Survey of the Best CD Rates for December 22, 2012

Three internet banks cut their CD rates this week. AloStar Bank of Commerce reduced its 2-year CD yield from 1.26% to 1.01%, and it reduced its 1-year CD yield from 1.06% to 0.85%. These large rate cuts took AloStar far below the rate leaders. Consequently, I removed AloStar from my list. AloStar's 1-year and 2-year CD rates had been near the top for the last few months. AloStar Bank of Commerce used to be Nexity Bank. In April 2011, Nexity Bank failed, and the FDIC arranged for the newly-chartered bank, AloStar Bank of Commerce, to assume all of Nexity's deposits.

The other internet bank that reduced its CD rates this week is Discover Bank. Its 3-year, 4-year and 5-year CD rates fell by 5 bps. These new rates remain fairly competitive, so I've kept these Discover CDs on my list. Fortunately, Discover Bank's 7-year and 10-year CD rates remain the same. Discover continues to be the only internet bank with a 2.00% APY CD (but it has a very long term of 10 years).

The third internet bank with rate cuts is the new internet bank, Barclays. Its 2-year CD yield went down from 1.25% to 1.10%. Its other CD rates remained the same, including its competitive 5-year CD which has a 1.70% APY. If you are considering Ally Bank for its 5-year CDs which have a small early withdrawal penalty of 60 days of interest, you might also want to consider this Barclays 5-year CD. The rate is 9 bps higher, and the early withdrawal penalty is also small, 90 days of interest.

The best nationally available CD deals continue to be from all-access credit unions.

The best short-term CD deal is still at Digital Federal Credit Union (DCU) which has a special 8-month CD with a 1.50% APY. This is far better than any short-term CD rate that's available from internet banks. Ally Bank's 11-month No Penalty CD with a 0.95% APY is the best internet bank deal, but it doesn't come close to this special DCU CD.

The best mid-term CD deals are still at Pentagon Federal Credit Union (PenFed) with a 1.50% APY 2-year CD and a 1.75% APY 3-year CD. The only internet bank that comes close to these is Salem Five Direct which still has a 1.50% APY 30-month CD.

The best long-term CD deal continues to be at Pen Air Federal Credit Union which has a Jumbo 5-year CD with a 2.20% APY and a regular 5-year CD with a 2.00% APY. A few other all-access credit unions also offer CDs with a 2.00% APY.

Local CD Deals

For CDs that are only available locally, a few institutions ended their CD specials. One is Superior Choice Credit Union in Wisconsin which is no longer listing its 18-month 1.25% CD special. Another one is Community Trust Bank which has branches in Texas, Louisiana and Mississippi. It's no longer listing its special 1.40% 13-month CD special.

On the plus side, LOMTO Federal Credit Union in New York City raised its 1-year CD yield from 1.00% to 1.20%. Its 2-year and 3-year CD rates also went up. Not everyone in NYC may be able to qualify for membership. NYC residents unable to qualify can get CD deals almost this good at Doral Bank NY.

I added three new institutions to my local CD list. Entertainment Credit Union is offering a special 1.00% APY 4-month CD. People from the Los Angeles metro area can qualify for this deal. This rate may sound low, but it's rare to find rates near 1.00% for CD terms under 6 months.

Another new institution is East River Bank in Philadelphia. It has a special 14-month CD with a 1.25% APY. If you compare this with 12-month CDs, the rate is very competitive.

The third addition is American United Family of Credit Unions which is open to residents of Salt Lake County Utah. It's offering a 2.15% APY 5-year Jumbo CD. I replaced HeritageWest Credit Union's 2.02% APY 5-year CD with this one since both credit unions serve a similar area of Utah. One advantage of HeritageWest is that they offer this 2.02% APY for terms from 60 months to 72 months. So I added this to my local 6-plus-year CD list which no longer includes many CDs. Even for the very long terms, it's hard to find CD rates over 2.00%.

Finally, BBVA Compass continues to offer its CD specials which includes a 2.00% APY 5-year CD and a 1.25% APY 2-year CD. An extra 10 bps is added to the CD rates if the customer opens a CompassLink Checking. This offer has been available at BBVA Compass for most of 2012. It's rare to find a large bank that has offered such a good deal for this long. Unfortunately, it's not nationally available. BBVA Compass requires new customers to reside near one of the bank's branches. These are located in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas.

