Survey of the Best CD Rates for July 22, 2011

Most of the CD rates on my list of top rates held this week. One nice change for the best nationally available CDs is the rate increase at Bank of Internet. Its 6-month CD rate increased to 1.15% APY and its 12-month CD increased to 1.33% APY. That puts BofI in the lead for both the under-1-year and 1-year categories.

Connexus Credit Union still has a big lead over Bank of Internet for the 6-month and 12-month terms but I consider Connexus' CDs a little different since these require an active checking account. Also a little different is Ally Bank's CD. Its 2.33% APY 5-year CD has a lead over Connexus' CDs when you take into account the post-penalty yields when the CDs are closed at 6 and 12 months.

For terms longer than 12 months, iGObanking's CD beats Ally on this long-term CD strategy. However, you have to be braver since this requires a 10-year iGObanking CD. This 10-year CD has a 3.50% APY and an early withdrawal penalty of only 6 months of interest. This is larger than Ally's 2-month interest EWP, but the higher rate becomes more important than the small EWP for closures after 1 year. I did a comparison of these CDs and discussed the risks of this long-term CD strategy in my iGObanking vs Ally CD review.

Local CD Rate Changes

One addition in the short-term CD list is not a CD, but you can consider it a CD when you're looking for a CD. It's a money market account from Dime Savings Bank. The reason why it's on the CD list is that Dime is having a promotion for new customers which guarantees 1.75% APY for 6 months. This gives the money market account the benefit of a CD rate lock. This used to be a nationwide deal, but it's now limited to New York State residents. I have more details about this deal in my Dime Savings money market promotion review.

Another liquid account in my short-term CD list is Capital One Bank. It has been heavily advertising its checking account special for new customers in the Austin metro area. The rate is 1.50% APY guaranteed for 12 months after the account is opened. Back in 2007 they had a similar deal but the APY was 5.00%. They must be hungry to increase their market share in Austin.

One other note on the short-term CDs, the 1.50% APY 15-month CD special at State Bank of India (California) is scheduled to end July 31st. So next week will be the last week. It's available to many residents through out California and in Washington DC.

For the longer-term CDs, the only changes were a few rate cuts. The rates on CD specials were cut at University of Iowa Community Credit Union and Vermont Federal Credit Union.

There's now only one 3.00% CD for terms under 5 years (3.00% APY 4-year CD at UniBank in MA). There continues to be a few 5-year CDs around the country with a 3.00% APY, but these are rare. I have two 5-year CDs with rates over 3.00%, but they're not available to many people.

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. The Friday blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The Friday blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but most of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available for an entire state.

Yields Accurate as of 7/22/2011

Under 1-Year CD Rates

• Ally Bank - 1.55% (2.33% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.50% 6-month CD with active checking account
• Bank of Internet USA - 1.15% 6 to 11 months CD
• Ally Bank - 1.13% 11-month No-Penalty CD
• Incredible Bank - 1.10% 9-month internet CD

• Noteworthy Local Deals

• Dime Savings Bank - 1.75% MMA with rate guaranteed for 6 months (New York State 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)
• First Choice Bank - 1.25% ($50K) 1.20% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
• Washington Federal Bank for Savings - 1.15% 9-month CD (Chicago)

1-Year CD Rates

• Ally Bank - 1.94% (2.33% 5-year CD closed after 1 year, see review & risks)
• Connexus Credit Union - 1.75% 12-month CD with active checking account
• iGObanking.com - 1.73% (3.50% 10-year CD closed after 1 year, see review & risks)
• Bank of Internet USA - 1.33% 12 to 23 months CD
• Melrose Credit Union - 1.31% 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)
• Chasewood Bank - 1.51% ($100K) 1.41% ($1K) 1-year CD (Houston)
• 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)
• Alma Bank - 1.35% 12-month Liquid CD (New York City)
• First Choice Bank - 1.35% ($50K) 1.30% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)

18-month CD Rates

• iGObanking.com - 2.32% (3.50% 10-year CD closed after 18 months, see review & risks)
• Ally Bank - 2.07% (2.33% 5-year CD closed after 18 months, see review & risks)
• Alliant Credit Union - 1.55% ($25K min) 18-month CD
• Incredible Bank - 1.50% 19-month CD

• Noteworthy Local Deals

• Focus Bank - 1.61% 19-month CD (online application for MO, AR, KY, TN & parts of IL)
• First Choice Bank - 1.60% ($50K) 1.50% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)
• 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)
• Chasewood Bank - 1.51% ($100K) 1.41% ($1K) 18-month CD (Houston)
• Borrego Springs Bank - 1.50% ($100K) 18-month CD (San Diego)

