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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 September 14, 2012

POSTED ON BY

After the major new action yesterday by the Fed, I was worried that we would see some quick rate cuts by the banks. So far that has not happened. Based on how the Treasury market reacted, rates may not fall at least in the short run. The 30-year and 10-year Treasury yields shot up after the Fed announcement due to concerns that the Fed's aggressive action will lead to high inflation.

There were just a few rate cuts this week in my survey of the top CD rates. Similar to previous weeks, the long-term CDs had the largest rate cuts. For nationally available CDs, Apple Federal Credit Union's 10-year CD rate fell from 2.40% to 2.00% APY. In today's environment, you don't get much premium for going past 5 years. For regular CDs, the highest nationally available CD rate with terms over 5 years is only 2.15% APY for the 7-year term at Navy Federal. Fidelity is still listing a non-callable 10-year brokered CD with a 2.50% rate.

There are still a few all-access credit unions offering 2% 5-year CDs. I found a new one this week. Eli Lilly Federal Credit Union has a special 2% 5-year CD. Anyone can join via an association. I have more details in my CD review.

I now have 4 all-access credit unions with a 2% 5-year CD. The highest 5-year CD yield at a bank continues to be 1.90% 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.

Local CD Deals

The largest rate cuts for the local CDs came at El Paso Area Teachers FCU which slashed its 5-year Jumbo CD rate from 2.42% to 2.07% APY.

I didn't add any new long-term CDs to the local list this week. However, I did add two institutions that are offering good short-term CD deals.

The first is HomeBanc with branches in Central Florida. It has the top 3-month CD rate with a 1.50% APY for a maximum deposit of $75,000. This is a special CD so when the CD matures, you'll have to move your money if you want to maintain a competitive rate.

The second addition is Knoxville TVA Employees Credit Union which has a special 1.60% APY 34-month CD. The credit union is open to residents in several counties in the Knoxville metro area.

I was hoping to add MidFirst Direct. This is a new internet division of MidFirst Bank which has branches in Oklahoma and Arizona. Unlike most internet banks, MidFirst Direct isn't offering its products nationwide. The CDs are only available in 11 states. When I reported on it on Tuesday, it was offering very competitive 12-month and 18-month CD rates of 1.35% APY and 1.40% APY. Those rates didn't last long. They're now only 1.05% APY and 1.10% APY. Since you can get higher rates at nationwide internet banks, I didn't add MidFirst Direct to my list. But I'll keep an eye on the bank in case another good deal pops up.

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 14, 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
12 comments.
Comment #1 by Anonymous posted on
Anonymous
Fortunately, I was able to jump on the MidFirstDirect 18 month 1.39% as soon as you posted it on Tuesday. There must have been many others to do so also since the 1.39 didn't last long. Thanks again Ken.

2
Comment #2 by Truthseeker (anonymous) posted on
Truthseeker
With the recent Fed meeting having produced QE into infinity, it is amazing that people will still blindly open CDs. There are many people perplexed by the decisions of Bernanke & Co. Rates are already so low that lowering them further will not help the real economy. So, why issue QE3?

The reason people are confused is that they believe Bernanke. But, he is NOT telling the truth. Bernanke is a liar and a fraud. QE3 is NOT designed to bring down unemployment or improve the economy. It is primarily designed to transfer wealth from savers to Goldman Sachs, JP Morgan Chase, and the other casino bankers of Wall Street. It is secondarily designed to fund deficit spending by the government. Inducing heavy inflation helps the government pay its bills.

QE is theft, though it is done under "color" of law. It represents an unconstitutional seizure of property. Unfortunately, the covert nature of monetary debasement, as a means of taxation without representation, and transfer of wealth from citizens to banks, is not well understood.

If you don't want to be the continuing victims of a group of unelected Mandarins, stacked with casino bank appointed Trojan horses, you will stop saving in the form of Federal Reserve Notes. I have warned people here about Bernanke's plans, over and over again. He plans to steal the value of your "saved" money. Long term CDs are NOT safe havens. There is nothing wrong with saving, but you must switch to gold, silver and platinum.

Paper money will always devalue to its basic cost of production. It has happened every time the stuff has been issued, even when it is ostensibly backed by gold or silver, as in the Ming dynasty in China. That is because human beings are inherently corrupt and, if they have he opportunity, many will lie, cheat and steal as much as they can. The Federal Reserve is the tool of the NYC casino banks. They are using it to lie, cheat, and steal from savers.

Anyone buying long term CDs is going to be wiped out. So, don't do it. This site is invaluable for the purpose of locating liquid money market and checking accounts that pay the highest levels of interest with the perceived "safety" of FDIC insurance. Use it for that, and forget about trying to find banks that will tie your money up in long term CDs, which are sure to lose you a bundle.

5
Comment #3 by Anonymous posted on
Anonymous
I just confirmed that I received the 1.35% 1 year CD from MidFirst..... happy about a 1.35% CD, very sad.

1
Comment #4 by Anonymous posted on
Anonymous
Btw, thanks Ken.... had to jump on that one fast.

1
Comment #5 by Anonymous posted on
Anonymous
I would like to open a 5-year CD and, in light of QE3, I am trying to figure out if I should do that right away or wait a few weeks.  Any suggestions?

1
Comment #6 by Anonymous posted on
Anonymous
I don't plan on opening any 5 year CDs with a rate at 2% or below.

1
Comment #7 by Anonymous posted on
Anonymous
Haven't any of you read the latest that even after Bernanke's term ends in 2014, it seems they intend on keeping the zero interest rates.  I'm sure glad to have gotten my 5 year CDs even with the low rates.  Seems like we won't be doing better for a long time!

2
Comment #8 by Happy Aussie (anonymous) posted on
Happy Aussie
Feel a degree of sympathy for you guys as it's hard to imagine living with returns quite that low. Here in Aus one can still get 5 yr rates at around 5-5.5%. The major banks are rated at or near the top of world banks and deposits are govt guaranteed. Economy is also doing better than almost anywhere. Hang in there

1
Comment #9 by lou posted on
lou
Happy Aussie, can Americans qualify for those rates if they're willing to assume currency risk? Do any of your banks have branches in the United States? Just wondering.

2
Comment #10 by Happy Aussie (anonymous) posted on
Happy Aussie
Lou, I checked with one of the banks, they have no issue with nationality but a couple of things to consider. The bank will require you to have an account - no biggie as it doesn't have to be with them, just somewhere to put your interest. Australian banks will withold tax unless a TFN (tax file number)is provided. I believe the ATO and IRS have some kind of reciprocal arrangement so that you are not taxed twice but you would need to check that out with the IRS. Check your extended family contacts to see if any are living here - it might be easier.

1
Comment #11 by Anonymous posted on
Anonymous
Happy Aussie,

Sounds very interesting.  Do you know if any of the Australian banks have branches in the USA.  Or possibly a easy way to set up a term deposit?

1
Comment #12 by Happy Aussie (anonymous) posted on
Happy Aussie
Hi Anonymous, CBA have a branch on Lexington Ave NY, some of the others may also. It would be interesting to know what rates they offer over there, they advertise a very low rate for a $US account here but that's because the bank wears the Forex risk. Nice to see you refer to it as a term deposit rather than a CD

2