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 were recently highlighted by the deposit agreement change at Ally. The risks have also been seen at credit unions which have raised the early withdrawal penalties on existing CDs. I have more details in this 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 December 22, 2012

Under 1-Year CD Rates

• Digital Federal Credit Union - 1.50% 8-month CD
• EverBank - 1.25% checking/MMA intro 6-month rate ($100K/$50K max) account review
• Ally Bank - 1.07% (1.61% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.00% 6-month CD w/active chk
• Xceed Financial Credit Union - 1.00% 9-month CD
• Doral Bank Direct - 0.95% 9-month CD, account review
• Ally Bank - 0.95% 11-month No-Penalty CD, see account review
• Doral Bank Direct - 0.90% 6-month CD, account review
• Barclays - 0.85% (1.70% 5-year CD closed after 6 months, see review & risks)
• Colorado Federal Savings Bank - 0.80% 6-month CD

• Noteworthy Local Deals

• HomeBanc N.A. - 1.50% ($75K max) 3-month CD (Central Florida)
• Gulf Coast Federal Credit Union - 1.10% 6-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.05% ($250K) 0.95% ($100K) 0.85% ($1K) 7-month CD (several parts of Iowa)
• Entertainment Credit Union - 1.00% 4-month CD (Los Angeles metro)
• Veridian Credit Union - 1.00% ($100K) 0.80% ($1K) 7-month CD (several parts of Iowa)
• First Choice Bank - 0.95% ($50K) 0.90% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
• LOMTO Federal Credit Union - 0.85% 6-month CD (parts of New York City)

1-Year CD Rates

• Ally Bank - 1.34% (1.61% 5-year CD closed after 1 year, see review & risks)
• Barclays - 1.27% (1.70% 5-year CD closed after 1 year, see review & risks)
• State Bank of India - Chicago - 1.16% ($95K) 1.05% ($2.5K) 1-year CD
• Connexus Credit Union - 1.10% 1-year CD w/active chk
• CIT Bank - 1.05% ($25K min) add-on & bump-up 1-year CD
• ableBanking - 1.05% 1-year CD

• Noteworthy Local Deals

• City County Credit Union - 1.51% 1-year IRA-only CD (many FL counties)
• Gulf Coast Federal Credit Union - 1.50% 12-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.35% ($250K) 1.25% ($100K) 1.15% ($1K) 13-month CD (several parts of Iowa)
• General Electric Credit Union - 1.26% ($100K) 1-year CD (Cincinnati OH metro)
• East River Bank - 1.25% 14-month CD (Philly, PA)
• LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
• Doral Bank NY - 1.15% 1-year CD (NYC)
• Beal Bank - 1.11% 1-year CD (Southeast FL)
• First Choice Bank - 1.00% ($50K) 0.95% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)
• BBVA Compass - 1.00% 15-month CD (parts of AZ, CA, CO, NM, AL, FL, TX)

18-month CD Rates

• Ally Bank - 1.43% (1.61% 5-year CD closed after 18 months, see review & risks)
• Barclays - 1.41% (1.70% 5-year CD closed after 18 months, see review & risks)
• Salem Five Direct - 1.15% 18-month CD
• NexBank - 1.15% 18-month CD, account review
• MetLife Bank - 1.12% 18-month CD
• Doral Bank Direct - 1.07% 18-month CD, account review

• Noteworthy Local Deals

• TEXAR Federal Credit Union - 2.10% 18-month CD (Northeast TX)
• Gulf Coast Federal Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
• Generations Federal Credit Union - 1.50% 18-21-month CD special (San Antonio, TX)
• University of Iowa Community Credit Union - 1.45% ($250K) 1.35% ($100K) 1.25% ($1K) 16-month CD special (several parts of Iowa)
• Veridian Credit Union - 1.30% ($100K) 1.11% ($1K) 15-month CD (several parts of Iowa)
• East Boston Savings Bank - 1.27% 19-month CD special (2 branches in Boston Metro)
• Libertad Bank - 1.25% 18-month CD (Texas)
• El Paso Area Teachers FCU - 1.21% ($50K) 1.11% ($500) 18-month CD (El Paso, TX)
• Jeanne D'Arc Credit Union - 1.20% 18-month CD (parts of MA & NH)
• Meetinghouse Bank - 1.20% 18-month CD (Boston, MA)
• Valley Green Bank - 1.20% 18-month CD (Philadelphia, PA)
• Shell Federal Credit Union - 1.20% ($50K) 1.15% ($500) 18-month CD (Houston, TX)
• Doral Bank NY - 1.20% 18-month CD (NYC)
• First Choice Bank - 1.05% ($50K) 1.00% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)

