Survey of the Best CD Rates for November 4, 2011

It was another round of rate cuts as the new month started. However, most of the rate leaders on the nationwide lists held steady with their CD rates. These included Alliant Credit Union, Melrose Credit Union, Digital Credit Union and Pentagon Federal Credit Union. Even Ally Bank kept its 5-year CD rate the same. This is the first week in a while that Ally hasn't cut its 5-year CD rate.

The highest 5-year CD rate that's nationally available continues to be 2.86% APY at Digital Credit Union. Minimum deposit is $25K minimum, and a relationship checking account is required. Without the checking requirement, the best 5-year CD rate is 2.75% APY at XCEL Federal Credit Union. This has a $250K minimum deposit (2.65% APY for a $20K minimum).

The highest 5-year CD rate at a bank that's nationally available continues to be 2.25% APY at US Bank. It's actually a special 59-month term. I reviewed this CD on Monday. As I described in this Monday post, it's important to know the downsides of this CD such as the harsh early withdrawal penalty.

Local CD Deals

For the local CDs, many banks and credit unions across the nation cut their CD rates with the start of November. On the east coast, CD rates were cut by Industrial Credit Union, City of Boston Credit Union, Third Federal and Coastline FCU.

In Texas, CD rates were cut at Randolph-Brooks FCU and at SACU. Even with the rate cuts, Randolph-Brooks holds the top spot with the highest CD rate in the nation with a 3.14% APY for a 7-year term.

On the west coast, CD rates fell at HAPO Community Credit Union in Washington State. In California, CD rates fell at First Choice Bank and at Pasadena Service Credit Union.

There was a little bit of good news on the local CDs. Institution for Savings in northern Massachusetts is having a special 3-year CD with a 2.50% APY. This is only for their Ipswich branch (see review).

University of Iowa Community Credit Union changed its 25-month CD special into a 19-month CD special, and the rates remained the same: 1.80% APY for a $250K minimum, 1.70% APY for a $100K minimum and 1.60% APY for a $1K minimum.

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied. Since Ally Bank's 5-year CD only has a 60-day interest EWP, it's still a good deal when closed early even with the recent rate cuts.

As we learned last month, there is some risk that the bank or credit union may increase the early withdrawal penalty on existing CDs (see my post on a credit union that was allowed to raise the EWP on existing CDs).

Another risk is that the institution will make use of a clause in its disclosure to disallow an early withdrawal request. That's another downside with US Bank. According to its disclosure, a "withdrawal prior to maturity will be permitted only with the consent of the bank which may only be given at the time of withdrawal." I have more details in my post Risks and Benefits of Long-Term CDs.

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 most 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 November 4, 2011

Under 1-Year CD Rates

• Ally Bank - 1.26% (1.89% 5-year CD closed after 6 months, see review & risks)
• Digital Credit Union - 1.20% ($25K min w/relationship) 0.95% (no relationship) 6-month add-on CD
• Atlantic Coast Bank - 1.00% 7-month internet CD
• Ally Bank - 0.95% 11-month No-Penalty CD
• airbanking (MainStreet) - 0.90% 12-month No-Penalty CD
• AloStar Bank - 0.86% 6-month CD

• Noteworthy Local Deals

• Alma Bank - 1.35% 12-month Liquid CD (New York City)
• Chasewood Bank - 1.16% 6-month CD (Houston)
• First Choice Bank - 1.05% ($50K) 1.00% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
• Industrial Credit Union - 1.00% 6-month CD (Boston metro area)
• Community Bank of Tri-County - 1.00% 4-month CD (Southern Maryland)

1-Year CD Rates

• Ally Bank - 1.57% (1.89% 5-year CD closed after 1 year, see review & risks)
• Digital Credit Union - 1.36% ($25K min w/relationship) 1.11% (no relationship) 1-year add-on CD
• Alliant Credit Union - 1.30% ($25K min) 1-year CD
• CIT Bank - 1.15% ($25K min) add-on & bump-up 1-year CD
• Doral Bank Direct - 1.15% 1-year CD

• Noteworthy Local Deals

• 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)
• El Paso Employees Federal Credit Union - 1.46% 1-year CD (El Paso, TX)
• General Electric Credit Union - 1.42% ($100K) 1-year CD (Cincinnati OH metro)
• Alma Bank - 1.35% 12-month Liquid CD (New York City)
• Chasewood Bank - 1.26% 1-year CD (Houston)
• Alaska USA Federal Credit Union - 1.25% ($100K) 1.15% ($10K) 1-year CD (San Bernardino County, CA; parts of WA & AK)
• First Choice Bank - 1.15% ($50K) 1.10% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)
• Industrial Credit Union - 1.10% 12-month CD (Boston metro area)

