Survey of the Best CD Rates for December 23, 2011

As I mentioned on Wednesday CD rates continue to trend down. This week Ally Bank's 5-year CD APY fell from 1.84% to 1.79%. Its 11-month no-penalty CD APY fell from 0.95% to 0.91%.

Fortunately, many of the all-access credit unions like Alliant, PenFed and Melrose continue to hold their rates steady. We'll see if they can continue this into the new year. I'm hoping they will, but we often see rate cuts at the start of each month. In the past PenFed has offered good CD deals in January, but I haven't heard about any such specials this year.

There was one all-access credit union on my list that cut its rates this week. Apple FCU reduced its 10-year APY from 2.80% to 2.70%. Even though Discover Bank's 10-year CD is 2.50% APY, I consider this to be a better deal than Apple's CD since Discover Bank's early withdrawal penalty is much smaller.

Local CD Deals

I added a new bank to my 3% club. Its Royal Bank America, and it's offering a 10-year CD that pays 3.00% APY. Branches are located in Philadelphia and around southeast Pennsylvania. Even though it's in a major metro area, I haven't listed it in the past since the bank's financials are weak. However, their financials have improved this year. If you stay under the FDIC limits, the main risk of going with a weak bank for a long-term CD is that you will lose the rate lock of your long-term CD.

With Royal Bank America, I now have four institutions on my list offering CD rates of at least 3% APY in major metro areas. The other three are all in Texas.

Every now and then I come across a new small credit union in a major metro area that offers very competitive CD rates. Over the years I've found several in New York City. One example is Self Reliance New York FCU which continues to offer a 3.05% APY 5-year CD. I haven't been listing this credit union in my list here since it's hard to qualify for membership. You have to be of Ukrainian descent, and as readers have learned, even that may not be good enough.

I came across a credit union that's similar to Self Reliance in Los Angeles. It's Polam Federal Credit Union, and it's field of membership is centered around Polish descendants. As I described in my review it appears to be much more accepting than Self Reliance. Anyone may be able to qualify by being a friend of the Polish Community. Unfortunately, its CD rates are not as high as Self Reliance's, but they're still competitive especially for the LA metro area. They include a 2.45% APY 5-year CD and a 1.85% APY 3-year CD.

If you live in New York City and you are unable to qualify for Self Reliance, there's a very good short-term CD deal. Alma Bank continues to offer a 12-month liquid CD that pays 1.35% APY. Thanks to reader NYCDoug for providing the CD details in the comments. The CD does require an active checking account. Please refer to Doug's comments for details (He has some new updates). This special CD is scheduled to end this month, so time is running out.

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 penalty, it's still a good deal when closed early even with the recent rate cuts.

Since the early withdrawal penalty of Digital Credit Union is only 6 months of interest, this makes its 5-year CD a good deal for short terms. Ally Bank's 1.79% 5-year CD is still the best deal for 6 and 12 months. However, Digital's 2.61% APY 5-year CD (2.86% with relationship checking) becomes a better deal when it's closed at 18 months or later.

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).

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. This CD survey 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 CD survey 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 December 23, 2011

Under 1-Year CD Rates

• Digital Credit Union - 1.20% ($25K min w/relationship) 0.95% (no relationship) 6-month add-on CD
• Ally Bank - 1.19% (1.79% 5-year CD closed after 6 months, see review & risks)
Ally Bank - 0.91% 11-month No-Penalty CD, see account review
• Virtual Bank - 0.85% 6-month CD

• Noteworthy Local Deals

• Alma Bank - 1.35% 12-month Liquid CD requires active chk (New York City)
• University of Iowa Community Credit Union - 1.30% ($250K) 1.20% ($100K) 1.10% ($1K) 10-month CD (several parts of Iowa)
• Veridian Credit Union - 1.20% ($100K) 1.00% ($1K) 7-month CD (several parts of Iowa)
• First Choice Bank - 1.05% ($50K) 1.00% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
• 1st Commonwealth Bank of Virginia - 1.00% 3-month CD special (Washington DC metro)
• CapitalSource Bank - 0.95% 5-month CD (California)
• Industrial Credit Union - 0.90% 6-month CD (Boston metro area)

