Survey of the Best CD Rates for January 11, 2013

On Tuesday I looked at the deposit rate trends in 2012, and as you might have expected, there was a steady decline in all rates. One interesting thing to note was that 5-year CD rates had larger declines than 1-year CD rates. That trend appears to be continuing this week as a few banks and credit unions cut their long-term CD rates.

Navy Federal Credit Union was one of these. Its 7-year, 6-year and 5-year CD rates fell from 15 to 11 basis points. The highest yield is now 2.00%, and this requires a 7-year term with a $100K minimum deposit.

Ally Bank also had a rate reduction on its 5-year CD. The yield fell from 1.61% to 1.59% APY. I still include this CD due to Ally Bank's small early withdrawal penalty of 60 days of interest. Barclay's 5-year CD is now a better deal than Ally's 5-year CD if the CD is kept open until at least 18 months. Barclay's 5-year CD still has a 1.70% APY and an early withdrawal penalty of 90 days of interest. When relying on a CD early withdrawal, just be aware of the risks.

Salem Five Direct also reduced its longest-term CD rate. Its 30-month CD yield was cut from 1.50% to 1.40%. Its 18-month CD yield remains at 1.15%.

I did add a few new nationally available CDs to the list. Dime Savings Bank came out with two IRA CD specials: 1.50% APY for 30 months and 2.00% APY for 5 years. These are only available as an IRA CD. It's common for banks and credit unions to offer IRA specials during this time of year when IRA contributions can be made for both the current and past year.

The other two CD additions are for terms between 12 and 18 months. USAlliance Federal Credit Union is offering a special 1.30% APY 15-month CD. An association can be joined to qualify for membership in the credit union. The other new CD is at Northern Bank & Trust Company in MA. It's offering a special 1.25% APY 17-month CD. This can be opened online from any state.

The highest CD rate that's nationally available continues to be at Citizens State Bank which is offering a 5-year CD with a 2.05% APY. This is a small Florida bank, but they are accepting deposits nationwide and the CDs can be opened online. Before January the bank required a $100K minimum deposit to qualify for a 2.00% APY. The minimum for this 2.05% APY is now just $1,000.

Local CD Deals

For CDs that are only available locally, there were a few noteworthy rate cuts this week. Following the trend I described above, most of the rate cuts came from long-term CDs.

BBVA Compass ended its 2% 5-year CD. The yield fell to 1.75% APY for part of its market area. In other areas, the new yield is 1.50%. The 1.75% APY is available in parts of Florida, California and Arizona. For the other market areas (parts of Alabama, Colorado, New Mexico and Texas), the 5-year CD has a 1.50% APY. The 2-year CD still has a 1.25% APY in all areas. For both of these CDs, an extra 10 basis points is available with a CompassLink checking account.

The last 3% CDs ended this week. Both were in Texas. Navy Army Community Credit Union in the Corpus Christi metro area reduced its 30-month CD yield from 3.00% to 2.50%. San Antonio Credit Union (SACU) reduced its 10-year CD yield from 3.00% to 2.80%.

Unless you're lucky and live in one of a handful of areas in the nation, the best CD rate available is only around 2%, and most of these have terms from 5 to 10 years. I found three more of these CDs this week.

Keesler Federal Credit Union in Mississippi has a Jumbo 5-year CD with a 2.00% APY. It's a large credit union, and it has an online application. Also, you can qualify for membership via associations. I didn't classify this as an all-access credit union since all of the associations appear to be tied to Mississippi.

The second addition is a 2.06% APY 7-year CD from Gesa Credit Union. Anyone in Washington State is eligible to join this credit union.

The third addition is a 2.01% APY Jumbo 7-year CD at Amplify Credit Union which is open to those who live in the Austin Texas metro area. If you have at least $100K, this is now a better deal than the 7-year Jumbo CD at Randolph-Brooks Federal Credit Union. Its rate dropped below 2% last year.

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 January 11, 2013

Under 1-Year CD Rates

• EverBank - 1.25% checking/MMA intro 6-month rate ($100K/$50K max) account review
• Ally Bank - 1.06% (1.59% 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 - 0.94% 9-month CD, account review
• Ally Bank - 0.91% 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)
• Veridian Credit Union - 1.00% ($100K) 0.80% ($1K) 7-month CD (several parts of Iowa)
• First Choice Bank - 0.90% ($50K) 0.85% ($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 - 1.32% (1.59% 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)
• Pentagon Federal Credit Union - 1.25% 1-year CD
• 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
• NexBank - 1.05% 1-year CD, account review

• 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 - 1.27% ($100K) 1-year CD (Cincinnati OH metro)
• LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
• Mansfield Bank - 1.20% 14-month CD (Massachusetts)
• Doral Bank NY - 1.15% 1-year CD (NYC)
• Beal Bank - 1.11% 1-year CD (Southeast FL)
• East River Bank - 1.00% 14-month CD (Philly, PA)
• First Choice Bank - 0.95% ($50K) 0.90% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)

18-month CD Rates

• Ally Bank - 1.41% (1.59% 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)
• USAlliance Federal Credit Union - 1.30% 15-month CD
• Northern Bank & Trust Company - 1.25% 17-month CD
• 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

• Gulf Coast Federal Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
• Generations Federal Credit Union - 1.50% 18-21-month CD ends on 1/18/13 (San Antonio, TX)
• TEXAR Federal Credit Union - 1.35% 18-month CD (Northeast TX)
• Veridian Credit Union - 1.30% ($100K) 1.11% ($1K) 15-month CD (several parts of Iowa)
• 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)
• Meetinghouse Bank - 1.20% 18-month CD (Boston, MA)
• Valley Green Bank - 1.20% 18-month CD (Philadelphia, PA)
• Doral Bank NY - 1.20% 18-month CD (NYC)
• First Choice Bank - 1.00% ($50K) 0.95% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)