18-month CD Rates

• Digital Credit Union - 1.73% (2.61% 5-year CD closed after 18 months, see risks)
• Ally Bank - 1.68% (1.89% 5-year CD closed after 18 months, see review & risks)
• Alliant Credit Union - 1.55% ($25K min) 18-month CD
• Franklin Synergy Bank - 1.24% 18-month CD
• Discover Bank - 1.15% 18-month CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 1.80% ($250K) 1.70% ($100K) 1.60% ($1K) 19-month CD (several parts of Iowa)
• Alaska USA Federal Credit Union - 1.60% ($100K) 1.40% ($10K) 18-month CD (San Bernardino County, CA; parts of WA & AK)
• Department of Commerce FCU - 1.45% 18-month CD (Washington DC)
• Focus Bank - 1.31% 19-month CD (online application for MO, AR, KY, TN & parts of IL)
• First Choice Bank - 1.30% ($50K) 1.25% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)
• HAPO Community Credit Union - 1.25% 18-month CD (WA State)
• Peoples Federal Savings Bank - 1.25% 18-month CD (online application for MA only)

2-Year CD Rates

• Digital Credit Union - 1.95% (2.61% 5-year CD closed after 2 years, see risks)
• Ally Bank - 1.73% (1.89% 5-year CD closed after 2 years, see review & risks)
• Alliant Credit Union - 1.70% ($25K min) 1-year CD
• CIT Bank - 1.32% ($100K) 1.30% ($1K) 2-year CD

• Noteworthy Local Deals

• NavyArmy Federal Credit Union - 2.00% ($100K) 1.85% ($1K) 2-year CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.65% ($250K) 1.55% ($100K) 1.45% ($1K) 25-month CD (several parts of Iowa)
• Alaska USA Federal Credit Union - 1.75% ($100K) 1.55% ($10K) 2-year CD (San Bernardino County, CA; parts of WA & AK)
• Department of Commerce FCU - 1.65% 2-year CD (Washington DC)
• LOMTO Federal Credit Union - 1.60% 2-year CD (parts of New York City)
• Wings Financial Credit Union - 1.51% 2-year CD (Seattle & Minneapolis Metro areas)
• Chasewood Bank - 1.51% 2-year CD (Houston)
• Pasadena Service Credit Union - 1.40% 2-year CD (Southern California)
• Industrial Credit Union - 1.35% 2-year CD (Boston metro area)

3-Year CD Rates

• Digital Credit Union - 2.17% (2.61% 5-year CD closed after 3 years, see risks)
• Melrose Credit Union - 1.91% 3-year CD
• Alliant Credit Union - 1.90% ($25K min) 3-year CD
• Ally Bank - 1.78% (1.89% 5-year CD closed after 3 years, see review & risks)
• Doral Bank Direct - 1.65% 3-year CD
• CIT Bank - 1.56% ($100K) 1.54% ($1K) 3-year CD

• Noteworthy Local Deals

• Institution for Savings - 2.50% 3-year CD (one-branch special in northeast MA)
• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 37-month CD (several parts of Iowa)
• El Paso Employees Federal Credit Union - 2.32% 3-year CD (El Paso, TX)
• Credit Union of Atlanta - 2.28% 3-year CD (parts of Atlanta, Georgia)
• Alaska USA Federal Credit Union - 2.10% ($100K) 2.00% ($10K) 3-year CD (San Bernardino County, CA; parts of WA & AK)
• SPCO Credit Union - 1.97% ($50K) 1.76% ($1K) 3-year CD (Houston, TX)
• Wings Financial Credit Union - 1.96% 3-year CD (Seattle & Minneapolis Metro areas)
• LOMTO Federal Credit Union - 1.95% 3-year CD (parts of New York City)
• Security Service Federal Credit Union - 1.85% ($100K) 1.70% ($500) 3-year CD (parts of Texas, lower rates in CO)
• HAPO Community Credit Union - 1.80% 3-year CD (WA State)
• Community Bank of Tri-County - 1.80% bump-up 30-month CD (Southern Maryland)
• EBSB Direct - 1.80% 3-year internet CD (New England & New York State)
• City of Boston Credit Union - 1.75% ($50K) 1.65% ($500) 3-year CD (Boston metro)
• Broward Bank of Commerce - 1.61% 3-year CD (South Florida)
• First Choice Bank - 1.60% ($50K) 1.55% ($2.5K) 3-year CD (Los Angeles & Orange County, CA)

4-Year CD Rates

• XCEL Federal Credit Union - 2.55% ($250K) 2.50% ($100K) 2.45% ($20K) 4-year CD
• Digital Credit Union - 2.36% ($25K min w/relationship) 2.11% (no relationship) 4-year CD
• Digital Credit Union - 2.28% (2.61% 5-year CD closed after 4 years, see risks)
• Alliant Credit Union - 2.20% ($25K min) 4-year CD
• airbanking (MainStreet) - 2.00% 4-year CD