1-Year CD Rates

• Ally Bank - 1.49% (1.79% 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
• Digital Credit Union - 1.30% (2.61% 5-year CD closed after 1 year, see risks)
• North American Savings Bank - 1.25% 13-month CD
• CIT Bank - 1.15% ($25K min) add-on & bump-up 1-year CD
• Melrose Credit Union - 1.15% 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)
• General Electric Credit Union - 1.42% ($100K) 1-year CD (Cincinnati OH metro)
• El Paso Area Teachers FCU - 1.36% ($50K) 1.26% ($500) 1-year CD (El Paso, TX)
• Alma Bank - 1.35% 12-month Liquid CD requires active chk (New York City)
• University of Iowa Community Credit Union - 1.35% ($250K) 1.25% ($100K) 1.15% ($1K) 13-month CD (several parts of Iowa)
• First American Credit Union - 1.26% ($50K) 1-year CD (south of Phoenix, AZ)
• Alaska USA Federal Credit Union - 1.25% ($100K) 1.15% ($10K) 1-year CD (San Bernardino County, CA; parts of WA & AK)
• LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
• Harris County Credit Union - 1.16% ($95K) 1-year CD (Houston)
• CapitalSource Bank - 1.15% 11-month CD (California)
• First Choice Bank - 1.15% ($50K) 1.10% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)

18-month CD Rates

• Digital Credit Union - 1.73% (2.61% 5-year CD closed after 18 months, see risks)
• Ally Bank - 1.59% (1.79% 5-year CD closed after 18 months, see review & risks)
• Alliant Credit Union - 1.35% ($25K min) 18-month CD
• Incredible Bank - 1.20% 19-month CD

• Noteworthy Local Deals

• Alaska USA Federal Credit Union - 1.60% ($100K) 1.40% ($10K) 18-month CD (San Bernardino County, CA; parts of WA & AK)
• El Paso Area Teachers FCU - 1.51% ($50K) 1.41% ($500) 18-month CD (El Paso, TX)
• Civic Bank & Trust - 1.50% Add-On 18-month CD (Nashville, TN)
• Cross River Bank - 1.50% 18-month CD (NJ in NYC metro area)
• Veridian Credit Union - 1.50% ($100K) 1.30% ($1K) 15-month CD (several parts of Iowa)
• 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)
• Montauk Credit Union - 1.25% 18-month CD (New York City)

2-Year CD Rates

• Digital Credit Union - 1.95% (2.61% 5-year CD closed after 2 years, see risks)
• Ally Bank - 1.64% (1.79% 5-year CD closed after 2 years, see review & risks)
• Alliant Credit Union - 1.50% ($25K min) 2-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)
• Veridian Credit Union - 1.90% ($100K) 1.70% ($1K) 25-month CD (several parts of Iowa)
• HEW Federal Credit Union - 1.75% 2-year CD (Washington DC metro)
• 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)
• mBank - 1.60% 2-year CD (parts of Michigan)
• Harris County Credit Union - 1.51% ($95K) 1.21% ($2.5K) 2-year CD (Houston)
• Montauk Credit Union - 1.50% 2-year CD (New York City)
• Cross River Bank - 1.50% 2-year CD (NJ in NYC metro area)
• LOMTO Federal Credit Union - 1.50% 2-year CD (parts of New York City)
• Wings Financial Credit Union - 1.41% 2-year CD (Seattle & Minneapolis Metro areas)

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
• Fort Knox Federal Credit Union - 1.80% 3-year CD
• Ally Bank - 1.69% (1.79% 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

• NavyArmy Federal Credit Union - 3.00% 30-month CD (Corpus Christi, TX metro)
• El Paso Area Teachers FCU - 2.42% ($50K) 2.32% ($500) 36 & 30-month CD (El Paso, TX)
• Veridian Credit Union - 2.20% ($100K) 2.00% ($1K) 39-month CD (several parts of Iowa)
• University of Iowa Community Credit Union - 2.20% ($250K) 2.10% ($100K) 2.00% ($1K) 37-month CD (several parts of Iowa)
• Alaska USA Federal Credit Union - 2.10% ($100K) 2.00% ($10K) 3-year CD (San Bernardino County, CA; parts of WA & AK)
• Department of Commerce FCU - 2.05% 3-year CD (Washington DC)
• Tandem Federal Credit Union - 2.00% 3-year CD (parts of Detroit metro)
• Cross River Bank - 2.00% 3-year CD (NJ in NYC metro area)
• SPCO Credit Union - 1.97% ($50K) 1.76% ($1K) 3-year CD (Houston, TX)
• Wings Financial Credit Union - 1.86% 3-year CD (Seattle & Minneapolis Metro areas)
• Polam Credit Union - 1.85% ($25K) 3-year CD (Los Angeles)
• LOMTO Federal Credit Union - 1.85% 3-year CD (parts of New York City)
• EBSB Direct - 1.80% 3-year internet CD (New England & New York State)
• First American Credit Union - 1.76% ($50K) 3-year CD (south of Phoenix, AZ)
• mBank - 1.75% 3-year CD (parts of Michigan)
• HAPO Community Credit Union - 1.65% 3-year CD (WA State)
• City of Boston Credit Union - 1.65% ($50K) 1.55% ($500) 3-year CD (Boston metro)
• Community Bank of Tri-County - 1.60% bump-up 30-month CD (Southern Maryland)
• First Choice Bank - 1.60% ($50K) 1.55% ($2.5K) 3-year CD (Los Angeles & Orange County, CA)

