Survey of the Best CD Rates for February 24, 2012

If you have a CD ladder and your 5-year CDs are maturing, you are probably very disappointed. It's hard to find banks offering 2.00% APY on 5-year CDs. Last week I had two nationally available banks on my list with 5-year CD rates of at least 2.00%. One of those two State Bank of India cut its 5-year CD yield from 2.02% to 1.96% this week. So now only US Bank's special 59-month CD has a yield of 2.00%.

You can find higher CD rates thanks to credit unions. The top three all-access credit unions on my 5-year CD list are Andrews FCU with a 2.30% APY, Melrose Credit Union with a 2.27% APY and PenFed with a 2.25% APY. Please note that credit unions often make rate changes at the start of each month. With March starting next week, we may see some rate cuts at these credit unions. Fortunately, we have an extra day in February thanks to leap year.

I'm still seeing a few CD specials at banks and credit unions. Sometimes these can be really good deals. Unfortunately, they often have checking relationship requirements. One example that reader me1004 found is Farmers State Bank in Indiana. It's offering a special 25-month CD with a 1.81% APY. A checking account with either direct deposit or automatic payment is required. The bank is currently accepting applications by mail. However, as you might expect from a small bank, they don't make it easy. They're requiring a notarized copy of the driver's license. Small banks will often accept deposits by mail from any state. However, it's common to see them restrict deposits to their local market areas if they see too much demand. Update 2/27/2012: I just received a email reply from Farmers State Bank saying that they are no longer opening accounts by mail for customers outside of our 5 county area and contiguous surrounding areas.

Local CD Deals

One of the credit union rate leaders actually raised its CD rates this week. San Antonio Credit Union (SACU) raised its 10-year CD yield from 3.35% to 3.55%. Its 7-year CD yield increased from 2.85% to 3.05%. These require a $90K minimum deposit. Rates are about 5 basis points lower for a $10K minimum.

I added two institutions to my 1-year CD list this week. Both are offering special 1-year CDs with very competitive rates. Lyons National Bank in New York is offering a special 2.00% APY 1-year CD. Similar to Farmers State Bank above, this requires a checking account with direct deposit. The other institution is City County Credit Union in Florida. It's offering a 1-year IRA CD with a 1.51% APY. Unfortunately, this special rate only applies to the IRA CD.

With the Fed's commitment to keep rates near zero until at least late 2014, banks and credit unions may be more willing to offer short-term CD deals than long-term CD deals. When those CDs mature, I'm sure the institutions are hoping the customers will let their CD rates roll over into new CDs with regular rates.

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 24, 2012

Under 1-Year CD Rates

• Ally Bank - 1.16% (1.74% 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 - 1.11% ($100K) 0.90% ($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)
• American Plus Bank - 0.95% 6-month CD (Los Angeles metro)
• CapitalSource Bank - 0.95% 8-month CD (California)
• Industrial Credit Union - 0.90% 6-month CD (Boston metro area)

1-Year CD Rates

• Ally Bank - 1.45% (1.74% 5-year CD closed after 1 year, see review & risks)
• Pentagon Federal Credit Union - 1.16% 1-year CD
• KeySource Commercial Bank - 1.15% 1-year CD, see account review
• Doral Bank Direct - 1.15% 1-year CD
• CIT Bank - 1.08% ($25K min) add-on & bump-up 1-year CD

• Noteworthy Local Deals

• Lyons National Bank - 2.00% 1-year CD (with checking and DD) (between Rochester & Syracuse, NY)
• Community Trust Bank - 1.65% (w/dd) 1.40% (w/chk) 1.15% 13-month CD, review (parts of TX, LA & MS)
• City County Credit Union - 1.51% 1-year IRA CD (many FL counties)
• Gulf Coast Credit Union - 1.50% 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)
• Dupaco Community Credit Union - 1.30% 15-mo CD (parts of IA, IL & WI)
• 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 - 1.55% (1.74% 5-year CD closed after 18 months, see review & 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

• Gulf Coast Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
• 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)
• Cross River Bank - 1.25% 18-month CD (NJ in NYC metro area)

2-Year CD Rates

• Farmers State Bank - 1.81% 25-month CD (checking required) Update 2/27/12: Now local to parts of Indiana only
• Ally Bank - 1.59% (1.74% 5-year CD closed after 2 years, see review & risks)
• Pentagon Federal Credit Union - 1.37% (2.76% 7-year CD closed after 2 years, see review & risks)
• Melrose Credit Union - 1.36% 2-year CD
• Alliant Credit Union - 1.30% ($1K min) 2-year CD
• CIT Bank - 1.26% ($25K min) add-on & bump-up 2-year CD
• KeySource Commercial Bank - 1.25% 2-year CD, see account review

