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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 April 20, 2012

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The special 1-year and 2-year CD rates at AloStar Bank of Commerce that I first reported on last week, didn't last long. These were promotional rates, and they ended this week so that knocks AloStar from the top nationally available 1-year and 2-year CD rate spots. The top 1-year CD rate goes back to Doral Bank Direct and KeySource Commercial Bank which both offer 1.15% APY. The top 2-year CD rate goes back to Melrose Credit Union which offers a 1.36% APY.

Another good short-term CD deal went away this week. This one was a special 15-month CD that was offered by McGraw-Hill Federal Credit Union. The credit union continues to offer a 2.25% APY 5-year CD which is near the top for nationally available 5-year CD rates.

We lost a few top long-term CD rates this week. KeySource Commercial Bank reduced its 4-year and 5-year CD yields by 10 basis points. Its 5-year CD yield is now 1.85%.

INOVA Federal Credit Union slashed its long-term CD rates. Its 5-year CD yield fell from 2.10% to 1.35%, and its 6-year CD yield fell from 2.10% to 1.40%. It seems like it can take some credit unions a while before they realize how competitive their rates are. Once they see all the deposits they have received, they slash the rates. I've seen this from several all-access credit unions that have offered very competitive rates. Fortunately, there are some all-access credit unions that have maintained their top CD rates. These include Melrose Credit Union, Alliant Credit Union and PenFed.

There was some good news this week. I added three new institutions. Jacksonville Bank has a top 5-year CD yield of 1.90%. Customers can qualify for another 25 basis points if they have a checking account and direct deposit. Accounts can be opened online by people in any state (see post).

Another all-access credit union is offering a 2.25% APY 5-year CD. It's Affinity Plus Federal Credit Union which has branches throughout Minnesota. It has an online application that makes it easy for anyone to join and to open the CD.

Long-time readers may remember Patelco Credit Union. It used to offer top CD rates several years ago. After several years with no noteworthy CD rates, Patelco has finally come out with something competitive (a 7-year CD special with a 2.50% APY). It's a large California credit union that makes it easy for anyone to join via an association membership (see post).

Local CD Deals

There weren't many changes to the local CD deals this week. I moved SunTrust Bank's 2.00% 6-year CD special from the nationwide list to the local list. Rates vary by zip code, and the 2.00% APY no longer shows for most zip codes. I only found a 2.00% APY for zip codes in Central and South Florida.

I just added one local deal this week. Island Federal Credit Union with branches in Long Island New York is offering a special 18-month CD with a 1.26% APY.

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 April 20, 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.


  Tags: CD rates

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Comments
14 Comments.
Comment #1 by Anonymous posted on
Anonymous
Ken, I wish you would spend more time on seeking out money market and the highest yielding checking accounts than on CDs. The rates quoted here are so incredibly low that no one in their right mind would consider investing money in a CD. You'd have to be crazy!

With the true rate of non-housing inflation clocking in at just a bit less than 23% for March 2012 (http://seekingalpha.com/article/502481-american-institute-for-economic-research-says-consumer-prices-rising-at-22-8-per-annum), and given the long-term probability of much higher, even runaway inflation or hyperinflation, caused by irresponsible Fed money-printing policies, CD and bond investors have a very high probability of being have their wealth wiped out in 5-10 year term accounts. To make matters worse, some of the banks are changing the terms and conditions of their early withdrawal penalties, and the NCUA has backed up the unfair policies of one of its member credit unions in that regard.

So, for me, I am more interested in learning about the totally liquid accounts. They don't pay much interest either, but, at least, I can move money in and out of them. I try to keep up with the inflation by buying and selling precious metals, in synch with the efforts of government-sponsored manipulations, to make a better return on my cash. I thought I was doing very well by playing my hand against the increasingly open and obvious USA/UK government-sponsored precious metals manipulation. However, even my average returns have been less than 23% per year. The current inflation is frightening, and I'm afraid it will get much worse.

1
Comment #4 by Apache (anonymous) posted on
Apache
#1      Ken is giving us these particular rates because he knows what this group is looking for.  If you want different investments, I suggest you check out websites which give info on annuities, bonds, stocks and all kinds of other ways you can lose more money, imo.  This is the "we don't like to take risks" group!

4
Comment #2 by lou posted on
lou
I know the CPI understates inflation, but 23% annually seems far-fetched to say the least. I would like to see their numbers to understand how they calculated it. BTW, Ken has a summary blog every week for money market and checking accounts.

11
Comment #6 by Kristen (anonymous) posted on
Kristen
I like the Israeli govt. bonds at 3.79% for 10 years.  Pretty safe, in my opinion, with a 50-plus year track record, interest pd. to me twice a year like clockwork.  Easy to buy and sell, similar to the US savings bond process.  Much better yield than bank or credit union CD's.

1
Comment #7 by lou posted on
lou
Kristen, where do you buy Israeli bonds and are the bonds denominated in dollars. If not, do you need to watch the Israeli shekel to see how it is doing against the dollar.

2
Comment #8 by Anonymous posted on
Anonymous
I googled the bonds.  3.75 for 10 years.  I feel that is low for a 10 year period.  They are probably taxable and not insured.   I did open a few years ago a 10 year CD at PENFED for 5% which was insured.  I still felt at the time of opening that the rate was low.  Looks good for now.

1
Comment #10 by James (anonymous) posted on
James
3.79% low for 10 years?   I disagree with #8.  Sign me up.  How exactly do you buy these?

1
Comment #15 by Anonymous posted on
Anonymous
#10   What if intrest rates shoot up in a couple of years?  10 years is a long time.  If you are doing this as part of a ladder that is OK.  These bonds are not insured.   Things are a little dicey in the Middle east too.  But this is a personal choice.  People are starting to take a lot of risk

2
Comment #11 by Anonymous posted on
Anonymous
They have a toll free number that is on the website.  it appears that they will send regular interest checks which is a nice feature. Any one have experience with this?

1
Comment #12 by lou posted on
lou
Kristen, what if you wanted to sell the bonds before the 10 year maturity. Are they liquid; is there a secondary market where the bonds can be sold? Or are they like US saving bonds, and they can be sold with a prepayment penalty.

1
Comment #14 by Anonymous posted on
Anonymous
lou- PS, in particular, see the brief paragraph on selling before maturity....unfortunately, they don't look all that liquid.

1
Comment #16 by Kristen (anonymous) posted on
Kristen
Lou-

Not sure about your question.  We have never sold them before maturity.  There may be some information about that on their website.  And re: Anonymous #15 and "10 years being a long time":  we already had some 7 and 10 year bank Cd's, so these don't look so long to us.  Plus, the big difference between 3.79% and the lousy bank CD rates seem to make these worthwhile.  But that's a personal choice.

1
Comment #17 by Anonymous posted on
Anonymous
From what I have read,  the bond proces fluctuate so it's like any bond (ie.Muncipal bond).  You get face value only at maturity.  If intrest rates go up the value of the bond (before maturity) will go down. Also,  you have to pay fees to sell before maturity (To a broker).

 

To redeem the bonds you have to fill in forms  and mail them in.  Once they get the forms (From the site): Once material is received and processed, a check will be mailed to the address of record. Please allow up to a maximum of 3 weeks to receive the check

1