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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Survey of the Best CD Rates for October 7, 2011

POSTED ON BY

With the start of a new month, there were a few banks and credit unions which reduced their CD rates this week. One disappointment was Alliant Credit Union which reduced its Jumbo CD rate ($25K minimum) for terms of 48 to 60 months from 2.45% to 2.20% APY. This 2.45% APY had held since May 10th. At least the rates on its other terms remained the same.

As usual, Ally Bank did another small yield reduction of its 5-year CD. The APY fell from 2.04% to 2.03%. One tiny bit of good news is that Ally's 11-month no-penalty CD APY increased from 1.00% to 1.01%. In today's rate environment, even a one-basis point rate increase is good news.

I added a few new credit unions and banks to the nationwide lists. First, I added Digital Credit Union. It's another all-access credit union that anyone can qualify for by joining an association. Several of its CDs took the top spot for the nationally available CDs. However, these top rates require a checking account relationship. Without the relationship, the rates are 25 basis points lower. As I described in my DCU review, the checking relationship isn't too much of a hassle. So it's an option for those looking at all possibilities of maximizing their no-risk yields.

Another addition this week is 5 Star Bank. It took the top spot for nationally available 5-year bank CD. It's a small bank in Colorado, but I confirmed today that the CDs are available nationwide. Its 5-year CD replaces AmTrustDirect's 5-year CD which had a large rate cut this week.

I was hoping to add more banks and credit unions to the lists. I found a few new ones this week with some top CD rates, but I'm afraid the rates didn't last to Friday. It doesn't take too much demand these days to make a small bank or credit union aware that they have a CD rate that's too competitive.

One interesting thing to note is how big the spread is between the bank and credit union rates. For example, the best credit union 5-year CD rate is 60 basis points above the best bank 5-year CD rate. I'm glad we have credit unions, and I'm glad many credit unions make it easy to join. However, even credit unions can't keep high rates in this environment. Several of the 3-percent-plus long-term CD rates at credit unions went down this week. The highest CD rate in the nation is now 3.35% APY at Randolph-Brooks FCU (7-year $75K minimum) and at San Antonio Credit Union (10-year $90K minimum). We still have a few 3-percent-plus CDs left, but they may be near extinction.

Even though there are some risks that an institution may increase the early withdrawal penalty, long-term CDs can be a reasonable strategy in today's awful interest rate environment. If rates shoot up in the next few years, you can make an early withdrawal. If the penalty is reasonable, you will still come out better than if you had chosen a short-term CD. In the lists below, I've included a few long-term CDs in the short-term CD lists. These long-term CDs have small early withdrawal penalties, and due to these small penalties, the effective yields after the penalty are often higher than the shorter-term CD yields. I have more details on this strategy along with some nationally available CD examples in this recent post.

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 October 7, 2011

Under 1-Year CD Rates

  • Noteworthy Local Deals

1-Year CD Rates

  • Noteworthy Local Deals

18-month CD Rates

  • Noteworthy Local Deals

2-Year CD Rates

  • Noteworthy Local Deals

3-Year CD Rates

  • Noteworthy Local Deals

4-Year CD Rates

  • Noteworthy Local Deals

5-Year CD Rates

  • Noteworthy Local Deals

Over 5-Year CD Rates

  • Noteworthy Local Deals

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


  Tags: CD rates

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Comments
33 Comments.
Comment #1 by patient saver (anonymous) posted on
patient saver
Yup, and the game goes on!!

I had a 6.18% end the other day, man did that hurt... I ended up going with a "local" BB&T and opened another can't loose thing at a whooping 1% for 30 mo. I only went with them cause its local, and the deal is you can pull ALL the funds in a year without a penalty, or ANY time after 1 year, you just need to not leave anything behind as it will be subject to a penalty. I figure its about as safe as you can get, cause if rates still suck in a year I just leave it, if not I close it. You can also add 10K after a year on a one time basis, and still close it all.

I also opened another one at SunTrust, man this was even crazier, 25 mo @ only .80% lol unreal, but that one wasn't all that far from the one that closed @1.1% so it didn't hurt quite as bad.

I guess what they say about things being bigger in TX is right, seems you guys in El Passo have the best deals going, here in VA it all sucks, esp when you want to be able to walk in and look at someone that holds your cash.

Anyway to me its always been about protecting my principle, it may not be keeping up with inflation, but than at this stage I don't need or buy a lot either I have all the garbage I need now.

