Survey of the Best CD Rates for September 2, 2011

I was concerned that we would see many rate cuts at the start of September. Some rates did fall, but many banks and credit unions on my list have kept their rates the same. There was even one pleasant surprise this week. Melrose Credit Union actually increased its CD rates. Rates for all of its CD terms increased by 10 basis points.

There were some rate cuts. As has been typical, Ally Bank continues its small rate cuts. The 5-year CD rate went down once again. This week the APY fell from 2.19% to 2.17%.

Another disappointment was the rate cuts at University Federal Credit Union. It was on top of my nationwide lists for 5-year and 3-year terms, but after yesterday, its CD rates are off my lists. Its 5-year web CD APY fell from 2.83% to 2.25% and the 3-year web CD APY fell from 2.08% to 1.75%. Melrose Credit Union's 5-year CD is now back on top with the highest rate (2.68% APY).

Most of the CD rate cuts in the last few weeks seem to be on the longer terms. Discover Bank cut its 7-year and 5-year CD rates by 15 basis points this week. The 7-year CD APY is now 2.45%. Fortunately, Discover Bank continues to offer 3.00% APY on its 10-year CD, and if you're a AAA member, you can get 3.05% APY (see my AAA/Discover Bank review). Last week I compared Discover's 10-year CD with Ally's 5-year CD and did another review of the risks of these CDs in my post, Long-Term CD Strategy Review.

If you don't want a 10-year term, it's hard to find 3% APY for shorter terms. Navy Federal continues to offer 3.00% APY on its 7-year CD ($20K minimum), but you must have some military connection to join. There are still some local deals with 3.00% APY for 5-year and 7-year terms. However, we lost some of these deals this week. An Indiana credit union and a Mississippi bank had been offering rates around 3.00% on terms from 6 to 8 years, but the yields of both CDs fell to 2.50% this week.

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 8:00am EDT Sep 2, 2011

Under 1-Year CD Rates

• Ally Bank - 1.44% (2.17% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.25% 6-month CD with active checking account
• Ally Bank - 1.08% 11-month No-Penalty CD
• AloStar Bank - 1.05% 6-month CD

• Noteworthy Local Deals

• Five Star Bank - 2.05% 7-11 month CD, req chk (Rochester, NY)
• Your Community Credit Union - 2.00% ($25K max) 6-month CD (Dallas & Houston)
• Marathon National Bank - 1.35% 7-year Liquid CD (New York City)
• Alma Bank - 1.35% 12-month Liquid CD (New York City)
• Industrial Credit Union - 1.30% 6-month CD (Boston 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 - 1.81% (2.17% 5-year CD closed after 1 year, see review & risks)
• Connexus Credit Union - 1.50% 12-month CD with active checking account
• Alliant Credit Union - 1.30% ($25K min) 1-year CD
• Sallie Mae Bank - 1.20% 1-year CD

• Noteworthy Local Deals

• El Paso Area Teachers Federal Credit Union - 1.61% ($50K) 1.51% ($500) 1-year CD (El Paso, TX)
• NavyArmy Federal Credit Union - 1.60% ($100K) 1.50% ($1K) 12-month CD (Corpus Christi, TX metro)
• 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)
• Industrial Credit Union - 1.50% 12-month CD (Boston metro area)
• 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)

18-month CD Rates

• Ally Bank - 1.93% (2.17% 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)
• Chasewood Bank - 1.51% ($100K) 1.41% ($1K) 18-month CD (Houston)
• Industrial Credit Union - 1.50% 18-month CD (Boston metro area)

2-Year CD Rates

• Ally Bank - 1.99% (2.17% 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)
• airbanking (MainStreet) - 1.50% 2-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)
• El Paso Area Teachers Federal Credit Union - 1.96% ($50K) 1.86% ($500) 2-year CD (El Paso, TX)
• 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)
• 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)
• Community Bank of Tri-County - 1.65% 2-year CD (Southern Maryland)
• Industrial Credit Union - 1.65% 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 - 2.05% (2.17% 5-year CD closed after 3 years, see review & risks)
• Velocity Credit Union - 1.91% 3-year CD
• airbanking (MainStreet) - 1.90% 3-year CD

• Noteworthy Local Deals

• El Paso Area Teachers Federal Credit Union - 2.83% ($50K) 2.73% ($500) 30-month & 3-year CD (El Paso, TX)
• 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)
• 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)
• Community Bank of Tri-County - 2.10% 3-year CD (Southern Maryland)
• 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)
• John Marshall Bank - 2.02% 3-year CD (Washington DC Metro)
• 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)
• airbanking (MainStreet) - 2.40% 4-year CD
• Velocity Credit Union - 2.29% (2.62% 5-year CD closed after 4 years, see risks)

• Noteworthy Local Deals

• El Paso Area Teachers Federal Credit Union - 2.83% ($50K) 2.73% ($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)
• Clinton Savings Bank - 2.51% 51-month CD (Massachusetts)
• John Marshall Bank - 2.48% 4-year CD (Washington DC Metro)
• American Heritage Credit Union - 2.40% 4-year CD (Philadelphia)
• Industrial Credit Union - 2.40% 4-year CD (Boston metro area)

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)
• airbanking (MainStreet) - 2.50% 5-year CD

• Noteworthy Local Deals

• El Paso Area Teachers Federal Credit Union - 3.55% ($50K) 3.44% ($500) 5-year CD (El Paso, TX)
• Texas Dow Employees Credit Union - 3.25% ($100K) 3.00% ($1K) 5-year CD (in parts of Houston metro)
• Security Service Federal Credit Union - 3.00% ($100K) 2.85% ($500) 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)
• 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)
• Wings Financial Credit Union - 2.73% 5-year CD (Seattle & Minneapolis Metro areas)
• Industrial Credit Union - 2.65% 5-year CD (Boston metro area)

Over 5-Year CD Rates

• Apple Federal Credit Union - 3.20% 10-year CD
• Discover Bank - 3.00% 10-year CD (3.05% AAA members)
• Navy Federal Credit Union - 3.00% ($20K) 7-year CD (membership restrictions)
• Pentagon Federal Credit Union - 2.75% 7-year CD

• Noteworthy Local Deals

• SACU - 3.85% ($90K) 3.80% ($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 - 3.30% ($100K) 3.25% ($10K) 7-year (San Antonio, TX)
• Teachers Credit Union - 2.50% 71-month CD (parts of Indiana)
• First Federal - 2.50% ($100K) 8-year CD (Southeast MS)
• 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