Survey of the Best CD Rates for August 5, 2011

There were quite a few CD rate cuts in the last two weeks. Last week before the debt ceiling deal, there was speculation that CD rates may actually rise due to Treasury yields being forced up from the possibility of the U.S. defaulting. With the passing of the debt ceiling deal and the crashing stock market, Treasury yields have actually plummeted. So I'm afraid CD rates will likely continue their downward trend.

For nationally available CDs, Ally Bank just cut its 5-year CD rate by 2 basis points. The 5-year APY is now 2.30%.

For short-term CDs, Bank of Internet cut its 12-month and 6-month CD rates. The 12-month CD APY fell from 1.33% to 1.20% and the 6-month CD APY fell from 1.15% to 1.01%. Since these new rates are no longer top rates, I've removed BofI from my list.

Update: iGObanking.com cut its 10-year CD APY from 3.50% to 3.25% right after I first released the blog post this morning. The good news is that iGObanking.com continues to offer its 3.50% APY 10-year CD. Also, several credit unions have maintained their CD rates into August. These include Alliant, Melrose, Fort Knox and Self-Help.

Even with the latest rate cut, Ally Bank's 5-year CD continues to be a good deal compared to short-term CDs due to Ally's mild early withdrawal penalty. For terms longer than 12 months, iGObanking's CD beats Ally on this long-term CD strategy. iGObanking's 10-year CD has a 3.25% 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

There were several banks and credit unions which cut rates or ended CD specials in the last two weeks. I'll just highlight some new local CD deals and some old ones that are still very good deals.

Signature Bank in the New York City metro area has very competitive rates on its 2-year, 3-year and 5-year CDs. Its 5-year CD APY of 3.04% is near the top of my list.

HAPO Community Credit Union in Washington State is offering competitive short-term CD rates with a 1.35% APY 1-year CD and a 1.25% APY 6-month CD. The credit union allows anyone in WA to join.

Several credit unions maintained their CD rates into August. One noteworthy one is Wings Financial Credit Union which is offering a 1.81% APY 2-year CD and a 2.73% APY 5-year CD. Another one is Alaska USA Federal Credit Union which allows anyone in San Bernardino County, California to join. It continues to offer very competitive Jumbo CD rates for terms of 18 months, 24 months and 60 months. One final noteworthy credit union that maintained its CD rates into August is Police & Fire Federal Credit Union. It's still offering a 3.00% APY 5-year CD. Anyone in PA can qualify for membership by joining an association.

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 many 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 Aug 5, 2011

Under 1-Year CD Rates

• Ally Bank - 1.53% (2.30% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.50% 6-month CD with active checking account
• Dime Savings Bank - 1.25% 10-month CD with checking account
• Ally Bank - 1.13% 11-month No-Penalty CD
• Incredible Bank - 1.10% 9-month internet CD

• Noteworthy Local Deals

• Industrial Credit Union - 1.40% 6-month CD (Boston metro area)
• Alma Bank - 1.35% 12-month Liquid CD (New York City)
• Capital One Bank - 1.30% checking with rate guaranteed for 12 months (Austin metro area)
• Community Bank of Tri-County - 1.30% 4-month CD (Southern Maryland)
• HAPO Community Credit Union - 1.25% 6-month CD (WA State)
• 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 - 1.91% (2.30% 5-year CD closed after 1 year, see review & risks)
• Connexus Credit Union - 1.75% 12-month CD with active checking account
• iGObanking.com - 1.61% (3.25% 10-year CD closed after 1 year, see review & risks)
• Melrose Credit Union - 1.31% 12-month CD
• Incredible Bank - 1.30% 13-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)
• 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)
• HAPO Community Credit Union - 1.35% 12-month CD (WA State)
• Capital One Bank - 1.30% checking with rate guaranteed for 12 months (Austin metro area)

18-month CD Rates

• iGObanking.com - 2.17% (3.25% 10-year CD closed after 18 months, see review & risks)
• Ally Bank - 2.04% (2.30% 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)

2-Year CD Rates

• iGObanking.com - 2.43% (3.25% 10-year CD closed after 2 years, see review & risks)
• Ally Bank - 2.11% (2.30% 5-year CD closed after 2 years, see review & risks)
• Self-Help Credit Union - 1.77% 2-year CD
• airbanking (MainStreet) - 1.50% 2-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.00% ($250K) 1.90% ($100K) 1.80% ($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)
• Signature Bank - 1.87% 2-year CD (NYC 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)
• Community Bank of Tri-County - 1.75% 22-month CD (Southern Maryland)
• 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 - 2.70% (3.25% 10-year CD closed after 3 years, see review & risks)
• Ally Bank - 2.17% (2.30% 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)
• Signature Bank - 2.53% 3-year CD (NYC Metro)
• Credit Union of Atlanta - 2.52% 3-year CD (parts of Atlanta, Georgia)
• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 37-month CD (several parts of Iowa)
• Atlas Bank - 2.33% 3-year CD (New York City)
• EBSB Direct - 2.25% 3-year CD (New England and New York State)
• Community Bank of Tri-County - 2.20% 3-year CD (Southern Maryland)

4-Year CD Rates

• iGObanking.com - 2.84% (3.25% 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

• El Paso Area Teachers Federal Credit Union - 2.78% ($50K) 2.68% ($500) 4-year CD (El Paso, TX)
• University of Iowa Community Credit Union - 2.70% ($250K) 2.60% ($100K) 2.50% ($1K) 49-month CD (several parts of Iowa)
• 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 - 2.92% (3.25% 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)
• Signature Bank - 3.04% 5-year CD (NYC Metro)
• 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)
• 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)
• 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 - 3.25% 10-year CD
• Navy Federal Credit Union - 3.00% ($20K) 7-year CD (membership restrictions)
• iGObanking.com - 2.75% 7-year CD

• Noteworthy Local Deals

• SACU - 4.09% ($90K) 4.00% ($10K) 10-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)
• SACU - 3.40% ($10K) 7-year (San Antonio, TX)
• First Federal - 3.25% ($100K) 8-year CD (Southeast MS)
• NVE Savings Bank - 3.00% 6-year CD (in Northeast NJ)
• Third Federal - 2.50% 6-year CD (in SE & SW Florida, Ohio)
• BOK Financial Banks - 2.45% ($100K w/chk) 2.30% ($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.

Edit 1:12pm EDT iGObanking.com reduced its 10-year yield from 3.50% to 3.25% after the first release of this blog post this morning. The above rates have been adjusted for the new 3.25% APY.