I can wait this out, I have before, when rates were 7-9% and back down to 1.5% than back to 5-6%, and now back down, but they have have stayed down a lot longer this time and there may be at least another year or so to go. All I know is at this stage I don't plan for "long term" anymore, I probably only have another 20 years if I'm lucky, and what I have will last me as long as I stay within my income level.

 

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Comment #3 by Anonymous posted on
Anonymous
#1 and #2

Good posts, thanks, and so typical a senario for a lot of us.

When I retired, I was counting mostly on the earnings from my conservative investments. As it turns out, our social security benefits provide a considerable portion of our retirement income, and, right now, represents the most stable portion of our income....who would have thought. About all we can do now, is to try to get the best CD rates that we can, 2.5% or so, and I think we can make it on that. But 1%, no, we could not make it. In my wildest dreams I did not think that it would ever be this bad for so long and with no relief in sight.  

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Comment #2 by Will K. from Maryland (anonymous) posted on
Will K. from Maryland
patient saver:

great post.  I feel ya pain. I am 64 yrs. old, thought I retired after 40 yrs. of backbreaking work, boy was I wrong. I also have all the crap I need, but we live in a high-cost area and I still need some decent income to pay the bills and buy groceries.  We retired with what we thought was a ton of funds, but at 2.5% (our avg. CD return now, including the old ones) we cannot pay our bills.  We will not risk our principal in the stocks or things like that.  One bad day in the market and it can wipe out a year of dividend advantage, plus principal.  So I will have to go back to work, probably full-time until we can get 5-6% again.  My brother in law is younger than us, 57, and his financial planner/accountant told him that he may need $2 million to retire because of the uncertainty of getting safe, decent yields on savings.  Gee, at 1%, how much do you need to generate a decent income?  It's ridiculous.   Thanks for your great post and good luck!

11
Comment #4 by Anonymous posted on
Anonymous
True that CD rates have fallen.  Worse yet are the money mkt and savings acct rates.  It's been a true struggle to rush to get a 3 yr, a 4 yr or a 5 yr CD before the bank or credit union drops its rate even further.  The biggest mistake I made almost 3 yrs ago was dropping my 5 yr ladder.  I thought, as many economists thought, that inflation would take off  in a couple of years after the worst president in my lifetim he was elected.  I'm still expecting it to occur, but before that happens several national and international issues have to be resolved, including enrichment of individual purchasing power.  Anyway, I've re-engaged my 5 yr ladder, although I'm still a little shy of various parts of it.

 

That said, we should all take off our hats to Ken.  He's done the best job of all the internet sites.

8
Comment #5 by Paoli (anonymous) posted on
Paoli
Isn't this a GREAT time to be alive!  When too many of us are actually happy that we may be old now and not have too many more years to worry about how long our money will last!  I was doing the same thing this week in order to help myself feel better.  Counting out how many more years we "may" have to live and maybe the savings will last inspite of this insanity in interest rates.  The "Golden" years are supposed to be about enjoying life, NOT counting out how many years we have left to live!  Are we the only ones who have to use what we have left also to help an adult child in need due to the job problem?  These are certainly not OUR "Golden" or even "Silver" years!  Have a great day anyway, people!

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Comment #6 by Shorebreak posted on
Shorebreak
Thank you Ben Bernanke and the Federal Reserve (A private entity) for making the remaining years for seniors who have prudently saved merely a living hell.

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Comment #7 by Pauline (anonymous) posted on
Pauline
This discussion reminds me of the lady in her late 80's (?) who wrote in here not too long ago and talked about going to work wiping tables at a Burger King because the low interest rates cut her income.   How sad a state of affiars we are in now for our senior citizens and retirees.

3
Comment #8 by Anonymous posted on
Anonymous
Those in the public sector with their nice pensions are laughing at you right now.

2
Comment #9 by Paoli (anonymous) posted on
Paoli
Anony #8:  Pray tell where are those fortunate folks in the public sector with the nice pensions investing their money?  Even their pensions won't do them any better than our savings if they can't keep them in a CD or other safe investment with a decent interest rate.  Do they get to keep their pensions in banks giving them higher interest rates than we can get?  IMO, if they are retirees. they are going to end up in the same sinking boat we are in.   I am sure there are many posters here who got good pensions from their companies but if they can't earn good interest on the funds, they may not be able to enjoy the life they hoped from it. 

