Survey of the Best CD Rates for January 27, 2012
There were a few CD rate cuts this week, but considering the Fed's new late-2014 low-rate pledge, it could have been worse. Discover Bank reduced its 10-year CD yield from 2.50% to 2.45%. This remains the highest nationally available bank CD rate in the nation. For all-access credit unions, PenFed continues to be on top with its 2.75% APY 7-year CD. PenFed will come out with new rates for February next Wednesday. I wouldn't be surprised if this rate falls.
Local CD Deals
There were a handful of banks and credit unions that cut their CD rates this week. On the plus side, I added two credit unions. One addition is Miami Postal Service Credit Union in the local CDs for terms under 1-year. Its Jumbo 9-month CD has a very competitive 1.26% APY. It's a small Jumbo CD which requires only a $25K minimum deposit. Many Southeast Florida residents should be able to qualify to join this credit union.
The other new credit union that I added this week is Our Community Credit Union in Washington State. Its 1-, 2-, 3- and 4-year CD rates are all very competitive. Anyone who lives, works or attends school in Washington State is eligible to join the credit union.
There continues to be four institutions in the 3.00% club. These are credit unions and banks that offer CD yields of at least 3.00%. Three are Texas credit unions, and one is a Nebraska bank. You can find a few other institutions in our rate tables with 3.00%+ CDs, but these are small credit unions with very narrow fields of membership or small banks in low populated areas.
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.
The risks of planning for early withdrawals of long-term CDs was recently highlighted by another credit union which raised the early withdrawal penalty on existing CDs. The credit union is CEFCU which is based in Illinois. I have more details in this blog post. CEFCU is now the second credit union which has raised the early withdrawal penalty on existing CDs. Last year Fort Knox FCU did the same thing (see my blog 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. 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 January 27, 2012
Under 1-Year CD Rates
- Ally Bank - 1.19% (1.79% 5-year CD closed after 6 months, see review & risks)
- KeySource Commercial Bank - 1.00% 7-month CD special, see account review Ally Bank - 0.91% 11-month No-Penalty CD, see account review
- AloStar Bank of Commerce - 0.85% 6-month CD
- Noteworthy Local Deals
- University of Iowa Community Credit Union - 1.45% ($250K) 1.35% ($100K) 1.25% ($1K) 10-month CD (several parts of Iowa)
- Miami Postal Service Credit Union - 1.26% ($25K) 9-month CD (Southeast FL)
- 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% ($100K max) 3-month CD special (Washington DC metro)
- American Plus Bank - 0.95% 6-month CD (Los Angeles metro)
- CapitalSource Bank - 0.90% 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 - 1.17% (2.35% 5-year CD closed after 1 year, see risks)
- Pentagon Federal Credit Union - 1.16% 1-year CD
- KeySource Commercial Bank - 1.15% 1-year CD, see account review
- Melrose Credit Union - 1.15% 1-year CD
- Doral Bank Direct - 1.15% 1-year CD
- CIT Bank - 1.08% ($25K min) add-on & bump-up 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)
- University of Iowa Community Credit Union - 1.35% ($250K) 1.25% ($100K) 1.15% ($1K) 13-month CD (several parts of Iowa)
- El Paso Area Teachers FCU - 1.31% ($50K) 1.21% ($500) 1-year CD (El Paso, TX)
- First American Credit Union - 1.26% ($50K) 1-year CD (south of Phoenix, AZ)
- LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
- Our Community Credit Union - 1.20% 1-year CD (Washington State)
- 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)
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)
