Survey of the Best CD Rates for June 22, 2012

This week there were two surprise rate increases at Ally Bank. Early this week, the 5-year CD yield increased from 1.65% to 1.69%. Today, there was another rate increase. It's now 1.73% APY. As DA reader cumulus noted in this forum thread, we have seen many rate oscillations at Ally. It does make you wonder about Ally's strategy. Why not just hold rates steady? Perhaps it's related to Ally's supposed agreement with the FDIC that requires Ally not to be one of the nation's top five rate payers, as measured by Bankrate.com? I looked at Bankrate.com's 5-year CD rate table, and Ally's new 1.73% CD just happens to be 6th from the top. Coincidence?

For those who just recently opened an Ally 5-year CD, don't forget you will get the benefit of Ally's Ten Day Best Rate Guarantee. According to Ally, when you fund your CD within ten days of opening (including your open date) or when your Ally CD renews, you automatically get the best rate Ally offers during those ten days. You may also be able to benefit from Ally's Loyalty Rewards Program for CD renewals.

With this latest Ally rate bump, Ally's 5-year CD now has the advantage compared to Barclays' 1.80% 5-year CD when the CDs are closed early after 1 to 2 years. Last week Barclays had a slight advantage for 18 months and 2 years. Barclays' early withdrawal penalty is just a little bit larger (3 months of interest) than Ally's penalty of 60 days of interest. I have more details and risks of this strategy in my post on Comparison of Long-Term CD Rates After Early Withdrawal Penalties.

If you don't care about the early withdrawal penalty, the highest 5-year CD rate at a bank is 1.91% APY. Two banks now have this rate. Last week State Bank of India New York increased its 5-year CD yield from 1.81% to 1.91%. This week The National Republic Bank of Chicago did the same thing. Both of these banks allow people from any state to open the CDs without a branch visit. However, I would give the advantage to The National Republic Bank of Chicago since they have an online application.

There wasn't all good news this week. The "over 5-year" rate leader cut its rate this week. Apple Federal Credit Union lowered its 10-year CD yield from 2.70% to 2.40% APY. For this category, the rate leader is now Navy Federal Credit Union with a 2.55% APY 7-year Jumbo CD. However, this isn't completely nationally available since new members must have a connection with the military. Close behind Navy Federal is Patelco which continues to offer a 2.50% APY 7-year CD or IRA CD. Unlike Navy Federal, there's an association that anyone can join to qualify for Patelco membership.

Local CD Deals

It seems like most of the rate cuts for the local deals are coming from the long-term CDs. As we have seen in the last few months, CD rates around 2.50% tend not to last long. There were a few more examples this week.

First, Crescent Bank & Trust in Louisiana cut its 5-year CD yield from 2.50% to 2.00%.

Wayne Savings Community Bank in Ohio had the same rate reduction on its 10-year CD. It's now 2.00% APY.

Finally, we had another small rate cut at Randolph-Brooks Federal Credit Union in Texas. Its CD rates fell 5 basis points this week. Its 7-year CD yields continues to fall closer to 2.00%. Its APYs now range from 2.38% APY for a $75K deposit to 2.22% APY for a $1K deposit.

One small bit of good news was the addition of The MINT National Bank which is located north of Houston. Its offering two competitive long-term CD rates: 2.10% APY for a 5-year term and 1.80% APY for a 4-year term.

Another addition to the list is BBVA Compass. I added its 15-month and 2-year CDs to the list. They're not exceptionally competitive, but they're respectable in today's awful interest rate environment. The 2-year CD has a 1.25% APY and the 15-month CD has a 1.00% APY. BBVA Compass continues to offer a 2.00% APY 5-year CD. These can vary by state, but they appear to be currently available in all of the states where BBVA Compass has branches. I often include large banks like BBVA Compass in the local deals list even if the CD rates aren't exceptional. I'm a little easier on large banks since their CDs are available to many people in several states.

