Survey of the Best CD Rates for September 9, 2011
I'm afraid this interest rate environment continues to worsen for savers. This WSJ MarketBeat blog post describes what happened in the Treasury market today, and suggests where we are headed:
America continues to turn Japanese: The 10-year Treasury note’s yield closed at 1.917% today, the lowest since at least the 1940s.
This will likely put more pressure on the banks and credit unions to lower CD rates.
We saw more rate cuts at Ally Bank this week. Ally's 5-year CD rate was cut twice. From last Friday, the APY fell from 2.17% to 2.11%. In addition, its 11-month No-Penalty CD APY fell from 1.08% to 1.06%.
3% CD yields continue to disappear. The latest one was Navy Federal Credit Union's 7-year CD for a $20K minimum. This week that APY fell from 3.00% to 2.90%.
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). I did another early withdrawal CD comparison of this CD with Ally's 5-year CD (before the latest rate cut). In addition, I included one of the best 5-year CDs at an all-access credit union. As I've mentioned, there are risks with depending on early withdrawals on long-term CDs. However, as we have seen this year, there's also the risk that rates will continue to fall and stay very low for many years.
If you're lucky, you may still be able to get a 3% CD at a local bank or credit union. I still have a few on my list with terms from 5 to 10 years. I added one new 3% 7-year CD this week. It's being offered by Malvern Federal Savings Bank in the western suburbs of Philadelphia.
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 9, 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
- Ally Bank - 1.06% 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)
- 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)
- 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)
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
- 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)
- Industrial Credit Union - 1.50% 12-month CD (Boston metro area)
- 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)
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 - 1.50% 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)
- 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)
- 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 - 1.65% 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 - 1.99% (2.11% 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)
- 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)
- 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)
- 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)
- 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)
- 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)
- 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 - 2.90% ($20K) 7-year CD (membership restrictions)
- 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.
Anonymous - #1, Friday, September 9, 2011 - 7:30 PM
In 2008and 2009, I recall many people reading this BLOG just did not want to take long term CD rates of 5% or even 4.50%, in turn thinking that--they can always do better if they wait---I looked back over 20 yrs of rates--and decided that there was never a time in 20 yrs where one got a 5% return for more than 1-2 yrs in a time frame--so if you can get 4-5% on your money for 5-10ys Cds--who would ever turn that down--that attitude of "rates will go up and I can miss out" has come back to haunt most of your readers. If you see 5%--take it--and be happy!! Who cares if you have a 5 -10 yr CD at 4-5% and rates go up for 2 of the years or 3 of the years to 7 or 8%--the time in between will eat away at your principle--which in turn--makes those higher rates much less--basically--if any of my Cd's mature--I will grab the 3% for 10 yrs---and be happy---people are living in a dream world if they think one day they will wake up and int. rates will 5-8% anytime in the next 7 yrs----I planned my finances for the year 2018 where rates will be 5% again--
Pablo Savin (anonymous) - #2, Friday, September 9, 2011 - 10:47 PM
You got that right. I have over twenty CDs spread out from next month to ten years out. Even after this years CDs come due and I go for the 3.2 for 10 years, I will be averaging 4.5 percent. They will go back up, hopefully. But no for five years. Ken , your site has been a blessing.
Anonymous - #3, Friday, September 9, 2011 - 11:45 PM
Poster #1
Agree! I took advantage of Pentagon's 5% 10-year special last year, and purchased $250K CDs and $250K CD, IRA.
lou - #4, Saturday, September 10, 2011 - 5:13 AM
Pablo, the ten year 3.2% CD you referred to in your post is not one of the CDs in Ken's list. Which bank or credit union is offering this CD.
lou - #5, Saturday, September 10, 2011 - 5:33 AM
Pablo, I just noticed the Apple CD, which I imagine is the one you're referring to. To bad for the harsh EWP
Anonymous - #7, Saturday, September 10, 2011 - 7:35 AM
I agree that one should grab all 5% CDs, but to suggest someone should give banker globalists money @ 3% is just pure BS. Why not just give them your money for free?
If FOOLS stopped giving away their money @ these ridiculous rates, yields would rise. If you have an endless supply of sheople who play into their hands, then yes rates will NEVER rise.
Anonymous - #10, Saturday, September 10, 2011 - 2:40 PM
It seems apple fcu changed EWP. From their site: If a certificate is redeemed prior to the maturity date the following penalty will apply: If the term is 6 months or less – the lesser of dividends earned since issuance or renewal or 90 days dividends; if the term is over 6 months to 60 months – the lesser of dividends earned since issuance or renewal or 180 days dividends; if the term is greater than 60 months –the lesser of dividends earned since issuance or renewal or 365 days dividends.
Pablo Savin (anonymous) - #11, Saturday, September 10, 2011 - 7:22 PM
Listen, I know 3.2 percent is not great, but I am not a sheep or a sheople. The financial managers who come to sell me their plans would like me to be a sheep with their fancy charts and the comment " historically the market has done...." The stuff going on now has never happened in the history of this country, from terror to no shame for not paying your bills. I had a man tell me 30 years ago " I don't care where you invest your money but save twenty percent of your pay" if you can't save 20 percent working five days, work six days. If you can't afford child and still save twenty percent don't have a child. Also told me " your friends don't pay your bills, don't buy things to impress anyone." So no I am not a sheep and 3.2 percent is not great, hopefully it is a bump in the road. And yes Apple is where I have parked some money. Thanks dad.
The Old Grey Mare (anonymous) - #16, Monday, September 12, 2011 - 5:13 PM
I worked and saved my whole life to have a nest egg and live on the interest. I don't even earn enough now to pay my health insurance. The greedy disinterest of the power in this country for the elderly and the thrifty is truly evil.
educated persona (anonymous) - #17, Monday, September 12, 2011 - 6:41 PM
the greedy disinterest of the power in this country for the elderly and the thrifty is truly evil what does that mean? any clue? and I defer to the learnerd likes of rhett and shore break the favour brit speak is appreciated
Anonymous - #18, Monday, September 12, 2011 - 9:09 PM
#16 I couldn't say it better myself and I have to our unleaders in Washington. However, it just goes on deaf ears. They want people to spend more but they act like the savers are not even "people". That black cloud over us seems to be getting even darker, imo.
Add Your Comment
Post a Comment