Survey of the Best CD Rates for December 29, 2012

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

• 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)
• Fort Knox Federal Credit Union - 1.00% 6-month CD (KY, TN, IN)
• 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)
• Mansfield Bank - 1.20% 14-month CD (Massachusetts)
• Fort Knox Federal Credit Union - 1.20% 14-month CD (KY, TN, IN)
• 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 - 1.06% 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)
• Fort Knox Federal Credit Union - 1.50% 23-month CD (KY, TN, IN)
• Generations Federal Credit Union - 1.50% 18-21-month CD ends on 12/31/12(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)
• Monroe Savings Bank, SLA - 2.53% 5-year CD (New Jersey)
• 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)
• Mansfield Bank - 2.00% 8-year CD (Massachusetts)
• 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