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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Survey of the Best CD Rates for March 22, 2013

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There were quite a few rate cuts this week. Perhaps this week's Fed meeting contributed to these cuts. There were no policy changes in the meeting, but the meeting did reinforced the fact that rate hikes are very unlikely for the next two years.

The internet banks on my list that had rate cuts include Ally, Discover, Salem Five Direct, Nationwide and E-LOAN.

Ally Bank's 11-month No Penalty CD rate fell from 0.85% to 0.81%. This is rate is now lower than Ally's savings account rate.

Salem Five Direct cut its eCD special rates by 10 bps. Its 18-month CD now has a 1.05% APY. Its 30-month CD has been changed to a 3-year CD. Its yield is now 1.30%.

Discover Bank, Nationwide Bank and E-LOAN cut the rates on some of its long-term CDs. However, Discover Bank's 7-year and 10-year CD rates remained the same (1.90% APY and 2.00% APY). These are not nearly as good of a deal as they used to be due to Discover's larger early withdrawal penalties.

The 2.02% 5-year CD at The National Republic Bank of Chicago didn't last long. It cut its 3-year and 5-year CD rates by 25 bps. Its 5-year CD yield is now 1.76%. This isn't an internet bank, but it does have an online application that allows anyone in the nation to apply. It's a small bank, and it must have reached its deposit targets fast.

The only remaining 5-year CD with a 2.00% APY and without checking requirements is at Mountain America Credit Union. I have more details about this CD and how to join the credit union in this blog post. DA member Duck provided a review of his experience joining the credit union and opening a CD in this forum thread (hat tip).

The best 5-year CD rate at a bank is now a tie between Barclays and Green Bank, N.A. Both offer have a 1.85% APY. Barclays used to be a very good deal due to its small early withdrawal penalty. That changed last Saturday when Barclays increased the early withdrawal penalty for terms over 2 years from 90 days to 180 days of interest. Due to this change, Ally Bank's 5-year CD takes back the top spot when it's closed within 2 years. After 2 years, Barclays 5-year CD keeps the top spot. Ally Bank becomes even a better deal if you are able to get the loyalty rewards rate bonus.

Local CD Deals

There were a handful of rate cuts for the local deals. Some of the credit unions with rate cuts include University of Iowa Community Credit Union, HAPO Community Credit Union in Washington State and Empower FCU in Northwest New York.

On the plus side, there was one rate hike. Randolph-Brooks FCU in Central Texas raised its 6-year and 7-year CD rates by 10 bps. That puts its 7-year CD yield just over 2%.

I added two new local deals this week. First, Hudson Valley FCU in New York is offering a good short-term CD deal with a 1.30% APY for a 13-month term.

I also added Quabbin Online Credit Union to the list. It's offering a special 6-month CD with a 1.25% APY. Membership is open to residents in parts of Massachusetts.

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 March 22, 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
12 Comments.
Comment #1 by Anonymous posted on
Anonymous
Man Ken,  why are you not giving good deals  now. You used to give 6% deals on CDs. Now not. Why not

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Comment #2 by Anonymous posted on
Anonymous
DUH ?

7
Comment #3 by KenBDG posted on
KenBDG
Those were the good old days when 6% deals were common. For fun I took a look at my old weekly summary from March 2007, and here were some of the old deals: 5.45% savings account, 5.71% 6-month CD, 6.00% 15-month CD and 5.75% 5-year CD.

I wonder how many people back then chose the savings accounts and short-term CDs instead of the long-term CDs. The rate spreads definitely didn't make those long-term CDs attractive.

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Comment #4 by Anonymous posted on
Anonymous
A painful trip down memory lane. :-)

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Comment #5 by Duck posted on
Duck
To answer the first guy Ken does maybe not 6% but better than just walkin into a WellsFargo you just got to look and be quick in some cases.

 BTW I cashed in my last Pen 6% back before this winter which went to a 2.76% 7yr then this Jan a special 3yr from Pen payin 3.75 it was 3.5 with renewal bonus .25% which came from a 6.25% that matured remember those things guys renewal specials from Pen well it went to thier 1.85% 3yr :(. Just cashed in another 5.75% and replaced it with a Mountain 5yr at 2%.