1
Comment #10 by Anonymous posted on
Anonymous
Paoli - I think the general notion of what #8 was saying, in a subtle and concise way, is that the public pensioners are far better off than the rest of us since their pensions are quite liberal, usaually increase each year and are not subject to the interest rate decreases like the rest of us are...they really don't have to worry about investing their retirement funds like you and the rest of us because they are assured of an ever increasing pension amount. If rates go to zero, or even less, they still get their pensions, funded by you and me. Get the picture?

7
Comment #11 by Anonymous posted on
Anonymous
Typical public pension person,

More likely than not, worked as a public works employee on general street and fix-up duty, usually seen standing in a circle with a group of five or six others, on the side of any roadway, with hands in pocket shooting the bull with the others, and either smokeing a cig or talking on a cell phone to the wifey, waiting for the next rest break or lunch, and moaning about all the work that needs to be done. And these people are receiving, and assured of, a far better and lavish taxpayer paid retirement income, pension, than most of us?    

4
Comment #12 by decades posted on
decades
remember the good old days ... had a RCA at midwest credit union for 7.15% or something like that ...had bunch of cd's at Agricultural FCU 6% to 6.5% and there was the scare that went through FW forum that it was a Nigerian investment scam ....

1
Comment #14 by Paoli (anonymous) posted on
Paoli
Those photos don't disgust me but I hope they do to Obama, Bernanke, McConnell and all the senators I wrote to last year warning them that their "inactions" in helping our country was going to bring on such a revolution.  When people get desperate, they get angry and they are "forced" to act like animals to get the attention of the so-called no-leaders of our once great country.  I am just sorry that I am too sick and live too far from New York to join them.  Desperation calls for desperate actions.  I hope these photos get seen around the world so everyone can see what has happened to our country.  This is just the beginning folks.  They have the audacity to give OUR tax dollars to other countries so we can look great while they FORCE our brave citizens to take to the streets like animals to get their attention.    I hope they do the same in Washington and storm the offices of our "no-leaders" to let them know we want our country back and we won't sit still any longer for what is happening. 

2
Comment #15 by Anonymous posted on
Anonymous
Like many who post here, I'm an old guy married to one equally as old.  We have the same issues as many of the posters here.  But, it should be remembered that what's going on today is a direct result of our greed, those of us living in the U.S.  Rather than looking back to  the glory days, we should instead be directing our thought processes toward the tomorrows.  We're (my wife & I) not in any way different from the posters.  We look at how long our savings will last us.  I use a somewhat sophisticated program to help me determine this.   If in the process we establish that we need to correct our spending path, then we do. 

The golden years were anything but golden for many in this country prior to the mid 80s.   Today's golden years are very golden on a relative basis, even though things aren't as going as we'd come to  expect or hope for.

We can all take part in helping our country regain its footing...........vote for someone who has a love for the U.S. and vote Obama out.

4
Comment #16 by Shorebreak posted on
Shorebreak
Re: Anonymous - #15, Sunday, October 9, 2011 - 9:34 AM

Are you so gullible that you think replacing Obama will solve yours, or the country's problems? We are living in a plutocracy, get used to it.

4
Comment #17 by Anonymous posted on
Anonymous
Gullible?  No, not likely.  Will getting rid of obama enable our country to be completely on the right footing?  No, but it's a definite step in the right step.  Perhaps if I were from Pluto it might help.........ho, ho, ho.

 

3
Comment #18 by mak1118 posted on
mak1118
You should be blaming the FED whether it be Bernanke or Greeenspan it is the manipulation of interest rates to help save the stock market since 2000 that has created the booms and busts that has brought us to these times. I wouldn't be surprised to see rates stay low for longer then people think , it's possible that rates might stay low for 5 to 7 more years. They stayed low for quite a while in the 1940s during the great depression era.

1
Comment #19 by Anonymous posted on
Anonymous
Getting rid of Obama may not solve the problem immediately but its a definite step in the right direction. Under his administration the deficit has increased five-fold, more than any other president and more than every president since GWashington. getting rid of a man whose vision of America is to turn it into a European-style socialist democracy is imperative for the future of America.

1
Comment #20 by mak1118 posted on
mak1118
#19 Bush was handed a dot.com bubble bust along with 911 terrorist attack and what Obama got was that and a lot more so to blame Obama for something that has been in the making for decades seems to me to be a little shortsighted.

2
Comment #21 by Anonymous posted on
Anonymous
I am about to be one of the public pension folks. Many are fond of saying how sweet a deal it is. It would be if we received competitive wages throughout our career. I am a public community college instructor in a technical field, for the past 10 years my annual salary has been about $20,000 less than a similar position in industry.  The pension was the only reason the job made economic sense.