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 June 22, 2012

Under 1-Year CD Rates

• EverBank - 1.25% checking/MMA intro 6-month rate ($100K/$50K max) account review
• Ally Bank - 1.15% (1.73% 5-year CD closed after 6 months, see review & risks)
• Ally Bank - 0.94% 11-month No-Penalty CD, see account review
• Barclays - 0.90% (1.80% 5-year CD closed after 6 months, see review & risks)
• Colorado Federal Savings Bank - 0.80% 6-month CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 1.45% ($250K) 1.35% ($100K) 1.25% ($1K) 11-month CD (several parts of Iowa)
• Miami Postal Service Credit Union - 1.26% ($25K) 9-month CD (Southeast FL)
• Doral Bank NY - 1.20% MMA guaranteed for 6 months (NYC)
• Homebanc, N.A. - 1.15% ($100K max) 3-month CD (Central & West FL)
• Veridian Credit Union - 1.11% ($100K) 0.90% ($1K) 7-month CD (several parts of Iowa)
• Gulf Coast Credit Union - 1.10% 6-month CD (Corpus Christi, TX metro)
• First Choice Bank - 1.00% ($50K) 0.95% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
• LOMTO Federal Credit Union - 1.00% 6-month CD (parts of New York City)
• BBVA Compass - 1.00% 15-month CD (parts of AZ, CA, CO, NM, AL, FL, TX)

1-Year CD Rates

• Ally Bank - 1.44% (1.73% 5-year CD closed after 1 year, see review & risks)
• Barclays - 1.35% (1.80% 5-year CD closed after 1 year, see review & risks)
• Doral Bank Direct - 1.15% 1-year CD, account review
• CIT Bank - 1.10% ($25K min) add-on & bump-up 1-year CD
• Melrose Credit Union - 1.10% 1-year CD
• Colorado Federal Savings Bank - 1.05% 1-year CD

• Noteworthy Local Deals

• City County Credit Union - 1.51% 1-year IRA-only CD (many FL counties)
• Gulf Coast Credit Union - 1.50% 12-month CD (Corpus Christi, TX metro)
• Community Trust Bank - 1.40% (w/dd) 1.15% (w/chk) 0.90% 13-month CD, review (parts of TX, LA & MS)
• University of Iowa Community Credit Union - 1.35% ($250K) 1.25% ($100K) 1.15% ($1K) 13-month CD (several parts of Iowa)
• General Electric Credit Union - 1.26% ($100K) 1-year CD (Cincinnati OH metro)
• First American Credit Union - 1.26% ($50K) 1-year CD (Arizona)
• Libertad Bank - 1.20% 1-year CD (Texas)
• LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
• Harris County Credit Union - 1.16% ($95K) 1-year CD (Houston)
• Doral Bank NY - 1.10% checking guaranteed for 12 months (NYC)
• First Choice Bank - 1.10% ($50K) 1.05% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)

18-month CD Rates

• Ally Bank - 1.54% (1.73% 5-year CD closed after 18 months, see review & risks)
• Barclays - 1.50% (1.80% 5-year CD closed after 18 months, see review & risks)
• Doral Bank Direct - 1.15% 18-month CD, account review
• Hanscom Credit Union - 1.15% 18-month CD

• Noteworthy Local Deals

• Gulf Coast Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
• Libertad Bank - 1.50% 15-month CD (Texas)
• Veridian Credit Union - 1.45% ($100K) 1.25% ($1K) 15-month CD (several parts of Iowa)
• El Paso Area Teachers FCU - 1.41% ($50K) 1.31% ($500) 18-month CD (El Paso, TX)
• Island Federal Credit Union - 1.21% 18-month CD (Suffolk & Nassau County, NY)
• First Choice Bank - 1.20% ($50K) 1.15% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)

2-Year CD Rates

• Ally Bank - 1.58% (1.73% 5-year CD closed after 2 years, see review & risks)
• Barclays - 1.57% (1.80% 5-year CD closed after 2 years, see review & risks)
• Melrose Credit Union - 1.36% 2-year CD
• CIT Bank - 1.25% ($25K min) add-on & bump-up 2-year CD
• Patelco Credit Union - 1.24% (2.50% 7-year CD closed after 2 years, see review & risks)

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 1.85% ($100K) 1.75% ($1K) 22-month CD special (several parts of Iowa)
• Gulf Coast Credit Union - 1.85% 2-year CD (Corpus Christi, TX metro)
• Veridian Credit Union - 1.70% ($100K) 1.50% ($1K) 25-month CD (several parts of Iowa)
• Hughes Federal Credit Union - 1.51% ($99K) 1.41% ($50K) 1.31% ($1K) 29-month CD (Arizona)
• Harris County Credit Union - 1.51% ($95K) 1.21% ($2.5K) 2-year CD (Houston)
• First American Credit Union - 1.41% ($50K) 2-year CD (Arizona)
• LOMTO Federal Credit Union - 1.40% 2-year CD (parts of New York City)
• Wings Financial Credit Union - 1.31% 2-year CD (Seattle & Minneapolis Metro areas)
• BBVA Compass - 1.25% 2-year CD (parts of AZ, CA, CO, NM, AL, FL, TX)

