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Survey of the Best CD Rates for September 1, 2012

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Since September is starting on a Saturday, I decided to delay my weekly CD rate survey by one day. Some credit unions often change their rates at the start of the month. We may not see all of the changes until Tuesday after the Labor Day holiday since new-month rates may not be updated until the first business day of the month.

So far there haven't been a bunch of rate cuts. The only all-access credit union which cut its rate as of this morning is US Senate Federal Credit Union. Its top 5-year CD rate has fallen from 2.12% APY to 1.71% APY.

US Senate FCU had been offering the highest 5-year CD rate that's nationally available. The new highest is now at Navy Federal Credit Union with a Jumbo 5-year CD yield of 2.05%. However, Navy Federal isn't available to all. To join you must have some connection to the military.

If you exclude Navy Federal, the highest 5-year CD rate at a truly all-access institution is 2.00% APY at Mountain Credit Union, Pen Air Credit Union, and Connexus Credit Union. All three of these credit unions allow anyone to join via an association.

Credit unions used to offer a sizable CD rate advantages over internet banks. That spread has gone down. The highest 5-year CD rate that's nationally available at a bank is 1.90% APY at CIT Bank.

You can still get a 2.00% APY 5-year CD at BBVA Compass, but this isn't nationally available. You have to live in the market areas where Compass has branches. These are in AZ, CA, CO, NM, AL, FL and TX.

There were also some rate cuts at Ally Bank and Barclays. Their 5-year and 4-year CD rates went down this week. These CDs aren't always the highest rates, but both of these banks have small early withdrawal penalties (60 days of interest at Ally and 3 months at Barclays). Ally Bank's 5-year CD with a 1.72% APY now has a lead over the 1.70% APY 5-year CD at Barclays.

Local CD Deals

The local CD rates in this survey also haven't changed much, at least as of Saturday morning.

There was another rate cut of the nation's highest CD rate. San Antonio Credit Union (SACU) reduced its 10-year CD yield from 3.40% to 3.35% this week. Its 7-year CD rate also fell by 5 basis points.

Like Texas, Iowa also has several credit unions offering top CD rates. One of the best is University of Iowa Community Credit Union which is open to residents of many eastern Iowa counties. Unfortunately, its special CD rates fell by 25 basis points. Its standard CD rates remain very competitive. The highest is 2.15% APY for terms from 49 to 60 months. Members can get an extra 10 basis points for a $100K deposit and an extra 20 basis points for a $250K deposit.

We haven't seen many good CD deals in Florida, but there had been one good short-term CD deal in South Florida at Miami Postal Service Credit Union which had been offering a 9-month CD with a 1.00% APY for a $25K minimum deposit. That used to be 1.26% in July. The new rate is now only 0.75%. Consequently, I removed that CD from the under-1-year category. I did add one Miami short-term CD deal this week. Biscayne Bank is offering a competitive 1.10% APY on its 1-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 September 1, 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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