Top CD Rates at LOMTO Federal Credit Union in New York City - Local Only

LOMTO Federal Credit Union continues to offer some of the best CD rates in New York City. The following rates are listed in the credit union's certificates of deposit page as of 7/5/2011:

• 1.15% APY 6 months
• 1.41% APY 1 year
• 1.85% APY 2 years
• 2.25% APY 3 years
• 2.60% APY 4 years
• 2.95% APY 5 years

Minimum deposit is $2,000. Terms from 1 to 5 years are also available in IRA certificates. When I last contacted this credit union, I was told that the early withdrawal penalty for the longer term CDs is 6 months of interest (earned or unearned).

Membership

LOTMO FCU membership is open to anyone who lives, works, worships, attends school in parts of the west side of Manhattan. Please refer to the credit union's membership page for more details. Credit union membership requires a $3 fee and a minimum deposit of $25 in your share savings account. You can also be eligible for membership via family and via membership in LOMTO Inc. which according to one reader is not worth joining unless you're a cab driver. Please refer to the LOMTO Inc. membership page for more details.

Branches are located in New York City and in Woodside.

The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 0.77% (excellent) based on March 2011 data. Please refer to our financial overview of LOMTO Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 1532).

Best CD Rates in New York City

As I mentioned last year, New York City has several small credit unions which offer very competitive CD rates. However, two of these credit unions, Montauk Credit Union and Bay Ridge FCU, have recently fallen off the list after slashing their CD rates. There are two that still have 5-year CD yields over 3% as of 7/5/2011, but both have restrictive membership. One of these is Progressive Credit Union which requires a letter of recommendation from an existing member. The other is Self Reliance New York Federal Credit Union which is only open to members of the Selfreliance Association of American Ukrainians. As commenters noted the association makes it tough to qualify.

Best CD Rates Nationally Available

For nationally available 5-year CD rates, the best is 3.00% APY at Connexus Credit Union which requires an active checking account. Without the checking requirement, the best rate is 2.83% APY at University Federal Credit Union and Melrose Credit Union. Rates are accurate as of 7/5/2011.

Searching for the Best CD and IRA CD Rates

To search for the best nationwide rates and the best rates in your state, please refer to the following tables at DepositAccounts.com:

• Best CD rates
• Best IRA CD rates