Survey of the Best Local CD Rates Around the Nation

Many of the CD rates on my list continued to hold up since my survey from last week. For the top nationwide CD rates, there were a few cuts. Ally Bank's 11-month no-penalty CD and 5-year CD rates had slight rate cuts. Also Dime Bank reduced its 7-year CD rate by 10 basis points. For local CD deals, the short-term CD deals at MidCoast Community Bank in Delaware ended. Also, the CD specials at Sovereign Bank in the Dallas/Fort-Worth metro area ended.

Not all the changes were cuts. There were a few new additions to the list. Quaint Oak Bank raised its long-term CDs by 10 basis points. This is a small Pennsylvania bank. When I last contacted the bank on June 16th, they were accepting out-of-state deposits by mail. So I've added them to the nationwide lists for 3-, 4- and 5-year terms. You can still get a little higher rates at credit unions, but I added Quaint Oak for those who prefer banks.

I've added two Texas credit unions to the local CD lists. Unfortunately, there probably won't be as many people who can qualify for these deals as compared to Sovereign Bank which had branches throughout the Dallas/Fort Worth metro area.

One of the Texas credit unions that I added is El Paso Area Teachers Federal Credit Union. Its Jumbo CD tops my 5-year list with a 3.44% APY. Anyone who works or lives in El Paso County can qualify to join.

The other Texas credit union that I added is NavyArmy Federal Credit Union which allows those who live, work or worship in the Corpus Christi metro area to join. It has a long history of competitive short-term CD rates. Its 1.60% APY 1-year Jumbo CD rate currently ties Industrial Credit Union as the top 1-year CD rate.

There is one Texas credit union that continues to offer the best CD rate of 3.50% APY (for a 7-year term for a $100K minimum). It's Security Service Federal Credit Union (SSFCU), and one reader had hoped to find a way to join based on the credit union's claim that there are more than 2,100 ways to join. The reader called the credit union, but the CSR wasn't able to find a way for the reader to join. Unfortunately, the vast majority of these 2,100 ways are from employer groups in Texas, Colorado and Utah.

SSFCU is like many credit unions around the nation. They offer very competitive rates, but their fields of membership are narrow. At least SSFCU allows residents in several Texas and Colorado counties to join. Many credit unions don't even allow local residents to join if they don't work for certain employers.

I wish there were more CD deals in states like Arizona, California, Florida and Nevada, but CD rates in those states are below average and deals are rare. When there are CD deals, I've been posting on them even if they're not better than the nationally available CD rates. You can see some of these deals in my recent blog posts.

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 CD 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 6/24/2011

Under 1-Year CD Rates

• Ally Bank - 1.56% (2.34% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.50% 6-month CD with active checking account
• Ally Bank - 1.13% 11-month No-Penalty CD
• Incredible Bank - 1.10% 9-month internet CD

• Noteworthy Local Deals

• Visions Federal Credit Union - 5.00% 5-month CD (max $100K) (Rochester, NY only) (good until 6/30)
• 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 - 1.95% (2.34% 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

• NavyArmy Federal Credit Union - 1.60% ($100K) 1.50% ($1K) 12-month CD (Corpus Christi, TX metro)
• 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 - 2.08% (2.34% 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)
• Focus Bank - 1.61% 19-month CD (online application for MO, AR, KY, TN & parts of IL)
• Alaska USA Federal Credit Union - 1.60% ($100K) 1.40% ($10K) 18-month CD (San Bernardino County, CA; parts of WA & AK)
• Industrial Credit Union - 1.60% 18-month CD (Boston metro area)

2-Year CD Rates

• Ally Bank - 2.14% (2.34% 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)
• NavyArmy Federal Credit Union - 2.00% ($100K) 1.85% ($1K) 2-year CD (Corpus Christi, TX metro)
• Wings Financial Credit Union - 1.81% 2-year CD (Seattle & Minneapolis Metro areas)
• Industrial Credit Union - 1.75% 2-year CD (Boston metro area)
• Alaska USA Federal Credit Union - 1.75% ($100K) 1.55% ($10K) 2-year CD (San Bernardino County, CA; parts of WA & AK)

3-Year CD Rates

• Ally Bank - 2.21% (2.34% 5-year CD closed after 3 years, see review & risks)
• Melrose Credit Union - 2.17% 3-year CD
• Quaint Oak Bank - 2.10% 3-year CD

• Noteworthy Local Deals

• Visions Federal Credit Union - 3.50% 35-month CD (max $100K) (Rochester, NY only) (good until 6/30)
• University of Iowa Community Credit Union - 2.75% ($100K) 2.60% ($1K) 37-month (several parts of Iowa)
• El Paso Area Teachers Federal Credit Union - 2.68% ($50K) 2.57% ($500) 30-month & 3-year CD (El Paso, TX)
• Credit Union of Atlanta - 2.52% 3-year CD (parts of Atlanta, Georgia)
• Institution for Savings - 2.50% ($500) 30-month & 3-year CD (north of Boston)
• Security Service Federal Credit Union - 2.50% ($100K) 3-year CD (parts of Texas & Colorado)
• 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
• Quaint Oak Bank - 2.40% 4-year CD

• Noteworthy Local Deals

• Bayer Heritage Federal Credit Union - 3.17% 4-year CD (parts of WV, OH & SC)
• University of Iowa Community Credit Union - 3.15% ($100K) 3.00% ($1K) 49-month (several parts of Iowa)
• El Paso Area Teachers Federal Credit Union - 2.78% ($50K) 2.68% ($500) 4-year CD (El Paso, TX)
• Institution for Savings - 2.75% ($500) 4-year CD (north of Boston)
• Industrial Credit Union - 2.50% 4-year CD (Boston metro area)
• John Marshall Bank - 2.48% 4-year CD (Washington DC Metro)

5-Year CD Rates

• Fort Knox Federal Credit Union - 3.05% 5-year CD
• Melrose Credit Union - 2.93% 5-year CD
• Quaint Oak Bank - 2.85% 5-year CD

• Noteworthy Local Deals

• El Paso Area Teachers Federal Credit Union - 3.44% ($50K) 3.35% ($500) 5-year CD (El Paso, TX)
• Bayer Heritage Federal Credit Union - 3.43% 5-year CD (parts of WV, OH & SC)
• Vermonth Federal Credit Union - 3.10% 5-year CD, 3.20% IRA in Burlington, VT
• Institution for Savings - 3.00% ($500) 5-year CD (north of Boston)
• 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)
• TruService Community Credit Union - 2.93% 5-year CD (Little Rock metro area of AR)
• Industrial Credit Union - 2.75% 5-year CD (Boston metro area)
• State Bank of India (California) - 2.75% 5-year CD (Several cities in California & in Washington DC)
• Coastline Federal Credit Union - 2.75% ($75K) 5-year CD (Jacksonville Florida)
• Alaska USA Federal Credit Union - 2.75% ($100K) 2.65% ($10K) 5-year CD (San Bernardino County, CA; parts of WA & AK)

Over 5-Year CD Rates

• Navy Federal Credit Union - 3.20% ($20K) 7-year CD (membership restrictions)
• Dime Savings Bank - 3.00% 7-year CD

• Noteworthy Local Deals

• Security Service Federal Credit Union - 3.50% ($100K) 7-year CD (parts of Texas & Colorado)
• First Federal - 3.25% ($100K) 8-year CD (Southeast MS)
• BOK Financial Banks - 2.80% ($100K w/chk) 2.65% ($1K w/o chk) 7-year CD (in AZ, rates vary slightly in CO, KS, MO, NM, OK & TX)

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.