- KeySource Commercial Bank - 1.20% 18-month CD, see account review
- Incredible Bank - 1.20% 19-month CD
- Alliant Credit Union - 1.15% ($1K min) 18-month CD
- Noteworthy Local Deals
- Cross River Bank - 1.50% 18-month CD (NJ in NYC metro area)
- El Paso Area Teachers FCU - 1.46% ($50K) 1.36% ($500) 18-month CD (El Paso, TX)
- Veridian Credit Union - 1.45% ($100K) 1.25% ($1K) 15-month CD (several parts of Iowa)
- Department of Commerce FCU - 1.45% 18-month CD (Washington DC)
- 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)
- Melrose Credit Union - 1.41% 2-year CD
- Alliant Credit Union - 1.30% ($1K min) 2-year CD
- American Express Bank - 1.30% 2-year CD
- CIT Bank - 1.26% ($25K min) add-on & bump-up 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 - 1.85% ($250K) 1.75% ($100K) 1.65% ($1K) 22-month CD special (several parts of Iowa)
- Veridian Credit Union - 1.80% ($100K) 1.60% ($1K) 25-month CD (several parts of Iowa)
- 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)
- Our Community Credit Union - 1.50% 2-year CD (Washington State)
- 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 - 1.90% 3-year CD
- Ally Bank - 1.69% (1.79% 5-year CD closed after 3 years, see review & risks)
- AmTrustDirect - 1.55% 3-year CD
- Noteworthy Local Deals
- NavyArmy Federal Credit Union - 3.00% 30-month CD (Corpus Christi, TX metro)
- El Paso Area Teachers FCU - 2.37% ($50K) 2.27% ($500) 36 & 30-month CD (El Paso, TX)
- University of Iowa Community Credit Union - 2.20% ($250K) 2.10% ($100K) 2.00% ($1K) 37-month CD (several parts of Iowa)
- Veridian Credit Union - 2.10% ($100K) 2.00% ($1K) 39-month CD (several parts of Iowa)
- Department of Commerce FCU - 2.05% 3-year CD (Washington DC)
- Our Community Credit Union - 2.00% 3-year CD (Washington State)
- 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)
- Institution for Savings - 2.00% 3-year CD (northeast MA)
- 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)
- 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)
- Florida Credit Union - 1.61% 3-year CD special (North Central FL)
- First Choice Bank - 1.60% ($50K) 1.55% ($2.5K) 3-year CD (Los Angeles & Orange County, CA)
4-Year CD Rates
- Fort Knox Federal Credit Union - 2.20% 4-year CD
- Melrose Credit Union - 2.17% 4-year CD
- 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)
- Andrews Federal Credit Union - 2.05% 4-year CD
- Nationwide Bank - 1.75% ($100K) 1.70% ($500) 4-year CD
- Noteworthy Local Deals
- 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)
- First General Credit Union - 2.25% 4-year CD (Grand Rapids, MI metro)
- 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)
- Our Community Credit Union - 2.15% 4-year CD (Washington State)
- LOMTO Federal Credit Union - 2.15% 4-year CD (parts of New York City)
- Freedom Credit Union - 2.10% add-on 4-year CD (Philadelphia)
- Wings Financial Credit Union - 2.02% 4-year CD (Seattle & Minneapolis Metro areas)
- Alaska USA Federal Credit Union - 2.01% ($100K) 1.91% ($10K) 4-year CD (San Bernardino County, CA; parts of WA & AK)
- HAPO Community Credit Union - 2.00% 4-year CD (WA State)
- Peoples Alliance Credit Union - 1.94% 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
- Andrews Federal Credit Union - 2.30% 5-year CD
- US Bank - 2.15% 59-month CD
- Noteworthy Local Deals
- El Paso Area Teachers FCU - 3.03% ($50K) 2.93% ($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)
- General Electric Credit Union - 2.63% 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)
- Institution for Savings - 2.50% 5-year CD (northeast MA)
- Montauk Credit Union - 2.50% 5-year CD (New York City)
- First General Credit Union - 2.50% 5-year CD (Grand Rapids, MI metro)
- Freedom Credit Union - 2.35% add-on 5-year CD (Philadelphia)
- Alaska USA Federal Credit Union - 2.35% ($100K) 2.25% ($10K) 5-year CD (San Bernardino County, CA; parts of WA & AK)
