Survey of the Best Local CD Rates in San Jose, Denver, New York and Other Cities

The CD rates continued to hold up well. There were just a couple of rate cuts since last week. The largest rate cut was in California. Premier Community Credit Union reduced its 5-year CD rate from 3.00% to 2.75% APY. This remains very competitive especially for California so I'm keeping it on the list. Unfortunately, Premier doesn't cover too many areas of California. Its field of membership is primarily limited to those who live or work in San Joaquin County.

The best CD deal in California continues to be offered by State Bank of India (California). Its 5-year CD rate matches Premier at 2.75% APY, but it's available to many more California residents. Some of the cities with branches include Los Angeles, San Jose, San Diego and Bakerfield.

Security Service Credit Federal Credit Union raised its 3-year CD rates. Its top tier 3-year rate is now 2.50% APY for a minimum $100K deposit which easily beats the best nationally available CD rate. So I added this to my 3-year CD list. Its 5-year and 7-year CD rates remained the same, and they continue to be on the list. This is a large credit union which is available to parts of Texas and Colorado (mostly around San Antonio and Denver).

New York City continues to have several good CD deals with top rates at Atlas Bank and Montauk Credit Union. A new deal popped up this week at Alma Bank which has several branches in New York City. The bank is offering a special 1-year CD with a 1.35% APY. Although this rate isn't that great, it is a liquid CD that allows one penalty-free withdrawal and one deposit per month. This allows a depositor to make this into a 6-month CD or any short-term CD that he or she wants. So I included this not only on the 1-year CD list but also in the "under 1-year CD" list. It's a lot like Ally Bank's 11-month No-Penalty CD or Salem Five Direct's savings account promo, but the rate is higher.

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 of the highest 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 Compare 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 5/13/2011

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 - 1.10% 11-month No-Penalty CD

• Noteworthy Local Deals

• Capital One Bank - 1.50% checking with rate guaranteed for 12 months (Austin metro area)
• Bay Ridge Federal Credit Union - 1.50% ($20K) 6-month CD (limited membership in New York City)
• 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 - 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

• Bay Ridge Federal Credit Union - 1.75% ($20K) 1-year CD (limited membership in New York City)
• 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)
• 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 - 2.13% (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

• Eastbank - 1.70% 18-month CD (New York City)
• 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)
• Liberty Bank - 2.13% 23-month CD (Iowa & SW Florida)
• Sovereign Bank (TX) - 2.02% 27-month CD special (Dallas/Fort Worth Metro)
• Bay Ridge Federal Credit Union - 2.00% ($20K) 5-year CD (limited membership in New York City)

3-Year CD Rates

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

• 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)
• 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)
• EBSB Direct - 2.25% 3-year CD (New England and New York State)

4-Year CD Rates

• Fort Knox Federal Credit Union - 2.45% 4-year CD
• Tennessee Commerce Bank - 2.35% 4-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 3.30% ($100K) 4-year CD (3.15% $1K) (several parts of Iowa)
• Bayer Heritage Federal Credit Union - 3.17% 4-year CD (parts of WV, OH & SC)
• PEF Federal Credit Union - 2.78% 4-year CD (parts of the Cleveland metro area)
• Montauk Credit Union - 2.75% 4-year CD (New York City)

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

• Bay Ridge Federal Credit Union - 3.50% ($20K) 5-year CD (limited membership in New York City)
• Bayer Heritage Federal Credit Union - 3.43% 5-year CD (parts of WV, OH & SC)
• PEF Federal Credit Union - 3.29% 5-year CD (parts of the Cleveland metro area)
• 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)
• 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)
• 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)
• 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 - 2.90% ($100K w/chk) 2.75% ($1K w/o chk) 7-year CD (AR, AZ, CO, KS, MO, NM, OK & TX) Rates vary slightly by state