4-Year CD Rates

• 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)
• Melrose Credit Union - 2.17% 4-year CD
• Nationwide Bank - 1.85% ($100K) 1.80% ($500) 4-year CD

• Noteworthy Local Deals

• Institution for Savings - 2.50% 4-year CD (one-branch special in northeast MA)
• Department of Commerce FCU - 2.50% 4-year CD (Washington DC)
• Liberty Savings Federal Credit Union - 2.40% 4-year CD (Northern NJ)
• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 49-month CD (several parts of Iowa)
• SPCO Credit Union - 2.32% ($50K) 2.02% ($1K) 4-year CD (Houston, TX)
• Alaska USA Federal Credit Union - 2.30% ($100K) 2.20% ($10K) 4-year CD (San Bernardino County, CA; parts of WA & AK)
• Montauk Credit Union - 2.25% 4-year CD (New York City)
• Cross River Bank - 2.25% 4-year CD (NJ in NYC metro area)
• mBank - 2.25% 4-year CD (parts of Michigan)
• LOMTO Federal Credit Union - 2.15% 4-year CD (parts of New York City)
• Wings Financial Credit Union - 2.02% 4-year CD (Seattle & Minneapolis Metro areas)
• HAPO Community Credit Union - 2.00% 4-year CD (WA State)
• Peoples Alliance Credit Union - 2.00% 4-year CD (South Florida)

5-Year CD Rates

• Digital Credit Union - 2.86% ($25K min w/relationship) 2.61% (no relationship) 5-year CD
• Melrose Credit Union - 2.68% 5-year CD
• US Bank - 2.25% 59-month CD
• Quaint Oak Bank - 2.20% 5-year CD

• Noteworthy Local Deals

• El Paso Area Teachers FCU - 3.08% ($50K) 2.98% ($500) 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)
• 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)
• General Electric Credit Union - 2.64% 5-year CD (Cincinnati OH metro)
• LOMTO Federal Credit Union - 2.55% 5-year CD (parts of New York City)
• First American Credit Union - 2.52% ($50K) 5-year CD (south of Phoenix, AZ)
• Montauk Credit Union - 2.50% 5-year CD (New York City)
• First General Credit Union - 2.50% 5-year CD (Grand Rapids, MI metro)
• Polam Credit Union - 2.45% ($25K) 5-year CD (Los Angeles)
• Randolph-Brooks Federal Credit Union - 2.32% ($75K) 2.27% ($20K) 5-year CD (San Antonio & Austin, TX)
• Wings Financial Credit Union - 2.32% 5-year CD (Seattle & Minneapolis Metro areas)
• Washington Federal - 2.30% ($90K) 2.25% ($1K) 5-year CD (WA, AZ, ID, NV, OR, TX, UT & NM)
• Pasadena Service Credit Union - 2.30% 5-year CD (Southern California)
• Floridian Community Bank - 2.27% 5-year CD (South Florida)
• Peoples Alliance Credit Union - 2.22% 5-year CD (South Florida)

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.80% ($20K) 7-year CD (membership restrictions)
• Pentagon Federal Credit Union - 2.75% 7-year CD
• Apple Federal Credit Union - 2.70% 10-year CD
• Discover Bank - 2.50% 10-year CD (2.55% AAA members)

• Noteworthy Local Deals

• SACU - 3.35% ($90K) 3.30% ($10K) 10-year CD (San Antonio, TX)
• Royal Bank America - 3.00% 10-year CD (Philadelphia)
• Security Service Federal Credit Union - 2.85% ($100K) 2.70% ($500) 7-year CD (parts of Texas, lower rates in CO)
• Liberty Savings Federal Credit Union - 2.85% 6-year CD (Northern NJ)
• Randolph-Brooks Federal Credit Union - 2.84% ($75K) 2.78% ($20K) 7-year CD (San Antonio & Austin, TX)
• Department of Commerce FCU - 2.80% 7-year CD (Washington DC)
• SACU - 2.85% ($100K) 2.80% ($10K) 7-year (San Antonio, TX)
• Montauk Credit Union - 2.75% 7-year CD (New York City)
• Royal Bank America - 2.65% 8-year CD (Philadelphia)
• Randolph-Brooks Federal Credit Union - 2.53% ($75K) 2.48% ($20K) 6-year CD (San Antonio & Austin, TX)
• Teachers Credit Union - 2.50% 71-month CD (parts of Indiana)
• Malvern Federal Savings Bank - 2.25% 7-year (East Pennsylvania)

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