Survey of the Best CD Rates for January 6, 2012
For the first week of 2012, there were only a few banks and credit unions in my survey that reduced their CD rates. For the CDs that are nationally available, only Quaint Oak Bank had a rate cut. Its 5-year CD yield fell from 2.20% to 2.15%. Update 1/7/12: It has been reported that Quaint Oak is now restricting CDs to Pennsylvania.
I added KeySource Commercial Bank's 5-year CD to this list since it also has a 2.15% APY. However, its most competitive CDs are short-term CDs. Last week I added its 7-month and 1-year CDs to the survey. Readers may prefer this bank over Quaint Oak due to KeySource's online application.
US Bank continues to offer its special 59-month CD with a 2.25% APY. I consider this to be essentially a 5-year CD.
The best deals for the nationally available CDs continue to be at all-access credit unions. The four main ones are Melrose, Alliant, Digital and Pentagon Federal (PenFed).
There were hopes that PenFed might start offering a 3% 10-year CD, but that didn't happen. On the positive side, PenFed did raise the rate of one of its CDs. Its 1-year CD yield increased from 0.99% to 1.16%. That makes the 1-year CD rate very competitive. I would have preferred higher long-term CD rates, but with signs from the Fed that interest rates may stay low for even past 2013, PenFed may have decided against long-term CD specials. At least PenFed didn't cut its long-term CD rates. They remain competitive. Its 7-year CD rate continues to be the best long-term CD deal that's nationally available without limitations. The 5-year and 4-year CD rates also remain competitive.
Local CD Deals
There were only a few banks and credit unions that cut their CD rates this week. One disappointment was Alaska USA Federal Credit Union. It's a large credit union that offers membership not only to residents of Alaska, but also to residents in parts of Washington State and California. Its CD rates had a big drop this week. I only kept its 4-year and 5-year CDs in my list. Its Jumbo rates remain competitive with a 2.01% APY 4-year CD and a 2.35% APY 5-year CD.
Every now and then a bank or credit union comes out with a new CD special with higher rates. That happened this week at University of Iowa Community Credit Union which began offering two new CD specials with terms of 10 and 22 months. The credit union isn't limited to just the university. Residents of several Iowa counties are also eligible to join. Unfortunately, there isn't any Iowa credit union that makes it easy for anyone in the nation to join. Iowa credit unions have some of the best rates in the nation.
The small 3.00% club remains the same this week with four institutions on the list. These are banks or credit unions offering CD yields of at least 3.00%. Three are in Texas and one is in Philadelphia. [ Update: Soon after this post was first published, the Philadelphia bank, Royal Bank America, reduced its 7-year CD yield from 3.00% to 2.25%.]
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 January 6, 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 - 1.15% 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)
- University of Iowa Community Credit Union - 1.45% ($250K) 1.35% ($100K) 1.25% ($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)
- 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)
- Pentagon Federal Credit Union - 1.16% 1-year 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)
- 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)
- 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
- KeySource Commercial Bank - 1.25% 18-month CD, see account review
- Incredible Bank - 1.20% 19-month CD
- Noteworthy Local Deals
- 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)
- University of Iowa Community Credit Union - 1.85% ($250K) 1.75% ($100K) 1.65% ($1K) 22-month CD special (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)
- 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)
- 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)
- 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)
- 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
- 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)
- Pentagon Federal Credit Union - 2.00% 4-year CD
- Nationwide Bank - 1.85% ($100K) 1.80% ($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)
- 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)
- Charter Oak Federal Credit Union - 2.25% 4-year CD (east CT)
- Freedom Credit Union - 2.10% add-on 4-year CD (Philadelphia)
- 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)
- 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 - 1.98% 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
- Pentagon Federal Credit Union - 2.25% 5-year CD
- US Bank - 2.25% 59-month CD
- Quaint Oak Bank - 2.15% 5-year CD Update 1/7/12: It has been reported that Quaint Oak is now restricting CDs to PA.
- KeySource Commercial Bank - 2.15% 5-year CD, see account review
- 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)
- 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)
- 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)
- Polam Credit Union - 2.45% ($25K) 5-year CD (Los Angeles)
- 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 - 2.20% 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%2.25% 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 - 2.43% ($75K) 2.38% ($20K) 6-year CD (San Antonio & Austin, TX)
Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.