2-Year CD Rates

• Pentagon Federal Credit Union - 1.50% 2-year CD, account review
• Barclays - 1.49% (1.70% 5-year CD closed after 2 years, see review & risks)
• Ally Bank - 1.47% (1.61% 5-year CD closed after 2 years, see review & risks)
• Citizens State Bank - 1.36% ($100K) 1.21% ($1K) 2-year CD, account review
• Sandia Laboratory FCU - 1.36% ($200K) 1.26% ($100K) 1.16% ($50K) 1.06% ($1K) 2-year CD
• NexBank - 1.30% 2-year CD, account review
• Connexus Credit Union - 1.30% 2-year CD w/active chk
• Northwest Federal Credit Union - 1.26% ($100K) 1.15% ($25K) 2-year CD (+0.25% w/relationship)
• CIT Bank - 1.20% ($25K min) add-on & bump-up 2-year CD
• ableBanking - 1.19% 2-year CD

• Noteworthy Local Deals

• Gulf Coast Federal Credit Union - 1.85% 2-year CD (Corpus Christi, TX metro)
• Workers Credit Union - 1.50% 2-year CD w/chk+dd (MA & Southern NH)
• University of Iowa Community Credit Union - 1.50% ($250K) 1.40% ($100K) 1.30% ($1K) 25-month CD (several parts of Iowa)
• Veridian Credit Union - 1.45% ($100K) 1.25% ($1K) 25-month CD (several parts of Iowa)
• Doral Bank NY - 1.40% 2-year CD (NYC)
• LOMTO Federal Credit Union - 1.40% 2-year CD (parts of New York City)
• BBVA Compass - 1.35% 2-year CD w/chk, 1.25% w/o chk (parts of AZ, CA, CO, NM, AL, FL, TX)
• BrightStar Credit Union - 1.25% 23-month CD (+0.25% w/chk relationship) (parts of Southeast FL)

3-Year CD Rates

• Wilshire State Bank - 2.28% 3-year installment savings account w/auto xfers (account review)
• Pentagon Federal Credit Union - 1.75% 3-year CD, account review
• Connexus Credit Union - 1.75% 3-year CD w/active chk
• Barclays - 1.56% (1.70% 5-year CD closed after 3 years, see review & risks)
• Ally Bank - 1.52% (1.61% 5-year CD closed after 3 years, see review & risks)
• State Bank of India - Chicago - 1.51% ($95K) 1.41% ($2.5K) 3-year CD
• Salem Five Direct - 1.50% 30-month CD
• Citizens State Bank - 1.50% ($5K) 3-year Raise Your Rate CD, account review
• Melrose Credit Union - 1.46% 3-year CD
• NexBank - 1.40% 3-year CD, account review
• Northwest Federal Credit Union - 1.40% ($100K) 1.30% ($25K) 3-year CD (+0.25% w/relationship)
• CIT Bank - 1.35% ($100K) 1.30% ($1K) 3-year CD
• Pentagon Federal Credit Union - 1.33% (2.00% 7-year CD closed after 3 years, see review & risks)
• Discover Bank - 1.30% 3-year CD

