD (in AZ, rates vary slightly in CO, KS, MO, NM, OK & TX)