Survey of the Best CD Rates for December 30, 2011

As we end 2011, CD rates continue to trend down. The latest rate leader to cut rates is Digital Credit Union (DCU) which reduced all of its CD rates by 25 basis points. Even with the rate cuts, DCU's Jumbo 5-year CD remains near the top of the nationally available 5-year CD list. Its new yield is 2.60% with a relationship or 2.35% without. Melrose Credit Union's 2.68% APY 5-year CD now holds the top spot for the highest nationally available 5-year CD rate. US Bank continues to hold the top spot for banks with a 2.25% APY for a special 59-month term.

We may see many rate changes next week as institutions update their rates for the new month. Not all may be rate cuts. In past Januarys, PenFed has come out with CD specials. Unfortunately, I haven't heard of any for this January. However, a reader commented that he was told by a PenFed CSR that they will be offering a new 10-year CD in January with a 3.00% APY. I was not able to confirm this with either my PenFed contact or with two different PenFed CSRs. We should soon know if this is true when PenFed releases its rates for January. PenFed had originally planned to offer 10-year CDs to all members last January. For some reason, PenFed decided against it. The only 10-year CDs that came out were special CDs offered to some members with maturing CDs.

I added two short-term CD deals to my nationally available list this week. KeySource Commercial Bank is offering a special 1.15% APY 7-month CD and a 1.20% APY 1-year CD. I confirmed with the bank this week that people in any state can open these CDs via their online application. It's a small bank, so these might not last long.

Local CD Deals

There weren't many changes to my list of local CDs this week. I added one short-term CD deal being offered by First Entertainment Credit Union which is open to those in the Los Angeles metro area. It's a special 2.00% APY 4-month CD. Unfortunately, there's a maximum deposit of $25,000 per member so you can't make much money from this CD (see my review).

In today's environment when rate hikes appear unlikely for at least another 18 months, going long with CDs make more sense in my opinion. Unfortunately, even long-term CDs yields are disappointing. It's very hard to find any CDs these days with yields of at least 3.00%. I only have four local CDs in my list that offer at least 3.00% APY. Three of these are in Texas, and one is in the Philadelphia metro area.

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, 12 and 18 months. However, Digital's 2.35% APY 5-year CD (2.60% with relationship checking) becomes a better deal when it's closed at 24 months or later.

As we learned in September, 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 30, 2011

Under 1-Year CD Rates

• Ally Bank - 1.19% (1.79% 5-year CD closed after 6 months, see review & risks)
• KeySource Commercial Bank - 1.15% 7-month CD special, see account review
Ally Bank - 0.91% 11-month No-Penalty CD, see account review
• Virtual Bank - 0.85% 6-month CD

• Noteworthy Local Deals

• First Entertainment Credit Union - 2.00% 4-month CD special ($25K max) (Los Angeles metro)
• 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)
• American Plus Bank - 0.95% 6-month CD (Los Angeles metro)
• 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)
• North American Savings Bank - 1.25% 13-month CD
• KeySource Commercial Bank - 1.20% 1-year CD, see account review
• Digital Credit Union - 1.17% (2.35% 5-year CD closed after 1 year, see risks)
• 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)
• American Plus Bank - 1.16% 1-year CD (Los Angeles metro)
• First Choice Bank - 1.15% ($50K) 1.10% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)
• CapitalSource Bank - 1.10% 11-month CD (California)

18-month CD Rates

• Ally Bank - 1.59% (1.79% 5-year CD closed after 18 months, see review & risks)
• Digital Credit Union - 1.56% (2.35% 5-year CD closed after 18 months, see 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 - 1.76% (2.35% 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 - 1.95% (2.35% 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)
• Charter Oak Federal Credit Union - 2.00% 3-year CD (east CT)
• 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)
• Florida Credit Union - 1.61% 3-year CD special (North Central FL)
• 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 - 2.10% ($25K min w/relationship) 1.85% (no relationship) 4-year CD
• Digital Credit Union - 2.05% (2.35% 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 - 1.98% 4-year CD (South Florida)

5-Year CD Rates

• Melrose Credit Union - 2.68% 5-year CD
• Digital Credit Union - 2.60% ($25K min w/relationship) 2.35% (no relationship) 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)
• 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)
• Randolph-Brooks Federal Credit Union - 2.27% ($75K) 2.22% ($20K) 5-year CD (San Antonio & Austin, TX)
• Floridian Community Bank - 2.27% 5-year CD (South Florida)
• Peoples Alliance Credit Union - 2.20% 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)
• Department of Commerce FCU - 2.80% 7-year CD (Washington DC)
• SACU - 2.85% ($100K) 2.80% ($10K) 7-year (San Antonio, TX)
• Randolph-Brooks Federal Credit Union - 2.78% ($75K) 2.73% ($20K) 7-year CD (San Antonio & Austin, TX)
• Montauk Credit Union - 2.75% 7-year CD (New York City)
• Royal Bank America - 2.65% 8-year CD (Philadelphia)
• Teachers Credit Union - 2.50% 71-month CD (parts of Indiana)
• Randolph-Brooks Federal Credit Union - 2.48% ($75K) 2.43% ($20K) 6-year CD (San Antonio & Austin, TX)
• Malvern Federal Savings Bank - 2.25% 7-year (East Pennsylvania)

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