2-Year CD Rates

• iGObanking.com - 2.61% (3.50% 10-year CD closed after 2 years, see review & risks)
• Ally Bank - 2.13% (2.33% 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% ($250K) 2.15% ($100K) 2.05% ($1K) 25-month CD (several parts of Iowa)
• Community Bank of Tri-County - 2.22% 22-month CD (Southern Maryland)
• NavyArmy Federal Credit Union - 2.00% ($100K) 1.85% ($1K) 2-year CD (Corpus Christi, TX metro)
• Chasewood Bank - 1.91% ($100K) 1.76% ($1K) 2-year CD (Houston)
• 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

• iGObanking.com - 2.91% (3.50% 10-year CD closed after 3 years, see review & risks)
• Ally Bank - 2.20% (2.33% 5-year CD closed after 3 years, see review & risks)
• Fort Knox Federal Credit Union - 2.15% 3-year CD
• University Federal Credit Union - 2.08% 3-year web CD
• airbanking (MainStreet) - 2.00% 3-year CD

• Noteworthy Local Deals

• El Paso Area Teachers Federal Credit Union - 2.68% ($50K) 2.57% ($500) 30-month & 3-year CD (El Paso, TX)
• University of Iowa Community Credit Union - 2.60% ($250K) 2.50% ($100K) 2.40% ($1K) 37-month CD (several parts of Iowa)
• 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)
• Community Bank of Tri-County - 2.35% 3-year CD (Southern Maryland)
• Atlas Bank - 2.33% 3-year CD (New York City)
• EBSB Direct - 2.25% 3-year CD (New England and New York State)
• Meritrust Credit Union - 2.25% 3-year CD (Several Kansas counties)

4-Year CD Rates

• iGObanking.com - 3.06% (3.50% 10-year CD closed after 4 years, see review & risks)
• airbanking (MainStreet) - 2.50% 4-year CD
• Alliant Credit Union - 2.45% ($25K min) 4-year CD

• Noteworthy Local Deals

• UniBank - 3.00% 4-year CD (parts of MA)
• University of Iowa Community Credit Union - 2.95% ($250K) 2.85% ($100K) 2.75% ($1K) 49-month CD (several parts of Iowa)
• Bayer Heritage Federal Credit Union - 2.91% 4-year CD (parts of WV, OH & SC)
• 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)
• EECU (Credit Union) - 2.55% ($50K) 2.50% ($1K) 4-year CD (Fort Worth metro)
• Police & Fire Federal Credit Union - 2.50% 4-year CD (in Philly, available to all PA)
• 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

• iGObanking.com - 3.14% (3.50% 10-year CD closed after 5 years, see review & risks)
• Connexus Credit Union - 3.00% 5-year CD with active checking account
• University Federal Credit Union - 2.83% 5-year web CD
• airbanking (MainStreet) - 2.60% 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 - 3.17% 5-year CD (parts of WV, OH & SC)
• Institution for Savings - 3.00% ($500) 5-year CD (north of Boston)
• Police & Fire Federal Credit Union - 3.00% 5-year CD (in Philly, available to all PA)
• Security Service Federal Credit Union - 3.00% ($100K) 5-year CD (parts of Texas & Colorado)
• Meritrust Credit Union - 3.00% 5-year CD (Several Kansas counties)
• 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)
• 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

• iGObanking.com - 3.50% 10-year CD
• Navy Federal Credit Union - 3.20% ($20K) 7-year CD (membership restrictions)
• iGObanking.com - 3.00% 7-year CD

• Noteworthy Local Deals

• SACU - 4.09% ($90K) 4.00% ($10K) 10-year (San Antonio, TX)
• SACU - 3.55% ($90K) 3.45% ($10K) 7-year (San Antonio, TX)
• Security Service Federal Credit Union - 3.50% ($100K) 7-year CD (parts of Texas & Colorado)
• Randolph-Brooks Federal Credit Union - 3.45% ($75K) 3.40% ($20K) 7-year CD (San Antonio & Austin, TX)
• First Federal - 3.25% ($100K) 8-year CD (Southeast MS)
• NVE Savings Bank - 3.00% 6-year CD (in Northeast NJ)
• BOK Financial Banks - 2.65% ($100K w/chk) 2.50% ($1K w/o chk) 7-year CD (in AZ, rates vary slightly in CO, KS, MO, NM, OK & TX)
• Third Federal - 2.50% 6-year CD (in SE & SW Florida, Ohio)

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

Tags: CD rates