Edit 11:00pm 1/6/2012: Updated Royal Bank America 7-year CD rate which changed soon after the post was published.
Anonymous - #1, Friday, January 6, 2012 - 4:55 PM
Both Royal Bank America and Liberty Savings FCU rates are slashed! Just called them
Anonymous - #2, Friday, January 6, 2012 - 7:43 PM
Something bad is already happening. I was looking for a 5 year CD today and had such a fit trying to get Digital CU to correct the error in my CD that it drove me to look again for banks! DCU doesn't give regular CD forms with info showing amount, correct name/names etc so I decided I had to find a bank. I was shocked to hear that all of the rates I "thought" were suitable from Ken's list were lowered this week! I finally found a bank miles from our city and drove to it today! It was The Cecilian Bank and has locations in several places in my state. It was SO fantastic to be treated so professionally and actually get a paper CD with ALL the info on it I am used to seeing! They even had "both" our names on it like we requested (unlike a certain other CU!) I do hope my experience with DCU is not the norm! The interest rate I got at Cecilian was about the same as I would have gotten with DCU and it was soooo good to get my paper CD to take with me so that I could check it for errors while still in the bank. There were "no" errors on this CD! Thanks Ken for having Cecilian on your list cause I would never have found it otherwise. It is certainly worth the drive!
Anonymous - #3, Friday, January 6, 2012 - 11:25 PM
Quaint Oak restricted CDs offering to PA since Dec. 27, 2011
Paolo (anonymous) - #4, Saturday, January 7, 2012 - 3:09 AM
Capital One/Costco has a 2.55% CD (long-term) that is still available. They also give a cash gift when you open it($20 or $60) based on the type of Costco membership you have. Why isn't this mentioned?
KenBDG - #5, Saturday, January 7, 2012 - 7:43 AM
@anonymous #3, thanks for the comment about Quaint Oak restricting accounts to PA. I've updated the post.
@Paolo, thanks for mentioning Capital One/Costco. I've listed Discover instead since the Discover/AAA rate is the same, and Discover has a much better early withdrawal penalty (see my old Cap One CD review) Since Capital One/Costco does have an extra bonus for new accounts and since I've listed a few close CDs on other terms, I'll add it to the list next week.
Paolo (anonymous) - #6, Saturday, January 7, 2012 - 8:23 AM
Gracias Ken. Capital One/Costco has held that rate awhile and their customer svce. is generally muy bueno. Any rate these days in the mid-2.00's is noteworthy. Feliz Año Nuevo.
Anonymous - #7, Saturday, January 7, 2012 - 2:20 PM
Apple CU has changed early withdrawal penalty - but done it correctly:
"The early withdrawal penalty for 84-month and 120-month certificates will change to 1,095 days of dividends, not to exceed the dividends earned, for certificates opened or renewed on or after February 1, 2012"
https://www.applefcu.org/SinglePages/educator_issuu.html
Anonymous - #8, Saturday, January 7, 2012 - 4:15 PM
Anony #7 "WHO" would buy "any" Seven or Ten Year CD with a THREE year early withdrawal penalty? They would have to be offering them one heck of a fantastic interest rate! My local bank is only offering 2.25% for a TEN year CD! That is definitely NOT acceptable and then you say we have others strangling people with a 3 year EWP?? They certainly must be convinced they don't need our deposits, imo.
Sebastian (anonymous) - #9, Saturday, January 7, 2012 - 8:51 PM
Re: #8: Many depositors (including myself) do not open CDs with the idea that we might break them. I would be very very reluctant to hand that EWP to a bank. I plan and calculate and open CDs based on the premise that it will not be broken. And I've always done OK with them. I do some laddering, and have been able to time things OK so that I usually wished that I'd gone out LONGER and rued that my CD was coming due. I would like to see rates shoot up and have the dilemma of whether or not to break a CD. But I've never had that happen.
Anonymous - #10, Sunday, January 8, 2012 - 10:19 PM
A possible aspect to cover or consider is CUs that will match other's rates. E.g., you could probably get Stanford Federal Credit Union's match policy against US Bank to get a 5 year 2.35% CD. You'd end up with a higher rate and a smaller early withdrawl penalty.
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