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Survey of the Best CD Rates for January 11, 2013

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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

  • 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
6 comments.
Comment #1 by Robert (anonymous) posted on
Robert
I've noticed that the Ally no-penalty CD is currently less than the online savings account rate.  The CD is at 0.91% and the savings is at 0.91%.

2
Comment #2 by Robert (anonymous) posted on
Robert
Correction to the above: The CD is at 0.91% and the savings is at 0.95%.

4
Comment #3 by KenBDG posted on
KenBDG
Yes, you're right. the No Penalty CD rate is lower. The only reason to get this CD (or any short-term CD with a similar rate) is if you think the savings account rate will fall enough to make the CD rate lock worthwhile. As I showed in my review of 2012 rate trends, internet savings account rates held up well last year (except for a few bad apples). So I don't think short-term CDs are worth it in today's environment unless you can get a hot deal like what DCU offered.

3
Comment #4 by Anonymous posted on
Anonymous
TIAA-CREF just lowered their high yield savings account from 1.25% to .99%.  In Febuary they are limiting ACH witdrawls to $5000 a day.

3
Comment #5 by Anonymous posted on
Anonymous
Re: TIAA $5000/day ach withdrawls, can you still 'pull' more than that if you use another bank to ACH pull from TIAA???

1
Comment #6 by Anonymous posted on
Anonymous
I just got the answer to my question above from TIAA.

Yes, no limit on $ amount of ACH pull out or check writing.

Only new limit is $5000/day ACH push out as of February 9.

2