If you're looking for competitive CD rates in your local area, you are probably not going to find them at the big banks. You are more likely to find them at community banks or credit unions. That's the case for South Florida. One community bank in South Florida with noteworthy CD rates is Flagler Bank. Its two best CD and IRA CD yields are 1.60% APY for 4 years and 1.45% APY for 3 years. Minimum deposit is $500, and the early withdrawal penalty is equal to 6 month’s interest on the amount withdrawn. These rates are listed in the bank's CD rates page as of 10/30/2012.
Flagler Bank also has a competitive rate for large balances on its tiered-rate money market account. The top tier has a 0.90% APY for a $100K minimum balance. A minimum balance of $2,500 is required to avoid a $15 monthly service fee. This yield is listed in the bank's deposit rates page as of 10/30/2012.
Flagler Bank branches are located in West Palm Beach and North Palm Beach, Florida. The bank just recently closed its branch in Fort Lauderdale.
One potential downside with community banks offering high rates is that it can be a sign of weak financial health. However, if you keep under the FDIC coverage limits, the only risk with a CD is that you'll lose the high rate if the bank should happen to fail (the CD becomes like a callable CD). If you keep under the FDIC limits, there's no risk to principal and accrued interest.
Flagler Bank's financial health is a little weak, but it has improved over the last year. It has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas ratio of 88.69% (poor) based on June 2012 data. In June 2011 the Texas ratio was much worse at 169.83%. Please refer to our financial overview of Flagler Bank for more details. In 2009, the Federal Reserve issued a written agreement against the bank, and that agreement is still in effect as of 10/30/2012. The bank has been a FDIC member since 2000 (FDIC Certificate # 35218).
How These CD Rates Compare
As I mentioned above, you are unlikely to find better rates at large banks. One of the few exceptions is BBVA Compass which is still offering a 2% APY 5-year CD. Even though BBVA Compass has branches in Florida, it requires new customers to live near where they have branches. Most of BBVA Compass branches are in North Florida.
There are usually fewer financial health issues with credit unions, but you may have more trouble qualifying for membership. That's the case with South Florida FCU which currently has a special 1.25% APY 1-year CD, but many in South Florida may not be able to qualify.
One community bank in North Florida is currently offering very competitive CD rates that can be opened online from any state. That's Citizens State Bank, and its 4-year CD yield of 1.77% is the highest that's nationally available for a 4-year term. The highest from an all-access credit union is 1.71% APY at Andrews FCU and at Melrose Credit Union. The highest from an internet bank is 1.61% APY at Nationwide Bank.
These rates are accurate as of 10/30/2012.
Searching for Top CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.