Survey of the Best CD Rates for February 3, 2012

After the Fed's new late-2014 pledge, I was worried the new month was going to bring a surge of rate cuts. A few banks and credit unions did cut their CD rates, but there weren't as many as I had feared. In fact, PenFed actually raised one of its CD rates. Its 7-year CD yield increased from 2.75% to 2.76% APY. In today's world, a one basis point increase is good news. One thing nice about PenFed is that it typically keeps its rates unchanged for the month. So if you're wanting to purchase a long-term CD, you should have plenty of time at PenFed. However, don't forget that PenFed's 5-year and 7-year CDs have an early withdrawal penalty of up to 1 year of interest (see my PenFed CD review).

A few credit unions did cut rates in February. One disappointment was Melrose Credit Union. Its 5-year CD had a large rate cut falling from 2.68% to 2.27% APY. The 4-year CD rate fell by 10 basis points to 2.07%, and the shorter terms fell by 5 basis points. Even with these cuts, the rates remain competitive. However, since its early withdrawal penalty is so harsh (see review), CDs at other credit unions are better deals.

Credit unions weren't the only ones to cut rates. US Bank reduced its special 59-month CD rate from 2.15% to 2.00% APY.

Local CD Deals

We lost another 3.00% CD this week. NavyArmy Federal Credit Union in Corpus Christi Texas reduced its 30-month CD rate from 3.00% to 2.25% APY. The 3.00% club now includes only 3 institutions with a 3.03% APY 5-year Jumbo CD in El Paso Texas, a 3.35% APY 10-year Jumbo CD in San Antonio Texas and a 3.03% APY 6-year CD in Nebraska.

I added two local deals this week. The first addition was a 2.00% APY 3-year CD at Leominster Credit Union which is available in several counties of MA. The second was a 13-month CD special with a rate up to 1.65% APY at Community Trust Bank which has branches in Dallas/Fort Worth Texas and in several cities of Louisiana and Mississippi.

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 3, 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 - 1.11% ($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 - 0.90% 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
• Doral Bank Direct - 1.15% 1-year CD
• CIT Bank - 1.08% ($25K min) add-on & bump-up 1-year CD

• Noteworthy Local Deals

• Community Trust Bank - 1.65% (w/dd) 1.40% (w/chk) 1.15% 13-month CD, review (parts of TX, LA & MS)
• NavyArmy Federal Credit Union - 1.45% ($100K) 1.35% ($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)

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 - 1.36% 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 - 1.85% ($100K) 1.75% ($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)
• 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)
• Fort Knox Federal Credit Union - 1.90% 3-year CD
• Melrose Credit Union - 1.86% 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

• 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)
• 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

• Fort Knox Federal Credit Union - 2.20% 4-year CD
• Digital Credit Union - 2.10% ($25K min w/relationship) 1.85% (no relationship) 4-year CD
• Melrose Credit Union - 2.07% 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)
• 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)
• 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

• 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
• Melrose Credit Union - 2.27% 5-year CD
• US Bank - 2.00% 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)
• 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)
• 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 - 3.35% ($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)
• 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.