Survey of the Best CD Rates for March 22, 2013

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

• EverBank - 1.25% checking/MMA intro 6-month rate ($100K/$50K max) account review
• Ally Bank - 1.02% (1.54% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.00% 6-month CD w/active chk
• Doral Bank Direct - 0.93% 9-month CD, account review
• Doral Bank Direct - 0.89% 6-month CD, account review
• Ally Bank - 0.81% 11-month No-Penalty CD, see account review
• Colorado Federal Savings Bank - 0.80% 6-month CD

• Noteworthy Local Deals

• HomeBanc N.A. - 1.50% ($75K max) 3-month CD (Central Florida)
• Quabbin Online Credit Union - 1.25% (max $100K) 6-month CD (parts of MA)
• PacTrust Bank - 1.25% ($250K) 1.00% ($100K) Savings Account intro rate until 12/31/13, account review (SoCal)
• 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)
• Oritani Bank - 1.02% checking intro rate until 1/2/14 (Northeast NJ)
• Union Bank - 1.00% MMA intro rate until 12/31/13 (WA and OR)

1-Year CD Rates

• Ally Bank - 1.28% (1.54% 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
• Colorado Federal Savings Bank - 1.05% 1-year CD
• NexBank - 1.05% 1-year CD, account review
• GE Capital Retail Bank (formerly MetLife) - 1.05% ($25K min) 1-year CD
• Citizens State Bank - 1.05% ($100K) 0.99% ($1K) 1-year CD, account review
• Pentagon Federal Credit Union - 1.00% 1-year CD
• Barclays - 0.92% (1.85% 5-year CD closed after 1 year, see review & risks)

• Noteworthy Local Deals

• City County Credit Union - 1.51% 1-year IRA-only CD (many FL counties)
• Melrose Cooperative Bank - 1.50% 1-year CD (parts of MA)
• Gulf Coast Federal Credit Union - 1.50% 12-month CD (Corpus Christi, TX metro)
• Hudson Valley FCU - 1.30% 13-month CD special (parts of New York)
• General Electric Credit Union - 1.27% ($100K) 1-year CD (Cincinnati OH metro)
• Security Service Federal Credit Union - 1.25% ($100K) 1.10% ($500) 13-month CD (parts of Texas, lower rates in CO and UT)
• University of Iowa Community Credit Union - 1.25% ($250K) 1.15% ($100K) 1.05% ($1K) 13-month CD (several parts of Iowa)
• LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
• Doral Bank NY - 1.20% 1-year CD (NYC)
• Beal Bank - 1.11% 1-year CD (Southeast FL)
• Premier America Credit Union - 1.03% 13-month CD (SoCal and Houston)
• CapitalSource Bank - 1.01% 1-year CD (Southern California)

18-month CD Rates

• Ally Bank - 1.37% (1.54% 5-year CD closed after 18 months, see review & risks)
• Barclays - 1.23% (1.85% 5-year CD closed after 18 months, see review & risks)
• NexBank - 1.15% 18-month CD, account review
• GE Capital Retail Bank (formerly MetLife) - 1.10% ($15K min) 18-month CD
• Salem Five Direct - 1.05% 18-month CD
• Nationwide Bank - 1.10% ($100K) 1.05% ($500) 18-month CD

• Noteworthy Local Deals

• Gulf Coast Federal Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
• TEXAR Federal Credit Union - 1.35% 18-month CD (Northeast TX)
• Libertad Bank - 1.25% 18-month CD (Texas)
• Doral Bank NY - 1.25% 18-month CD (NYC)
• El Paso Area Teachers FCU - 1.21% ($50K) 1.11% ($500) 18-month CD (El Paso, TX)
• Hyperion Bank - 1.20% 18-month CD (Philadelphia, PA)

2-Year CD Rates

• Ally Bank - 1.41% (1.54% 5-year CD closed after 2 years, see review & risks)
• Barclays - 1.38% (1.85% 5-year CD closed after 2 years, see review & risks)
• Pentagon Federal Credit Union - 1.35% 2-year CD, account review
• 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)
• Nationwide Bank - 1.25% ($100K) 1.20% ($500) 2-year CD
• CIT Bank - 1.20% ($25K min) add-on & bump-up 2-year CD

