Survey of the Best CD Rates for September 16, 2011

CD rates continued to trend down this week. There's now only one nationally available CD with a 3% APY. Apple Federal Credit Union reduced its 10-year CD APY from 3.20% to 2.80%. That leaves Discover Bank's 10-year CD as the only 3 percent CD. A 10-year term is long, but as I described in my latest long-term CD comparison, the reasonable early withdrawal penalty helps make this a better deal.

I'm glad to report Ally Bank's 5-year CD rate held this week. The APY remains at 2.11%. In previous weeks it had been falling a few basis points every few days. Not all of Ally's CD rates held this week. Rate cuts occurred on Ally's 11-month no-penalty CD (1.06% to 1.03%) and on the 4-year Raise Your Rate CD (1.80% to 1.75%).

Another disappointment this week was at airbanking, the new internet bank from MainStreet Bank. It had the best bank rates for terms from 2 to 5 years. The most competitive one was its 4-year CD which had a 2.40% APY. All of its rates were slashed this week. The 4-year CD APY had the biggest fall. It's now 2.00%, but it turns out this 2.00% APY is still a top rate for banks so I kept it on the 4-year list.

The all-access credit unions like Alliant, Velocity and Melrose currently have CD rates much higher than what any of the internet banks offer. For banks, the highest nationally available 5-year CD rate is 2.42% APY at Urban Partnership Bank (see my review). For credit unions, Melrose Credit Union has the top spot with a 2.68% APY.

There are still a few credit unions with local fields of membership that offer 3 percent CDs. If you're looking for long-term CDs in Texas, you're fortunate. You can find 3 percent CDs in Houston, San Antonio, Austin and El Paso. I added one Houston credit union today that's offering 3.05% APY for a 5-year CD. Outside of Texas, the only other places on my lists with 3 percent CDs are Colorado and Pennsylvania. You can find 3 percent CDs in other states if you use our CD rate tables, but many are in low populated regions or at credit unions with narrow fields of membership in which few people will be eligible to join.

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 in large areas of a state.

Yields Accurate as of Sep 16, 2011

Under 1-Year CD Rates

• Ally Bank - 1.40% (2.11% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.25% 6-month CD with active checking account
• AloStar Bank - 1.05% 6-month CD
• Ally Bank - 1.03% 11-month No-Penalty CD

• Noteworthy Local Deals

• Marathon National Bank - 1.35% 7-year Liquid CD (New York City)
• Alma Bank - 1.35% 12-month Liquid CD (New York City)
• 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)
• Chasewood Bank - 1.16% 6-month CD (Houston)
• Washington Federal Bank for Savings - 1.15% 9-month CD (Chicago)
• Community Bank of Tri-County - 1.15% 4-month CD (Southern Maryland)
• Industrial Credit Union - 1.15% 6-month CD (Boston metro area)

1-Year CD Rates

• Ally Bank - 1.76% (2.11% 5-year CD closed after 1 year, see review & risks)
• Connexus Credit Union - 1.50% 1-year CD with active checking account
• Alliant Credit Union - 1.30% ($25K min) 1-year CD
• AloStar Bank - 1.21% 1-year CD

• Noteworthy Local Deals

• NavyArmy Federal Credit Union - 1.60% ($100K) 1.50% ($1K) 12-month CD (Corpus Christi, TX metro)
• El Paso Area Teachers Federal Credit Union - 1.56% ($50K) 1.46% ($500) 1-year CD (El Paso, TX)
• Credit Union of Atlanta - 1.53% 12-month CD (parts of Atlanta, Georgia)
• General Electric Credit Union - 1.42% ($100K) 1-year CD (Cincinnati OH metro)
• 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)
• Industrial Credit Union - 1.25% 12-month CD (Boston metro area)

18-month CD Rates

• Ally Bank - 1.87% (2.11% 5-year CD closed after 18 months, see review & risks)
• Velocity Credit Union - 1.74% (2.62% 5-year CD closed after 18 months, see risks)
• Alliant Credit Union - 1.55% ($25K min) 18-month CD
• Discover Bank - 1.49% (3.00% 10-year CD closed after 18 months, see risks)
• CNB Bank Direct - 1.35% ($25K min) 18-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)
• Signature Bank - 1.51% 18-month CD (NYC Metro)
• Industrial Credit Union - 1.25% 18-month CD (Boston metro area)

2-Year CD Rates

• Ally Bank - 1.93% (2.11% 5-year CD closed after 2 years, see review & risks)
• Velocity Credit Union - 1.96% (2.62% 5-year CD closed after 2 years, see risks)
• Discover Bank - 1.86% (3.00% 10-year CD closed after 2 years, see risks)
• Alliant Credit Union - 1.70% ($25K min) 1-year CD
• CNB Bank Direct - 1.50% ($25K min) 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)
• Wings Financial Credit Union - 1.81% 2-year CD (Seattle & Minneapolis Metro areas)
• Signature Bank - 1.76% 2-year CD (NYC Metro)
• Alaska USA Federal Credit Union - 1.75% ($100K) 1.55% ($10K) 2-year CD (San Bernardino County, CA; parts of WA & AK)
• Industrial Credit Union - 1.50% 2-year CD (Boston metro area)

