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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Survey of the Best CD Rates for February 10, 2012

POSTED ON BY

A few of the internet banks cut their CD rates this week. Ally Bank's 5-year CD rate fell from 1.79% to 1.74% APY. This 5-year CD isn't high enough to make my 5-year CD list. I still include this CD due to its mild early withdrawal penalty of 60 days of interest.

The other two internet banks that cut rates were American Express Bank and Nationwide Bank.

American Express Bank's 2-year CD rate plummeted from 1.30% to 0.80% APY. That knocked it off my 2-year CD list. I hope I'll never have to include sub-1.00% rates on my 2-year CD list. If you're looking for a 2-year CD from a bank, CIT Bank's 2-year Achiever CD with a 1.26% APY is the best deal. Not only does it have a top rate, but it also has an add-on and bump-up feature (see my CIT Bank CD review).

Nationwide Bank reduced its 4-year CD rates by 5 basis points. The Jumbo 4-year CD rate is now 1.70% APY. Nationwide Bank's 4-year CD remains on top for nationally available banks.

For the 5-year CDs, there's a new bank leader. State Bank of India (New York) is offering a 2.02% APY on its 5-year CD. I did another review of this bank and its CDs on Thursday. People in any state can open a CD by mail, but as I described in my review, the bank doesn't make it easy.

State Bank of India's 5-year CD yield just edges out US Bank's 59-month CD special which continues to have a 2.00% APY. You will probably find the CD application process easier at US Bank. However, US Bank has a very harsh early withdrawal penalty (see my US Bank CD review).

As you can see below, the best long-term CD rates are from all-access credit unions like PenFed, Fort Knox FCU and Andrews FCU. Their CD rates exceed the banks by up to 50 basis points.

Update 10:00pm ET 2/10/2012: Digital Credit Union CD rates fell soon after the post was first published. The 5-year Jumbo CD rate is now 1.86% APY with a relationship and 1.61% APY without a relationship. All DCU CDs have been removed from the lists below.

Local CD Deals

We lost another 3-percent CD this week. El Paso Area Teachers FCU reduced its 5-year Jumbo CD yield from 3.03% to 2.98% APY. That leaves only two institutions in the 3-percent club: 3.35% APY 10-year CD at San Antonio Credit Union (SACU) and the 3.03% APY 6-year CD at Tecumseh Federal Bank in Nebraska. You can find a few more institutions with 3.00%+ CDs in our CD rate tables, but these are small banks in low populated areas or small credit unions with very narrow fields of membership.

I added two local deals this week. The first addition is a 2.33% APY 5-year Jumbo CD at Schools Federal Credit Union in Los Angeles. This is a relationship rate. Without a relationship, the rate is 10 basis points lower. The non-Jumbo rates are just a little bit lower.

The second addition is from Dupaco Community Credit Union which has branches in the Tri-State Area of Illinois, Iowa and Wisconsin. I added its two competitive CD specials: a 1.30% APY 15-month CD and a 1.91% APY 35-month CD.

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 February 10, 2012

Under 1-Year CD Rates

  • Noteworthy Local Deals

1-Year CD Rates

  • Noteworthy Local Deals

18-month CD Rates

  • Noteworthy Local Deals

2-Year CD Rates

  • Noteworthy Local Deals

3-Year CD Rates

  • Noteworthy Local Deals

4-Year CD Rates

  • Noteworthy Local Deals

5-Year CD Rates

  • Noteworthy Local Deals

Over 5-Year CD Rates

  • Noteworthy Local Deals

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

Edit 10:00pm ET 2/10/2012: Digital Credit Union CD rates fell soon after the post was first published. All DCU CDs have been removed from the lists.

  Tags: CD rates

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Comments
7 comments.
Comment #1 by Dicee (anonymous) posted on
Dicee
Still many 2% or higher 5 yr cds in the Northeast.  Teacher's Fed CU is at 2.26%, 1st central savings (2.05%), Hanover Bk. (2.0%), Sperry Cu (2.05%), People's Alliance CU in NY (2.11%), etc. wonder why they didnt make the list. Cheers.

1
Comment #2 by Anonymous posted on
Anonymous
Digital Credit Union certificate rates have gone down substantially.

 

This site has the old, higher rates listed.

 

Please check dcu.org under "checking/savings" and then "certificates" to find the new lower rates for 5 year cd's....     I didn't even compare the shorter terms.  

 

1
Comment #3 by KenBDG posted on
KenBDG
Thanks for the note on DCU. Looks like the CD rates fell soon after I checked them on Friday afternoon. I've removed DCU from the lists.

1
Comment #4 by Anonymous posted on
Anonymous
I just checked the Digital certificate rates and they are the same.  What have they lowered the 5 year CD to?  Maybe they have not updated the entire webpage.  I noticed they have a new date for savings account changes 2/10/12 but the CDs still have the old date and have not been changed yet.  Too bad!  Another ship sunk!

1
Comment #5 by Anonymous posted on
Anonymous
Digital
Jumbo Certificates – Minimum balance of $25,000 is required to open your account.
Compare to other jumbo certificates having $90,000 to $100,000 minimums.

Terms / FeaturesOur Best Rates Dividend RateAnnual Percentage Yield

60 months. 1.84% 1.86%

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Comment #6 by Anonymous posted on
Anonymous
Can someone tell me what is the procedure for buying a CD from Penfed which does not have shared branches?  They told me they have to have the money in the saving account I already set up with them but I have not gotten the signature card yet and they claim to need that returned before I can get the CD. One rep told me when I get the cards to just fax it back to them.  They will accept a faxed signature.

They also said one can buy CDs online but what do we do about a signature if we buy on-line?  She did not know the answer.  Does anyone here know what is the fastest way to do this?  I am having the money wired to them to get the CD quicker but now the signature cards may be a problem.  I would appreciate any advice you can share about how you handled the process with Penfed and got your CDs as soon as possible,  I don't want their interest rates to go lower while I am trying to do this.  Thanks!

2
Comment #7 by Anonymous posted on
Anonymous
you can get the penfed copy online

1
Comment #8 by Anonymous posted on
Anonymous
#7:  I found the "forms" but can't find the signature card they say we have to sign and fax back to them. Is that the copy you are referring to?   Also, do you know if they accept faxed signatures?  Thanks!

1