• Noteworthy Local Deals

• NavyArmy Community Credit Union - 3.00% 30-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 2.20% ($250K) 2.10% ($100K) 2.00% ($1K) 37-month CD (several parts of Iowa)
• Encompass Credit Union - 2.02% 3-year CD (Central Indiana)
• Sea Comm Federal Credit Union - 2.02% 3-year CD (Northern NY)
• Gulf Coast Federal Credit Union - 2.02% 3-year CD (Corpus Christi, TX metro)
• One Source Federal Credit Union - 1.86% ($50K) 1.76% ($1K) 3-year CD (El Paso, TX)
• Veridian Credit Union - 1.80% ($100K) 1.60% ($1K) 39-month CD (several parts of Iowa)
• Dover Federal Credit Union - 1.75% 3-year CD (Delaware)
• Doral Bank NY - 1.55% 3-year CD (NYC)
• LOMTO Federal Credit Union - 1.55% 3-year CD (parts of New York City)
• Wings Financial Credit Union - 1.46% 3-year CD (Seattle & Minneapolis Metro areas)

4-Year CD Rates

• Pen Air Federal Credit Union - 1.80% ($100K) 1.60% ($500) 4-year CD
• Citizens State Bank - 1.77% ($100K) 1.61% ($1K) 4-year CD, account review
• Pentagon Federal Credit Union - 1.75% 4-year CD, account review
• Andrews Federal Credit Union - 1.71% 4-year CD
• Melrose Credit Union - 1.71% 4-year CD
• Green Bank, N.A. - 1.70% 4-year CD
• Communitywide Federal Credit Union - 1.70% 49-month special CD
• Alliant Credit Union - 1.65% 4-year CD
• Nationwide Bank - 1.61% ($100K) 1.56% ($500) 4-year CD
• Barclays - 1.59% (1.70% 5-year CD closed after 4 years, see review & risks)
• Ally Bank - 1.54% (1.61% 5-year CD closed after 4 years, see review & risks)
• Discover Bank - 1.50% 4-year CD
• Pentagon Federal Credit Union - 1.50% (2.00% 7-year CD closed after 4 years, see review & risks)
• Barclays - 1.45% 4-year CD
• Ally Bank - 1.35% Raise-Your-Rate 4-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 49-month CD (several parts of Iowa)
• Sea Comm Federal Credit Union - 2.25% 4-year CD (Northern NY)
• Jefferson Financial Credit Union - 2.00% 4-year CD (parts of Louisiana)
• Dover Federal Credit Union - 2.00% 4-year CD (Delaware)
• One Source Federal Credit Union - 1.97% ($50K) 1.87% ($1K) 4-year CD (El Paso, TX)
• Shell Federal Credit Union - 1.90% ($50K) 1.85% ($500) 4-year CD (Houston, TX)
• HAPO Community Credit Union - 1.85% 4-year CD (all of Washington State)
• LOMTO Federal Credit Union - 1.75% 4-year CD (parts of New York City)
• Empower Federal Credit Union - 1.75% ($100K) 1.60% ($10K) 4-year CD, extra 0.25% for seniors w/dd (western NY)
• Doral Bank NY - 1.65% 4-year CD (NYC)
• Wings Financial Credit Union - 1.61% 4-year CD (Seattle & Minneapolis Metro areas)

5-Year CD Rates

• Pen Air Federal Credit Union - 2.20% ($100K) 2.00% ($500) 5-year CD
• State Department Federal Credit Union - 2.02% 5-year IRA CD, 1.91% 5-year CD
• Stanford Federal Credit Union - 2.02% ($100K) 5-year CD, requires chk w/dd, account review
• Citizens State Bank - 2.00% ($100K) 1.85% ($1K) 5-year CD, account review
• Mountain America Credit Union - 2.00% 5-year CD, account review
• Connexus Credit Union - 2.00% 5-year CD w/active chk
• Communitywide Federal Credit Union - 2.00% 5-year CD
• Melrose Credit Union - 1.96% 5-year CD
• Green Bank, N.A. - 1.95% 5-year CD
• CIT Bank - 1.85% ($100K) 1.80% ($1K) 5-year CD
• Nationwide Bank - 1.85% ($100K) 1.80% ($500) 5-year CD
• Barclays - 1.70% 5-year CD
• Discover Bank - 1.65% 5-year CD
• Ally Bank - 1.61% 5-year CD
• Pentagon Federal Credit Union - 1.60% (2.00% 7-year CD closed after 5 years, see review & risks)

