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Survey of the Best CD Rates for October 12, 2012

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Most of the CD rates in my survey held steady this week. I was disappointed to see ING DIRECT cut all of its savings, checking and CD rates this week, but ING DIRECT CD rates have always been too low for them to be included in my survey. For example, ING DIRECT's new 5-year CD yield is only 0.90% which is less than half the yield of the best 5-year CD from an internet bank. This is one downside to Capital One's acquisition of ING DIRECT. Capital One Direct used to offer competitive CD rates. Now that ING DIRECT is the internet bank for Capital One, only low-rate ING DIRECT CDs are available.

The only noteworthy rate cut for CDs available nationwide was at CIT Bank. Its 5-year Jumbo CD yield fell from 1.90% to 1.85%, and its regular CD yield fell from 1.85% to 1.80%. These rates are now even with Nationwide Bank's 5-year Jumbo and regular CD rates. State Bank of India NY takes the top spot for the highest 5-year CD rate that's nationally available from a bank. However, its yield of 1.86% isn't much higher. If you're looking for a new 5-year CD, both CIT Bank and Nationwide Bank would be better choices since they offer an online application and online banking.

Fortunately, CIT Bank's rates on its other CDs remained the same. Both its 1-year and 2-year Achiever CDs are still near the top for the best rates. These top rates combined with the bump-up and add-on features make these Achiever CDs a very good deal for these terms.

CIT Bank's 3-year CD rates also remained the same this week. This 3-year CD doesn't have the bump-up or add-on features, but it does have the best rate that's nationally available from a bank. The Jumbo CD yield is 1.44% and the regular CD yield is 1.42%.

Just below CIT Bank for 3-year CDs, I added NexBank and Northwest Federal Credit Union. Both offer a yield of 1.40%. Northwest FCU requires a $100K deposit for this yield, but an extra 0.25% is possible with a checking relationship.

Local CD Deals

There were only two noteworthy rate cuts for the local deals this week. El Paso Area Teachers FCU cut its CD rates by 5 to 10 basis points. The highest yield is now 2.02% for a 5-year Jumbo CD. This used to be 2.57% APY in early July.

The other noteworthy rate cut was at HAPO Community Credit Union in Washington State. Its 5-year and 4-year CD rates fell by 10 basis points. The yields are now 2.10% for 5 years and 2.00% for 4 years which are still very competitive. However, for those in Seattle, Wings Financial Credit Union is now on top with a a 2.12% APY 5-year CD.

I added 5 credit unions and banks to the survey this week.

The first is SECNY Federal Credit Union which is open to residents in Central New York. Its Jumbo 5-year and 4-year CDs have yields of 2.30% and 2.10% which puts them near the top of my lists.

The second addition this week is Co-op Credit Union which is open to some Wisconsin residents. It's currently offering two CD specials with very competitive rates: 1.25% APY for a 1-year term and 2.00% APY for a 4-year term. Rates are 5 basis points higher for the IRA CDs.

The third addition is Valley Green Bank in Philadelphia which is offering a 1.20% APY 18-month CD. This isn't near the top for my 18-month CD list, but it's higher than what you can get from nationally available 18-month CDs.

Workers Credit Union is the fourth addition this week, and its 18-month CD is near the top of the list. The yield is 1.50%, but there's a catch. It's another special that requires an active checking account to qualify for the rate. The activity in this case is direct deposit. In addition to this 18-month CD, there's a 2.50% APY 6-year CD that also requires an active checking account. Workers Credit Union is available to residents of Massachusetts and Southern New Hampshire.

If you're in Boston and you don't want to worry about the active checking account, you can get a competitive 18-month CD rate at Meetinghouse Bank which is my fifth addition this week. Its yield is 1.20% APY.

Finally, BBVA Compass continues to offer its 2.00% APY 5-year CD. It also has competitive rates for its 15-month and 2-year CDs. I'm pleasantly surprised to see these rates are still available. CD rates are much lower for most all other large banks. These Compass CDs aren't nationally available, but they are available to many people in market areas where Compass has branches (AZ, CA, CO, NM, AL, FL and TX).

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 October 12, 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
2 Comments.
Comment #2 by Duck (anonymous) posted on
Duck
It is a rate lock MM with $2500 minimum sorry. But I just treat it as CD anyway might actually be better as I can take funds out or put in in untill I find better Note to self Pray for something better 75/Campbell

1