We have had three people come into the department in the past three years from private industry who thought they could take the lower salary and that it would be less work. All three left and returned to private industry, the longest lasted 4 years. It is not the sweet deal they thought it was.

By the way my pension after 31 years is 49% of my highest 5 years and it does not include accumulated sick leave.

1
Comment #22 by Anonymous posted on
Anonymous
#21..........I guess the overriding question I have is why would you teach if you could earn more in the private sector?  Public pensions need to be restructured and that includes teaching pensions.  They are exhorbitant relative to what private pensions are.  My former wife taught because she enjoyed teaching.  Because of the # of years she taught, she's reaping excessive pension benefits, far exceeding her real contribution.

1
Comment #25 by Paoli (anonymous) posted on
Paoli
If Obama is redistributing wealth, will someone please give him my address?  The most I have gotten is that crappy $250 for being in the Medicare donut hole too soon one time.  Who is he redistributing all that money to?  Inquiring mines need to know!

2
Comment #28 by Anonymous posted on
Anonymous
To number 8 and all the other here who like to complain about the so-called excessive and wonderful pensions public sector employees have. I am a retired teacher and I too am here being hurt by the exceedingly low rates. I taught becasue I loved it but it was a financial mistake. My so-called wonderful pension has been cut and is no where near enough for me to live off. The pension plan in my state was totally solvent but was cut anyway in order to pay for the mistakes made by others. Public pensioners are NOT to blame for this mess and despite our meager salaries the misconception continues that we are better off than others. Instead of turning against those of us who teach your children and provide all the other services we should be focused on the banking industry which got us in this mess and is certainly not helping get out of it.

 

1
Comment #31 by Anonymous posted on
Anonymous
#28 - If you are a public pensioner teacher, as you say you are, and complaining about what the rest of us pay you, do you have any additional thoughts as to why your teaching 'efforts' have resulted in the very noticeability DECREASE in the average grade point averages of your students? Still think we should pay you more for all of those questionable results?...........lol

1
Comment #29 by Anonymous posted on
Anonymous
Paoli said - "who is he distributing all that money to" - a great question, so lets try this - 

1 - Shovel ready projects that weren't shovel ready?

2 - The automakers?

3 - Big banks?

4 - Companies that were about to go under and, in fact, have now gone under?

5 - Unemployment benefits that now seem to go on forever?

6 - Tax the guys that provide the jobs?

7 - Drive rates to practically zero to aid the underwater borrowers?

8 - Mortgage relief to the folks trying to live far beyond their means?

9 - Tax credits for any unmarried person having more than ten kids or so?

10 - And the all time favorite, larger payments to all the farmers who lay on the couch and watch TV everyday?

11 - And on and on.......

12 - But for you and the rest of the financially conservative folks, take your $250 and be grateful to the Obama guy.

2
Comment #30 by mak1118 posted on
mak1118
I thought this was about interest rates?  Pensions?

2
Comment #33 by Anonymous posted on
Anonymous
You're definitely not living in New York City 'on a measger 5 figure pension and enjoy life to the fulles t' unless you define the word 'joy' as existing on beans and franks and the delicious NYC 'fresh' air.

3
Comment #36 by Anonymous posted on
Anonymous
Ken- For years, I sent this blog many tips on rates offered and dealings with specific credit unions and banks.  The blog has digressed.  You need to delete comments that aren't  oriented toward providing useful info.  Stay fact-based about deals. Remove snarky comments. Don't let the site become a gripe/opinion/lifestory blog---it dilutes the blog's usefulness and makes it unlikely investors like me will provide further info.

3
Comment #37 by snarky (anonymous) posted on
snarky
this site provides way more than just financial jargon  i for1 like the pithy banter  light and funny stuff it serves as an out let for my self and i bet many others  thank you mr ken for not deleting

1
Comment #38 by jay sans (anonymous) posted on
jay sans
i agree with 37 his site is the best of both worlds it provides useful financial info plus manny laughs keep up the good work  ken

1
Comment #39 by Paoli (anonymous) posted on
Paoli
I thank Anony #36 for all the helpful and useful financial info he provides to keep us on top of best rates. However, there are some people who only want to read the Wall Street Journal and others like myself who enjoy getting a laugh or two out of the day from a posting on here.  I hate deletions unless people are abusing one another or being profane so I do hope we can continue to make a place on here for serious financial info and a good banter when available.  Life is hard enough trying to survive on these low interest rates without not finding time in the day to kid one another.  Just my opinion.

2