• Noteworthy Local Deals

• Gulf Coast Credit Union - 1.85% 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)
• 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)
• 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)
• First American Credit Union - 1.41% ($50K) 2-year CD (south of Phoenix, AZ)
• Wings Financial Credit Union - 1.41% 2-year CD (Seattle & Minneapolis Metro areas)
• mBank - 1.40% 2-year CD (parts of Michigan)

3-Year CD Rates

• Melrose Credit Union - 1.86% 3-year CD
• Pentagon Federal Credit Union - 1.83% (2.76% 7-year CD closed after 3 years, see review & risks)
• Ally Bank - 1.64% (1.74% 5-year CD closed after 3 years, see review & risks)
• AmTrustDirect - 1.55% 3-year CD
• KeySource Commercial Bank - 1.50% 3-year CD, see account review

• Noteworthy Local Deals

• El Paso Area Teachers FCU - 2.37% ($50K) 2.27% ($500) 36 & 30-month CD (El Paso, TX)
• NavyArmy Federal Credit Union - 2.25% 30-month CD (Corpus Christi, TX metro)
• 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) 1.90% ($1K) 39-month CD (several parts of Iowa)
• Department of Commerce FCU - 2.05% 3-year CD (Washington DC)
• Leominster Credit Union - 2.00% 3-year CD (parts of MA)
• Our Community Credit Union - 2.00% 3-year CD (Washington State)
• 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)
• Dupaco Community Credit Union - 1.91% 35-mo CD (parts of IA, IL & WI)
• 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)
• 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

• Melrose Credit Union - 2.07% 4-year CD
• Pentagon Federal Credit Union - 2.06% (2.76% 7-year CD closed after 4 years, see review & risks)
• Andrews Federal Credit Union - 2.05% 4-year CD
• KeySource Commercial Bank - 1.75% 4-year CD, see account review
• Nationwide Bank - 1.70% ($100K) 1.65% ($500) 4-year CD

• Noteworthy Local Deals

• Department of Commerce FCU - 2.50% 4-year CD (Washington DC)
• 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)
• 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)
• Schools Federal Credit Union - 2.08% ($90K w/relationship) 1.98% (w/o relationship) 4-year CD (Los Angeles Metro area)
• 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)

5-Year CD Rates

• Andrews Federal Credit Union - 2.30% 5-year CD
• Navy Federal Credit Union - 2.30% ($100K) 2.20% ($20K) 5-year CD (membership restrictions)
• Melrose Credit Union - 2.27% 5-year CD
• Pentagon Federal Credit Union - 2.25% 5-year CD
• Pentagon Federal Credit Union - 2.20% (2.76% 7-year CD closed after 5 years, see review & risks)
• US Bank - 2.00% 59-month CD (may vary by state)
• State Bank of India (New York) - 1.96% 5-year CD
• KeySource Commercial Bank - 1.95% 5-year CD, see account review

• Noteworthy Local Deals

• Belmont Savings Bank - 3.00% (active checking required) 5-year CD (Massachusetts)
• El Paso Area Teachers FCU - 2.98% ($50K) 2.88% ($500) 5-year CD (El Paso, TX)
• Department of Commerce FCU - 2.80% 5-year CD (Washington DC)
• 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)
• First General Credit Union - 2.50% 5-year CD (Grand Rapids, MI metro)
• Alaska USA Federal Credit Union - 2.35% ($100K) 2.25% ($10K) 5-year CD (San Bernardino County, CA; parts of WA & AK)
• Schools Federal Credit Union - 2.33% ($90K w/relationship) 2.23% (w/o relationship) 5-year CD (Los Angeles Metro area)
• 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)
• Freedom Credit Union - 2.25% add-on 5-year CD (Philadelphia)
• Peoples Alliance Credit Union - 2.11% 5-year CD (South Florida)
• First Choice Bank - 2.05% ($50K) 2.00% ($2.5K) 5-year CD (Los Angeles & Orange County, CA)
• BBVA Compass - 2.00% 5-year CD (parts of AL, AZ, CA, CO, FL, NM & TX)

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.80% ($20K) 7-year CD (membership restrictions)
• Pentagon Federal Credit Union - 2.76% 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 - 3.55% ($90K) 3.51% ($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 - 3.05% ($100K) 3.00% ($10K) 7-year (San Antonio, TX)
• 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)
• 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.