• Noteworthy Local Deals

• American Airlines Credit Union - 3.09% 5-yr/1.81% 2.5-yr CD ladder (limited membership)
• Encompass Credit Union - 2.53% 5-year CD (Central Indiana)
• Sea Comm Federal Credit Union - 2.49% 5-year CD (Northern NY)
• One Source Federal Credit Union - 2.37% ($50K) 2.27% ($1K) 5-year CD (El Paso, TX)
• General Electric Credit Union - 2.33% 5-year CD (Cincinnati OH metro)
• Security Service Federal Credit Union - 2.30% ($100K) 2.15% ($500) 5-year CD (parts of Texas, lower rates in CO and UT)
• Jefferson Financial Credit Union - 2.25% 5-year CD (parts of Louisiana)
• Dover Federal Credit Union - 2.25% 5-year CD (Delaware)
• SACU - 2.25% ($90K) 2.20% ($10K) 5-year CD (San Antonio, TX)
• Shell Federal Credit Union - 2.20% ($50K) 2.15% ($500) 5-year CD (Houston, TX)
• Ukrainian Selfreliance FCU - 2.20% ($75K) 2.15% ($500) 5-year CD (Philadelphia, PA)
• American United Family of Credit Unions - 2.15% ($75K) 2.10% ($500) 5-year CD (parts of Utah)
• Idaho Central Credit Union - 2.15% 5-year bump-up CD (Idaho)
• BBVA Compass - 2.10% 5-year CD w/chk, 2.00% w/o chk (parts of AZ, CA, CO, NM, AL, FL, TX)
• Denver Community Credit Union - 2.10% ($50K) 1.85% ($100) 5-year CD (Denver County)
• Superior Choice Credit Union - 2.08% 58-month CD special (parts of WI and MN)
• Texell Credit Union - 2.05% 5-year CD (Central Texas)
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 5-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• HEW Federal Credit Union - 2.02% 5-year CD (DC metro area)
• LOMTO Federal Credit Union - 2.00% 5-year CD (parts of New York City)
• American Eagle Bank of Chicago - 2.00% (relationship checking required) 5-year CD (Chicago, IL)
• Police and Fire Federal Credit Union - 2.00% 5-year CD (Pennsylvania)
• HAPO Community Credit Union - 1.95% 5-year CD (all of Washington State)
• Miami Postal Service Credit Union - 1.91% 5-year CD (Southeast FL)
• Freedom Credit Union - 1.90% add-on 5-year CD (Philadelphia)
• Wings Financial Credit Union - 1.86% 5-year CD (Seattle & Minneapolis Metro areas)

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.15% ($100K) 2.05% ($20K) 7-year CD (membership restrictions)
• Discover Bank - 2.00% 10-year CD
• Pentagon Federal Credit Union - 2.00% 7-year CD
• Navy Federal Credit Union - 2.00% ($100K) 1.90% ($20K) 6-year CD (membership restrictions)
• Air Force FCU - 2.00% ($100K) 1.85% ($2.5K) 7-year CD
• Apple Federal Credit Union - 2.00% 10-year CD
• Discover Bank - 1.90% 7-year CD
• Northrop Grumman FCU - 1.91% ($40K) 1.75% ($2.5K) 7-year CD
• E-LOAN - 1.70% 6-year CD
• Dime Savings Bank - 1.70% 7-year CD

• Noteworthy Local Deals

• SACU - 3.25% ($90K) 3.20% ($10K) 10-year CD (San Antonio, TX)
• Security Service Federal Credit Union - 2.85% ($100K) 2.70% ($500) 7-year CD (parts of Texas, lower rates in CO and UT)
• SACU - 2.80% ($100K) 2.75% ($10K) 7-year (San Antonio, TX)
• Workers Credit Union - 2.50% 6-year CD w/chk+dd (MA & Southern NH)
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 7-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• Gateway Metro Federal Credit Union - 2.05% 6-year CD (St. Louis metro)
• HeritageWest Credit Union - 2.02% 6-year CD (parts of Utah)
• Randolph-Brooks Federal Credit Union - 1.92% ($75K) 1.92% ($1K) 7-year CD (San Antonio & Austin, TX)
• Randolph-Brooks Federal Credit Union - 1.76% ($75K) 1.76% ($1K) 6-year CD (San Antonio & Austin, TX)

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

Tags: CD rates