• Noteworthy Local Deals

• Credit Union of Atlanta - 2.52% 4-year CD (parts of Atlanta, Georgia)
• Department of Commerce FCU - 2.50% 4-year CD (Washington DC)
• University of Iowa Community Credit Union - 2.50% ($250K) 2.40% ($100K) 2.30% ($1K) 49-month CD (several parts of Iowa)
• El Paso Employees Federal Credit Union - 2.42% 4-year CD (El Paso, TX)
• Liberty Savings Federal Credit Union - 2.40% 4-year CD (Northern NJ)
• SPCO Credit Union - 2.32% ($50K) 2.02% ($1K) 4-year CD (Houston, TX)
• Eagle One Credit Union - 2.27% 4-year CD (Philadelphia)
• LOMTO Federal Credit Union - 2.25% 4-year CD (parts of New York City)
• HAPO Community Credit Union - 2.15% 4-year CD (WA State)
• Wings Financial Credit Union - 2.12% 4-year CD (Seattle & Minneapolis Metro areas)
• Broward Bank of Commerce - 1.82% 4-year CD (South Florida)
• First Choice Bank - 1.80% ($50K) 1.70% ($2.5K) 4-year CD (Los Angeles & Orange County, CA)

5-Year CD Rates

• Digital Credit Union - 2.86% ($25K min w/relationship) 2.61% (no relationship) 5-year CD
• XCEL Federal Credit Union - 2.75% ($250K) 2.70% ($100K) 2.65% ($20K) 5-year CD
• Melrose Credit Union - 2.68% 5-year CD
• Firstmark Credit Union - 2.50% ($100K) 2.40% ($500) 5-year CD (account review)
• US Bank - 2.25% 59-month CD
• airbanking (MainStreet) - 2.15% 5-year CD

• Noteworthy Local Deals

• El Paso Employees Federal Credit Union - 3.03% 5-year CD (El Paso, TX)
• Department of Commerce FCU - 2.80% 5-year CD (Washington DC)
• Liberty Savings Federal Credit Union - 2.80% 5-year CD (Northern NJ)
• Eagle One Credit Union - 2.79% 5-year CD (Philadelphia)
• SPCO Credit Union - 2.77% ($50K) 2.48% ($1K) 5-year CD (Houston, TX)
• Alaska USA Federal Credit Union - 2.75% ($100K) 2.65% ($10K) 5-year CD (San Bernardino County, CA; parts of WA & AK)
• LOMTO Federal Credit Union - 2.65% 5-year CD (parts of New York City)
• General Electric Credit Union - 2.64% 5-year CD (Cincinnati OH metro)
• Randolph-Brooks Federal Credit Union - 2.63% ($75K) 2.58% ($20K) 5-year CD (San Antonio & Austin, TX)
• Security Service Federal Credit Union - 2.55% ($100K) 2.40% ($500) 5-year CD (parts of Texas, lower rates in CO)
• First General Credit Union - 2.50% 5-year CD (Grand Rapids, MI metro)
• Pasadena Service Credit Union - 2.45% 5-year CD (Southern California)
• Wings Financial Credit Union - 2.42% 5-year CD (Seattle & Minneapolis Metro areas)

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.80% ($20K) 7-year CD (membership restrictions)
• Apple Federal Credit Union - 2.80% 10-year CD
• Pentagon Federal Credit Union - 2.75% 7-year CD
• Discover Bank - 2.50% 10-year CD (2.55% AAA members)

• Noteworthy Local Deals

• Randolph-Brooks Federal Credit Union - 3.14% ($75K) 3.09% ($20K) 7-year CD (San Antonio & Austin, TX)
• Security Service Federal Credit Union - 3.10% ($100K) 2.95% ($500) 7-year CD (parts of Texas, lower rates in CO)
• SACU - 3.10% ($90K) 3.05% ($10K) 10-year (San Antonio, TX)
• Liberty Savings Federal Credit Union - 2.85% 6-year CD (Northern NJ)
• Randolph-Brooks Federal Credit Union - 2.84% ($75K) 2.78% ($20K) 6-year CD (San Antonio & Austin, TX)
• SACU - 2.70% ($100K) 2.65% ($10K) 7-year (San Antonio, TX)
• Teachers Credit Union - 2.50% 71-month CD (parts of Indiana)
• Malvern Federal Savings Bank - 2.25% 7-year (East Pennsylvania)
• Third Federal - 2.05% 6-year CD (in SE & SW Florida, Ohio)

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