2-Year CD Rates

• Pentagon Federal Credit Union - 1.60% 2-year CD, account review
• Barclays - 1.49% (1.70% 5-year CD closed after 2 years, see review & risks)
• Ally Bank - 1.46% (1.59% 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

• Noteworthy Local Deals

• TEXAR Federal Credit Union - 1.85% 2-year CD (Northeast TX)
• Gulf Coast Federal Credit Union - 1.85% 2-year CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.55% ($250K) 1.45% ($100K) 1.35% ($1K) 21-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, $100K max (account review)
• Pentagon Federal Credit Union - 1.85% 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)
• Dime Savings Bank - 1.50% 30-month IRA-only CD
• Ally Bank - 1.50% (1.59% 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
• Citizens State Bank - 1.46% ($100K) 1.31% ($1K) 3-year CD, account review
• Melrose Credit Union - 1.46% 3-year CD
• Salem Five Direct - 1.40% 30-month 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 - 2.50% 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)
• Gulf Coast Federal Credit Union - 2.02% 3-year CD (Corpus Christi, TX metro)
• Workers Credit Union - 1.50% 30-month CD w/chk+dd (MA & Southern NH)
• 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)
• Doral Bank NY - 1.55% 3-year CD (NYC)
• LOMTO Federal Credit Union - 1.55% 3-year CD (parts of New York City)
• Sea Comm Federal Credit Union - 1.52% 3-year CD (Northern NY)
• Valley Green Bank - 1.50% 3-year CD (Philadelphia, PA)
• Wings Financial Credit Union - 1.46% 3-year CD (Seattle & Minneapolis Metro areas)

4-Year CD Rates

• Pentagon Federal Credit Union - 1.85% 4-year CD, account review
• Citizens State Bank - 1.77% ($100K) 1.61% ($1K) 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)
• Pen Air Federal Credit Union - 1.55% ($100K) 1.45% ($500) 4-year CD
• Ally Bank - 1.52% (1.59% 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)
• Jefferson Financial Credit Union - 2.00% 4-year CD (parts of Louisiana)
• One Source Federal Credit Union - 1.97% ($50K) 1.87% ($1K) 4-year CD (El Paso, 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)
• Sea Comm Federal Credit Union - 1.70% 4-year CD (Northern NY)
• Doral Bank NY - 1.65% 4-year CD (NYC)
• Wings Financial Credit Union - 1.61% 4-year CD (Seattle & Minneapolis Metro areas)
• Shell Federal Credit Union - 1.60% ($50K) 1.55% ($500) 4-year CD (Houston, TX)

5-Year CD Rates

• Citizens State Bank - 2.05% ($1K) 5-year CD, account review
• 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
• 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
• Dime Savings Bank - 2.00% 5-year IRA-only CD
• Melrose Credit Union - 1.96% 5-year CD
• Green Bank, N.A. - 1.95% 5-year CD
• Pen Air Federal Credit Union - 1.95% ($100K) 1.85% ($500) 5-year CD
• Pentagon Federal Credit Union - 1.90% 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
• Pentagon Federal Credit Union - 1.60% (2.00% 7-year CD closed after 5 years, see review & risks)
• Ally Bank - 1.59% 5-year CD

• Noteworthy Local Deals

• Encompass Credit Union - 2.53% 5-year CD (Central Indiana)
• American Airlines Credit Union - 2.47% 5-yr/1.46% 2.5-yr CD ladder (limited membership)
• 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)
• 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)
• SACU - 2.05% ($90K) 2.00% ($10K) 5-year CD (San Antonio, 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)
• Keesler Federal Credit Union - 2.00% ($100K) 1.90% ($1K) 5-year CD (MS)
• 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)
• Shell Federal Credit Union - 1.95% ($50K) 1.90% ($500) 5-year CD (Houston, TX)
• 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)
• BBVA Compass - 1.85% 5-year CD w/chk, 1.75% w/o chk (parts of AZ, CA & FL) 0.25% lower for CO, NM, AL, TX

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.00% ($100K) 1.90% ($20K) 7-year CD (membership restrictions)
• Discover Bank - 2.00% 10-year CD
• Pentagon Federal Credit Union - 2.00% 7-year CD
• Air Force FCU - 2.00% ($100K) 1.85% ($2.5K) 7-year CD
• Apple Federal Credit Union - 2.00% 10-year CD
• Northrop Grumman FCU - 1.93% ($40K) 1.77% ($2.5K) 7-year CD
• Discover Bank - 1.90% 7-year CD
• Navy Federal Credit Union - 1.90% ($100K) 1.80% ($20K) 6-year CD (membership restrictions)
• E-LOAN - 1.70% 6-year CD
• Dime Savings Bank - 1.70% 7-year CD

• Noteworthy Local Deals

• SACU - 2.80% ($90K) 2.75% ($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)
• Workers Credit Union - 2.50% 6-year CD w/chk+dd (MA & Southern NH)
• SACU - 2.45% ($100K) 2.40% ($10K) 7-year (San Antonio, TX)
• Gesa Credit Union - 2.06% 7-year CD
• 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)
• Amplify Credit Union - 2.01% ($100K) 1.75% ($50K) 7-year CD (Austin, TX)
• Mansfield Bank - 2.00% 8-year CD (Massachusetts)
• Columbia Bank - 2.00% 6-year IRA CD 1.85% 6-year CD (New Jersey)
• 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