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Survey of the Best CD Rates for June 8, 2012

POSTED ON BY

The fears of the European debt crisis went down some this week, and that helped push Treasury yields higher from last week's record lows. There remains a lot of uncertainty in the U.S. and global economy so it's unlikely that we'll see rising Treasury yields become a trend.

For CD rate cuts, there were fewer this week. It appears most credit unions which lowered rates did so on the first of June. However, a few were a little late in their rate reductions. One of those on the nationwide list is Navy Federal Credit Union. On Monday most of its rates fell 10 basis points. Its 7-year Jumbo CD yield is now 2.55%, and its 5-year Jumbo CD yield is now 2.05%.

I added one credit union to the nationwide list this week. DA member me1004 reported on how anyone can qualify for membership into Credit Union of New Jersey. This credit union is offering several competitive long-term CD rates.

I also added EverBank to the list of CDs with terms under 1 year. EverBank is offering new customers a 1.25% rate guaranteed for 6 months on its checking and money market accounts. This is like a 6-month CD in that customers don't have to worry about the rate falling for 6 months. It's better than a CD in that it has all of the liquidity of a checking or money market account. One downside is that it's only for new customers. Another downside is that the intro rate only applies to balances up to $100K for the checking and $50K for the money market account. The portion of the balance over those caps earn the standard rates.

Local CD Deals

Just like Navy Federal, there were a few credit unions on the local list that were late with their June rate cuts. Two which had large rate cuts were Department of Commerce FCU in Washington DC and Austin Telco Credit Union in Texas.

In addition to credit unions, a few banks also cut their rates. Washington Federal which has branches throughout the West had been offering a Jumbo 5-year CD with a yield of 2.05% since March. That yield fell this week to 1.80%.

Finding 2% CD rates continues to become more difficult. However, you still can find 2% 5-year CDs. I added 3 new institutions to the local list this week with 2% 5-year CDs. A reader notified me of Habib American Bank which is offering a 2% APY 5-year CD at its branches in Los Angeles, New York City and in parts of New Jersey. I also added American Eagle Bank of Chicago which has a 2% APY 5-year CD (2.10% APY for a Jumbo). Finally, I added Dade County Federal Credit Union which increased its 5-year CD yield this week from 1.90% to 2.00%. This credit union is available to all residents of Miami-Dade County in South Florida.

The largest bank that's offering a 2% APY 5-year CD is BBVA Compass which has hundreds of branches in several states. I'm glad to see Compass has kept this rate into June. I'll be surprised if it lasts into July.

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 8, 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.

Edit 6/9/12: removed "w/relationship" for the Credit Union of NJ CDs. A $100K deposit in the CD will satisfy the Platinum relationship status.


  Tags: CD rates

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Comments
2 Comments.


Comment #2 by Robert (anonymous) posted on
Robert
I was told yesterday by an Ally CSR that the Ally CD renewal bonus (0.25%) has been extended to Sept 30.  But I have yet to see a CD maturity notice for any of my CD's in that time range that verify the bonus.  Has anyone heard or seen anything official from Ally?

1
Comment #3 by Robert (anonymous) posted on
Robert
Follow-on to comment #2: I finally got my official CD Maturity notice today which confirms that I've been officially offered the 0.25% renewal loyalty reward.  This was on a "small" CD of only $100, so it appears to be independent of CD size.

1