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Survey of the Best CD Rates for December 29, 2012

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This holiday week was quiet for CD rate changes. The only noteworthy change was at Digital Federal Credit Union which ended its 1.50% 8-month CD special. For anyone looking for short-term CDs, I hope you were able to take advantage of that one. If you missed it, you may have to settle for a sub-1% rate. One of the best short-term CD deals continues to be at Ally Bank which has a 0.95% APY 11-month No Penalty CD. The no-penalty feature allows it to have any term from 7 days to 11 months. The rate is currently the same as Ally's savings account rate. So the only advantage of this CD (or any short-term CD with a similar rate) is if you think savings account rates will fall next year. Last year at this time, Ally Bank's savings account rate was 0.89% and Ally's No Penalty CD rate was 0.91%. So you would have been better off with the savings account.

The best nationally available CD deals continue to be from all-access credit unions. However, credit unions often change rates at the start of the month. So these may not last much longer.

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, this was also a quiet week. However, there are signs we will see some rate cuts and specials ending next week. One example is Generations Federal Credit Union in San Antonio which is offering a special CD with a 1.50% APY for terms of 18 to 21 months. They added a note in the promo page informing members that the special will be ending on the 31st.

I added three institutions to the list. One is the infamous institution Fort Knox Federal Credit Union. It's offering three CD specials: 1.00% APY for 6 months, 1.20% APY for 14 months and 1.50% APY for 23 months. Even though anyone can join the credit union, they are limiting these specials to residents of KY, TN and IN. As I described in my post, you may not want to take advantage of these CDs even if you qualify.

The second new institution is Mansfield Bank in Massachusetts. It's also offering a 14-month CD special with a 1.20% APY. It also has a competitive long-term CD rate: 2.00% APY for 8 years.

The third new institution is Monroe Savings Bank, SLA in New Jersey which has a 5-year CD that ties the current 5-year rate leader with a 2.53% APY. It's a small bank, and the look of its website doesn't provide much confidence. Nevertheless, it's an FDIC-insured bank, and many in New Jersey who can drive to the bank's branch can take advantage of this deal. So I'm including it on the list.

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. I hope it will continue into 2013, but I wouldn't be surprised if it ends. This 2.00% yield is very high compared to what other large banks are offering. For example, Wells Fargo's special 58-month CD pays only 0.55%, and US Bank's special 59-month CD pays only 1.25%. Both of these rates are based on a Southern California zip code. 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 29, 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 #1 by Anonymous posted on
Anonymous
Pen Air FCU has lowered their CD rates effective January 2nd.

1
Comment #2 by Anonymous posted on
Anonymous
a good source of getting rates. a good isea would be to run periodic surveys for your information sources to see what more you can add

1