- 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)
- Peoples Alliance Credit Union - 2.17% 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
- INOVA Federal Credit Union - 2.50% 6-year CD (2.40% step-up)
- Discover Bank - 2.45% 10-year CD (2.50% AAA members)
- Noteworthy Local Deals
- SACU - 3.35% ($90K) 3.30% ($10K) 10-year CD (San Antonio, TX)
- Tecumseh Federal Bank - 3.03% 6-year & 8-year CD (Nebraska)
- Security Service Federal Credit Union - 2.85% ($100K) 2.70% ($500) 7-year CD (parts of Texas, lower rates in CO)
- SACU - 2.85% ($100K) 2.80% ($10K) 7-year (San Antonio, TX)
- Liberty Savings Federal Credit Union - 2.85% 6-year CD (Northern NJ)
- Department of Commerce FCU - 2.80% 7-year CD (Washington DC)
- 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)
- Air Force FCU - 2.75% ($100K) 2.70% ($2.5K) 7-year CD (limited membership)
- 1st Commonwealth Bank of Virginia - 2.60% 7-year CD (DC Metro)
- Teachers Credit Union - 2.50% 71-month CD (parts of Indiana)
- Gateway Metro Federal Credit Union - 2.45% 6-year CD (St. Louis metro)
- 1st Commonwealth Bank of Virginia - 2.40% 6-year CD (DC Metro)
- Randolph-Brooks Federal Credit Union - 2.38% ($75K) 2.32% ($20K) 6-year CD (San Antonio & Austin, TX)
- Royal Bank America - 2.25% 10-year CD (Philadelphia)
Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.
Anonymous - #1, Friday, January 27, 2012 - 8:22 PM
Goldman Sachs Bank also continues to offer a 3.00% ten year FDIC insured CD.
KenBDG - #2, Saturday, January 28, 2012 - 5:33 AM
Thanks for the info on Goldman Sachs CD. Isn't that a brokered CD? I see it's being offered through Vanguard.
Anonymous - #3, Saturday, January 28, 2012 - 9:07 AM
If that is a brokered CD, I do hope you know one better be willing to hold on to it for the full 10 years. You don't just get to pay an EWP and walk away with a good bit of your principal. It has to be sold on the secondary market and you only get the going rate for it at the time. I use brokered CDs for our IRAs but nothing else.
Anonymous - #4, Saturday, January 28, 2012 - 2:14 PM
It is brokered, but for those stuck in the mindset of only "investing" in deposit accounts it's worth considering the 3% over the "top" 2.5% CD. You don't always have to sell for a loss, esp if rates go down even further (which doesn't seem likely, but I bet you thought that a year ago too).
lou - #5, Saturday, January 28, 2012 - 2:49 PM
Many of these brokered CD's aren't liquid, meaning there are no bidders to buy them when you need to sell. I suppose you could get someone to bid, but you probably won't like the price.
Reginald (anonymous) - #6, Sunday, January 29, 2012 - 2:57 AM
Someone just told us that some State of Israel bonds are presently paying a fixed rate of 3.55% for 10-year bonds. Not a bad rate these days, and they send regular interest checks to the bondholders. Has anyone looked into this or have experience with this?
Anonymous - #7, Sunday, January 29, 2012 - 9:02 PM
Your rates for Ally seem to out of wack.
KenBDG - #8, Monday, January 30, 2012 - 6:44 AM
@anonymous #7, please note that I include some long-term CDs that are closed early in the short-term CD lists. I clearly note this after the rate [for example: Ally Bank - 1.49% (1.79% 5-year CD closed after 1 year, see review & risks)]
Bozo - #9, Wednesday, February 1, 2012 - 10:47 PM
As noted in another thread (and over at Bogleheads), Vanguard's brokered CDs do NOT compound interest. Interest on their brokered CDs is paid as credited, to your bank account or to your Vanguard money market fund, it is not compounded back into the CD. This entails a certain amount of re-investment risk, similar to interest from bond coupons. Just be aware of what you are buying.
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