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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 May 11, 2012

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One bit of good news this week was at Ally Bank which increased its 5-year CD yield from 1.66% to 1.69%. Ally now has some competition on 5-year internet CDs with a mild early withdrawal penalty. Barclays officially launched its internet bank this week, and its 5-year CD yield of 1.75% is higher than Ally's yield. Barclays' early withdrawal penalty is 3 months of interest which is just a little larger than Ally's 2 months of interest. You can see how these two CDs compare when closed early in my new CD comparison post.

Another bit of good news was an addition to the 5-year CD list. I added Astera Credit Union's Jumbo 5-year CD which has a 2.25% APY for a $50K minimum deposit (2.15% APY for a $500 minimum). This CD now has the top spot for nationally available 5-year CD rates. The credit union provides an easy way for anyone to qualify, and it has an online application (see review).

There were two disappointments in my nationally available list of CD rates. Incredible Bank cut its 19-month CD yield from 1.20% to 1.00%. That took it off my list. I replaced it with Doral Bank Direct's 18-month CD which has a 1.15% APY. Its 1-year CD also has a 1.15% APY, and that continues to be on top of the 1-year CD list. It's one of the rare occasions that a bank has a higher rate than the all-access credit unions like Melrose and Alliant. I did an updated review of Doral Bank Direct CDs this week. It appears Doral has made some improvements in the CD opening and closing procedures since my last review.

The second disappointment was US Bank's rate cut of its 59-month CD special. The yield fell from 2.00% APY to 1.80% APY in some states. In other states it remained at 1.75% APY.

Local CD Deals

There were more local CD rate cuts this week on my list than last week. The rate leader El Paso Area Teachers FCU cut all of its CD rates. Its 5-year Jumbo CD yield fell from 2.98% to 2.83%. That remains the 5-year CD rate leader for large balances (Belmont Savings 3.00% 5-year CD only applies to deposits up to $25K).

Some of the cuts this week were so large that I removed the institutions from my list. These include First Republic Bank, Mbank, Cross River Bank, Bank of the Panhandle and Tecumseh Federal Bank.

I just learned today that Bank of the West's 5-year premium money market CD yield fell from 2.00% to 1.80%. This was for California. Rates may vary by state. There are still a couple large regional banks offering 2.00% 5-year CDs. BBVA Compass is still offering 2.00% in the western states. It's only 1.75% in Texas, Alabama and Florida. Washington Federal which has branches in several western states is still offering 2.05% APY for a $95K minimum and a 2.00% APY for a $1K minimum.

I added two credit unions to the list. One is Hughes Federal Credit Union in Arizona which is offering a special 29-month CD with yields up to 1.51%. The other addition was Via Credit Union in Indiana. It's offering a 2.27% APY 5-year 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 May 11, 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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