3-Year CD Rates

• Melrose Credit Union - 1.76% 3-year CD
• Patelco Credit Union - 1.66% (2.50% 7-year CD closed after 3 years, see review & risks)
• Barclays - 1.65% (1.80% 5-year CD closed after 3 years, see review & risks)
• Ally Bank - 1.63% (1.73% 5-year CD closed after 3 years, see review & risks)
• AmTrustDirect - 1.55% 3-year CD
• Doral Bank Direct - 1.50% 3-year CD, account review

• Noteworthy Local Deals

• NavyArmy Community Credit Union - 3.00% 30-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 2.45% ($250K) 2.35% ($100K) 2.25% ($1K) 33-month CD (several parts of Iowa)
• Crescent Bank & Trust - 2.20% 37-month CD (Louisiana)
• El Paso Area Teachers FCU - 2.07% ($50K) 1.96% ($500) 36 & 30-month CD (El Paso, TX)
• Sea Comm Federal Credit Union - 2.02% 3-year CD (Northern NY)
• Gulf Coast Credit Union - 2.02% 3-year CD (Corpus Christi, TX metro)
• Veridian Credit Union - 2.00% ($100K) 1.80% ($1K) 39-month CD (several parts of Iowa)
• EBSB Direct - 1.80% 3-year internet CD (New England & New York State)
• First American Credit Union - 1.76% ($50K) 3-year CD (Arizona)
• LOMTO Federal Credit Union - 1.75% 3-year CD (parts of New York City)
• Wings Financial Credit Union - 1.71% 3-year CD (Seattle & Minneapolis Metro areas)

4-Year CD Rates

• Melrose Credit Union - 1.96% 4-year CD
• Patelco Credit Union - 1.87% (2.50% 7-year CD closed after 4 years, see review & risks)
• Justice Federal Credit Union - 1.85% ($100K) 1.75% ($500) 4-year CD, account review
• Barclays - 1.69% (1.80% 5-year CD closed after 4 years, see review & risks)
• Ally Bank - 1.66% (1.73% 5-year CD closed after 4 years, see review & risks)
• Alliant Credit Union - 1.65% 4-year CD
• Barclays - 1.60% 4-year CD
• Nationwide Bank - 1.60% ($100K) 1.55% ($500) 4-year CD
• Ally Bank - 1.45% Raise-Your-Rate 4-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 49-month CD (several parts of Iowa)
• Crescent Bank & Trust - 2.25% 44-month CD (Louisiana)
• Sea Comm Federal Credit Union - 2.25% 4-year CD (Northern NY)
• Schools Federal Credit Union - 2.08% ($90K w/relationship) 1.98% (w/o relationship) 4-year CD (Los Angeles Metro area)
• LOMTO Federal Credit Union - 2.05% 4-year CD (parts of New York City)
• Via Credit Union - 2.01% 4-year CD (parts of Indiana)
• mBank - 2.00% 4-year CD (parts of Michigan)
• Wings Financial Credit Union - 1.86% 4-year CD (Seattle & Minneapolis Metro areas)
• The MINT National Bank - 1.80% 4-year CD (Houston area)
• Department of Commerce FCU - 1.70% 4-year CD (Washington DC)

5-Year CD Rates

• Justice Federal Credit Union - 2.20% ($100K) 2.10% ($500) 5-year CD, account review
• Melrose Credit Union - 2.17% 5-year CD
• US Senate Federal Credit Union - 2.12% ($60K) 2.07% ($20K) 5-year CD
• Navy Federal Credit Union - 2.05% ($100K) 1.90% ($20K) 5-year CD (membership restrictions)
• Patelco Credit Union - 2.00% (2.50% 7-year CD closed after 5 years, see review & risks)
• Astera Credit Union - 2.00% ($50K) 1.90% ($500) 5-year CD (account review)
• The National Republic Bank of Chicago - 1.91% 5-year CD
• State Bank of India, New York - 1.91% 5-year CD
• US Bank - 1.80% 59-month CD (1.75% in some states)
• Barclays - 1.80% 5-year CD

