Survey of the Best Local CD Rates

Many of the CD rates on my list continued to hold up since my survey from last week. However, it was a bad week for New York depositors. Three New York credit unions reduced their CD rates this week. Island Federal Credit Union lowered the rate of its hot 11-month CD special from 2.00% to 1.20% APY. Montauk Credit Union lowered its long-term CD rates by 50 basis points, and Bay Ridge FCU lowered its 5-year Jumbo CD by 1 percentage point.

For those in the Dallas-Fort Worth area, this is the last day for the CD specials at Sovereign Bank of Texas. The highest rate is 2.53% APY for a 37-month CD.

For new higher rates, there are two noteworthy additions.

First, Fort Knox Federal Credit Union took the top spot for the 5-year nationally available CD. Yesterday the credit union raised its 5-year CD rate from 2.65% to 3.05% APY. My only concern is their early withdrawal penalty policy which allows them to increase the early withdrawal penalty on existing CDs.

The other addition was a local deal for those in east Massachusetts. Top CD rates are being offered by Institution for Savings which include 3.00% APY for 5 years, 2.75% APY for 4 years and 2.50% APY for 3 years and 30 months. Hat tip to reader scottj who mentioned these in the forum.

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 6/17/2011

Under 1-Year CD Rates

• Ally Bank - 1.57% (2.37% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.50% 6-month CD with active checking account
• Ally Bank - 1.14% 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)
• MidCoast Community Bank - 1.35% 6-to-9 month CD (Wilmington & Dover, DE)
• 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 - 1.97% (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)
• 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 - 2.10% (2.37% 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)
• 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)
• Sovereign Bank (TX) - 1.51% 17-month CD special (Dallas/Fort Worth Metro) (6/17 is last day)

2-Year CD Rates

• Ally Bank - 2.17% (2.37% 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) (6/17 is last day)
• 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 - 2.24% (2.37% 5-year CD closed after 3 years, see review & risks)
• Melrose Credit Union - 2.17% 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)
• Sovereign Bank (TX) - 2.53% 37-month CD special (Dallas/Fort Worth Metro) (6/17 is last day)
• 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

• 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)
• 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

• Noteworthy Local Deals

• 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 - 3.10% 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.