I have 1 more cd paying over 5% which sadly comes due end of 15 this will hurt the most unless rates go up as the next is a 3yr Soverign at 2.53 next yr and that Senate 5yr at 3.23 back in Sept 11 that some of us got in on before it dropped like a rock but not before a Firstmark payin 2.75 which both come in 16 hopefully well see something better by then. 

  BTW In my opinion that Senate one was the find of the yr for the end of 2011 and all of 2012 that was open to everybody that was fast enough could do.

 I know I dont spend enough time researching here there and everywhere but whatcha gonna do. But you cant hawk on Ken he doesnt set em' he reports them and what a mighty fine job he does.

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Comment #6 by scottj posted on
scottj
Thanks to this site I also got in on the Senate CD and the 5% 10 year Penfed I did is looking very good now. In the last month I have lost two 3% CDs but luckily still also have a couple 3.5% ones that go for another 2 years. Overall so far I have done ok through this mess in much part thanks to this site, lets just hope rates look beter in a couple years

7
Comment #7 by Brett (anonymous) posted on
Brett
Just bought some Israeli Jubilee Bonds, pays 3.77%, interest paid twice a year.  My finl. planner recommended, he says he has owned them for 8 years, interest pd. like clockwork.  Not FDIC, but seemed worth the risk to almost double my return vs. CD's.

1
Comment #8 by Wanderer (anonymous) posted on
Wanderer
Why lock money away for 5-7 years in return for these kind of rates? The rates would be 5-6% if the Fed were not buying bonds and doing QE, creating financial repression. They are being reduced by Fed-sponsored activities. Better to stay liquid or put money into mattresses than accept these rates.

Think about what is happening in Cyprus now. Is it really any different than what the US government is doing to us? They are stealing your money. Depositors are being raped to keep casino banking managements in power. I admit that the US mugs its citizens with more sophistication. The sophisticated methods used make it difficult for most people to understand what is being done to them.

But, is stealing a 3-4% rate difference by using QE really much different than levying an overt tax on savings? It is really the same thing. It is essentially the same thing. It is one thing to take losses because a bank collapses and all the managers lose their jobs and are bankrupted along with it. But, our governments are stealing from us, like in Cyprus, for the purpose of keeping bank managements flush with cash.

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Comment #9 by Anonymous posted on
Anonymous
Some of you people sound like a broken record.  Get over it already.  Nothing is going to change in the foreseeable future.  But life goes on just the same.  Enjoy it while you can.

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Comment #10 by lou posted on
lou
Brett, I think you are referring to the 10-year israeli bond. If you need to redeem the bonds before maturity is there a way to do it without getting killed? I don't think there is an active market for these bonds nor will Israel buy back the bonds before maturity. Unfortunately, you may be assuming significant interest rate risk with these bonds.

6
Comment #11 by Anonymous posted on
Anonymous
Wanderer, you are correct.  The FED is stealing from prudent non speculating savers, retirees and widows.  They are doing this to bail out their banks who speculated and lost in the real estate bubble.   It is best to just stay short term in CDs for the next couple of years because a bond and stock market crash will come again.  History has shown that Ultra easy FED rates always produce a crash after about three to four years.  We are in the forth year and a crash could happen at anytime.  

2
Comment #12 by Brett (anonymous) posted on
Brett
Lou-

Israeli Bonds, so I have been told, have never defaulted.  I could have opened a 10-year CD for 2.00%, but I thought it wiser to do this, at almost twice the rate.  Even if CD's go back up to 4% or 5% (doubtful), I will have had this rate for a while before they do so, instead of 2.00%.  It may take years, maybe many, for CD's to go over the rate on these bonds.

 I am not sure if there is an active market to redeem them prior to maturity.  I am looking at it as a 10-year CD.  I have never closed a CD before maturity, so I don't plan on cashing these in early either.  Their website has lots of information, you may want to look at it.  Hope this helps. - Brett Wagoner

2