• Noteworthy Local Deals

• Belmont Savings Bank - 3.00% ($25K max, active checking required) 5-year CD (Massachusetts)
• El Paso Area Teachers FCU - 2.58% ($50K) 2.48% ($500) 5-year CD (El Paso, TX)
• Ukrainian Selfreliance FCU - 2.55% ($75K) 2.50% ($500) 5-year CD (Philadelphia, PA)
• First American Credit Union - 2.52% ($50K) 5-year CD (Arizona)
• Sea Comm Federal Credit Union - 2.49% 5-year CD (Northern NY)
• SACU - 2.36% ($90K) 2.30% ($10K) 5-year CD (San Antonio, TX)
• LOMTO Federal Credit Union - 2.35% 5-year CD (parts of New York City)
• Denver Community Credit Union - 2.35% ($50K) 2.10% ($100) 5-year CD (Denver County)
• Schools Federal Credit Union - 2.33% ($90K w/relationship) 2.23% (w/o relationship) 5-year CD (Los Angeles Metro area)
• General Electric Credit Union - 2.33% 5-year CD (Cincinnati OH metro)
• CorePlus Federal Credit Union - 2.25% 5-year CD (Eastern CT)
• Wings Financial Credit Union - 2.22% 5-year CD (Seattle & Minneapolis Metro areas)
• Via Credit Union - 2.22% 5-year CD (parts of Indiana)
• American Eagle Bank of Chicago - 2.10% ($100K) 2.00% ($500) 5-year CD (Chicago, IL)
• The MINT National Bank - 2.10% 5-year CD (Houston area)
• Miami Postal Service Credit Union - 2.02% 5-year CD (Southeast FL)
• Space City Credit Union - 2.02% 5-year CD (Houston, TX)
• Freedom Credit Union - 2.00% add-on 5-year CD (Philadelphia)
• BBVA Compass - 2.00% 5-year CD (parts of AZ, CA, CO, NM, AL, FL, TX)
• Dade County Federal Credit Union - 2.00% 5-year CD (Miami-Dade County, FL)
• Habib American Bank - 2.00% 5-year CD (SoCal, NYC & parts of NJ)
• Department of Commerce FCU - 2.00% 5-year CD (Washington DC)
• Washington Federal - 1.80% ($90K) 1.75% ($1K) 5-year CD (WA, AZ, ID, NV, OR, TX, UT & NM)
• Union Bank - 1.80% 5-year CD (WA & OR)

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.55% ($100K) 2.40% ($20K) 7-year CD (membership restrictions)
• Patelco Credit Union - 2.50% 7-year CD
• Pentagon Federal Credit Union - 2.40% 7-year CD
• Apple Federal Credit Union - 2.40% 10-year CD
• Navy Federal Credit Union - 2.40% ($100K) 2.25% ($20K) 6-year CD (membership restrictions)
• Discover Bank - 2.25% 10-year CD
• Bank of America - 2.10% 10-year CD (MyExpression Banking/Defenders of Wildlife)
• Northrop Grumman FCU - 2.10% ($40K) 1.95% ($2.5K) 7-year CD
• Third Federal - 2.00% 6-year CD
• Discover Bank - 2.00% 7-year CD

• Noteworthy Local Deals

• SACU - 3.55% ($90K) 3.51% ($10K) 10-year CD (San Antonio, TX)
• SACU - 3.05% ($100K) 3.00% ($10K) 7-year (San Antonio, TX)
• Security Service Federal Credit Union - 2.85% ($100K) 2.70% ($500) 7-year CD (parts of Texas, lower rates in CO)
• Air Force FCU - 2.55% ($100K) 2.50% ($2.5K) 7-year CD (limited membership)
• Randolph-Brooks Federal Credit Union - 2.38% ($75K) 2.32% ($20K) 7-year CD (San Antonio & Austin, TX)
• Gateway Metro Federal Credit Union - 2.15% 6-year CD (St. Louis metro)
• Randolph-Brooks Federal Credit Union - 2.07% ($75K) 2.02% ($20K) 6-year CD (San Antonio & Austin, TX)
• Department of Commerce FCU - 2.00% 61-84 month CD (Washington DC)
• Wayne Savings Community Bank - 2.00% 10-year CD (Ohio)

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

Tags: CD rates