3-Year CD Rates

• Discover Bank - 2.24% (3.00% 10-year CD closed after 3 years, see risks)
• Velocity Credit Union - 2.18% (2.62% 5-year CD closed after 3 years, see risks)
• Ally Bank - 1.99% (2.11% 5-year CD closed after 3 years, see review & risks)
• Velocity Credit Union - 1.91% 3-year CD
• Alliant Credit Union - 1.90% ($25K min) 1-year CD
• Discover Bank - 1.70% 3-year CD

• Noteworthy Local Deals

• Credit Union of Atlanta - 2.52% 3-year CD (parts of Atlanta, Georgia)
• Institution for Savings - 2.50% 40-month CD (northeast MA)
• El Paso Area Teachers Federal Credit Union - 2.47% ($50K) 2.37% ($500) 30-month & 3-year CD (El Paso, TX)
• 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)
• Signature Bank - 2.27% 3-year CD (NYC Metro)
• Security Service Federal Credit Union - 2.15% ($100K) 2.00% ($500) 3-year CD (parts of Texas & Colorado)
• Alaska USA Federal Credit Union - 2.10% ($100K) 2.00% ($10K) 3-year CD (San Bernardino County, CA; parts of WA & AK)
• HAPO Community Credit Union - 2.10% 3-year CD (WA State)
• Wings Financial Credit Union - 2.07% 3-year CD (Seattle & Minneapolis Metro areas)
• Community Bank of Tri-County - 2.05% 3-year CD (Southern Maryland)
• Broward Bank of Commerce - 1.92% 3-year CD (South Florida)

4-Year CD Rates

• Alliant Credit Union - 2.45% ($25K min) 4-year CD
• Discover Bank - 2.43% (3.00% 10-year CD closed after 4 years, see risks)
• Velocity Credit Union - 2.29% (2.62% 5-year CD closed after 4 years, see risks)
• airbanking (MainStreet) - 2.00% 4-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.70% ($250K) 2.60% ($100K) 2.50% ($1K) 49-month CD (several parts of Iowa)
• El Paso Area Teachers Federal Credit Union - 2.47% ($50K) 2.37% ($500) 4-year CD (El Paso, TX)
• American Heritage Credit Union - 2.40% 4-year CD (Philadelphia)
• First Choice Bank - 2.10% ($50K) 2.00% ($2.5K) 4-year CD (Los Angeles & Orange County, CA)

5-Year CD Rates

• Melrose Credit Union - 2.68% 5-year CD
• Velocity Credit Union - 2.62% 5-year CD
• Discover Bank - 2.54% (3.00% 10-year CD closed after 5 years, see risks)
• Urban Partnership Bank - 2.42% 5-year CD

• Noteworthy Local Deals

• Texas Dow Employees Credit Union - 3.25% ($100K) 3.00% ($1K) 5-year CD (in parts of Houston metro)
• El Paso Area Teachers Federal Credit Union - 3.19% ($50K) 3.08% ($500) 5-year CD (El Paso, TX)
• SPCO Credit Union - 3.05% ($50K) 2.87% ($1K) 5-year CD (Houston, TX)
• Security Service Federal Credit Union - 3.00% ($100K) 2.85% ($500) 5-year CD (parts of Texas & Colorado)
• Credit Union of Atlanta - 2.78% 5-year CD (parts of Atlanta, Georgia)
• American Heritage Credit Union - 2.75% 5-year CD (Philadelphia)
• 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)
• First General Credit Union - 2.75% 5-year CD (Grand Rapids, MI metro)
• Wings Financial Credit Union - 2.73% 5-year CD (Seattle & Minneapolis Metro areas)

Over 5-Year CD Rates

• Discover Bank - 3.00% 10-year CD (3.05% AAA members)
• Navy Federal Credit Union - 2.90% ($20K) 7-year CD (membership restrictions)
• Apple Federal Credit Union - 2.80% 10-year CD
• Pentagon Federal Credit Union - 2.75% 7-year CD

• Noteworthy Local Deals

• SACU - 3.80% ($90K) 3.70% ($10K) 10-year (San Antonio, TX)
• Security Service Federal Credit Union - 3.50% ($100K) 3.35% ($500) 7-year CD (parts of Texas & Colorado)
• Randolph-Brooks Federal Credit Union - 3.40% ($75K) 3.35% ($20K) 7-year CD (San Antonio & Austin, TX)
• SACU - 3.25% ($100K) 3.15% ($10K) 7-year (San Antonio, TX)
• Malvern Federal Savings Bank - 3.00% 7-year (East Pennsylvania)
• Teachers Credit Union - 2.50% 71-month CD (parts of Indiana)
• Third Federal - 2.40% 6-year CD (in SE & SW Florida, Ohio)

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