• Noteworthy Local Deals

• South Florida Federal Credit Union - 2.01% 2-year IRA CD (Southeast Florida)
• Gulf Coast Federal Credit Union - 1.85% 2-year CD (Corpus Christi, TX metro)
• TEXAR Federal Credit Union - 1.50% 2-year CD (Northeast TX)
• Doral Bank NY - 1.45% 2-year CD (NYC)
• University of Iowa Community Credit Union - 1.45% ($250K) 1.35% ($100K) 1.25% ($1K) 25-month CD (several parts of Iowa)
• LOMTO Federal Credit Union - 1.40% 2-year CD (parts of New York City)
• 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)
• Connexus Credit Union - 1.75% 3-year CD w/active chk
• Pentagon Federal Credit Union - 1.60% 3-year CD, account review
• Barclays - 1.54% (1.85% 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
• Ally Bank - 1.45% (1.54% 5-year CD closed after 3 years, see review & risks)
• 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)
• Barclays - 1.35% 3-year CD
• CIT Bank - 1.35% ($100K) 1.30% ($1K) 3-year CD
• Salem Five Direct - 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)
• Department of Commerce FCU - 1.60% 3-year CD (Washington DC)
• 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)
• Workers Credit Union - 1.50% ($25K) 1.40% ($500) 3-year CD w/chk+dd (MA & Southern NH)
• Dime Savings Bank - 1.50% 30-month IRA-only CD (NYC)

4-Year CD Rates

• Andrews Federal Credit Union - 1.71% 4-year CD
• Melrose Credit Union - 1.71% 4-year CD
• Barclays - 1.62% (1.85% 5-year CD closed after 4 years, see review & risks)
• Nationwide Bank - 1.61% ($100K) 1.56% ($500) 4-year CD
• Pentagon Federal Credit Union - 1.60% 4-year CD, account review
• Barclays - 1.55% 4-year CD
• Alliant Credit Union - 1.55% 4-year CD
• Ally Bank - 1.48% (1.54% 5-year CD closed after 4 years, see review & risks)
• Green Bank, N.A. - 1.50% 4-year CD
• Discover Bank - 1.40% 4-year CD
• Ally Bank - 1.30% 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)
• Melrose Cooperative Bank - 2.00% 4-year CD (parts of MA)
• Jefferson Financial Credit Union - 2.00% 4-year CD (parts of Louisiana)
• Department of Commerce FCU - 1.80% 4-year CD (Washington DC)
• LOMTO Federal Credit Union - 1.75% 4-year CD (parts of New York City)
• Empower Federal Credit Union - 1.65% ($100K) 1.50% ($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)
• HAPO Community Credit Union - 1.65% 4-year CD (all of Washington State)
• Shell Federal Credit Union - 1.60% ($50K) 1.55% ($500) 4-year CD (Houston, TX)

5-Year CD Rates

• 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
• Melrose Credit Union - 1.96% 5-year CD
• Andrews Federal Credit Union - 1.91% 5-year CD
• Barclays - 1.85% 5-year CD
• Green Bank, N.A. - 1.85% 5-year CD
• CIT Bank - 1.75% ($100K) 1.70% ($1K) 5-year CD
• Nationwide Bank - 1.75% ($100K) 1.70% ($500) 5-year CD
• Pentagon Federal Credit Union - 1.65% 5-year CD
• Ally Bank - 1.54% 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)
• Security First Credit Union - 2.43% ($50K) 2.38% ($10K) 5-year CD (South Texas)
• General Electric Credit Union - 2.33% 5-year CD (Cincinnati OH metro)
• 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)
• Actors Federal Credit Union - 2.15% IRA 2.00% CD 5-year (SEG groups in LA, NYC & Chicago)
• Security Service Federal Credit Union - 2.15% ($100K) 2.00% ($500) 5-year CD (parts of Texas, lower rates in CO and UT)
• American United Family of Credit Unions - 2.15% ($75K) 2.10% ($500) 5-year CD (parts of Utah)
• Denver Community Credit Union - 2.10% ($50K) 1.85% ($100) 5-year CD (Denver County)
• Department of Commerce FCU - 2.05% 5-year CD (Washington DC)
• City County Credit Union - 2.02% (2.28% for premium relationship) 5-year CD (many FL counties)
• Visions Federal Credit Union - 2.02% 5-year CD (2.28% w/relationship) (NY, PA & NJ)
• Idaho Central Credit Union - 2.00% 5-year bump-up CD (Idaho)
• Melrose Cooperative Bank - 2.00% 5-year CD (parts of MA)
• Dime Savings Bank - 2.00% 5-year IRA-only CD (NYC)
• 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)
• Police and Fire Federal Credit Union - 2.00% 5-year CD (Pennsylvania)
• Empower Federal Credit Union - 1.95% ($100K) 1.80% ($10K) 5-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• Shell Federal Credit Union - 1.95% ($50K) 1.90% ($500) 5-year CD (Houston, TX)
• Miami Postal Service Credit Union - 1.91% 5-year CD (Southeast FL)
• Freedom Credit Union - 1.90% add-on 5-year CD (Philadelphia)
• 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
• 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
• Navy Federal Credit Union - 1.90% ($100K) 1.80% ($20K) 6-year CD (membership restrictions)
• Northrop Grumman FCU - 1.88% ($40K) 1.72% ($2.5K) 7-year CD
• Pentagon Federal Credit Union - 1.75% 7-year CD
• E-LOAN - 1.50% 6-year CD

• Noteworthy Local Deals

• Security Service Federal Credit Union - 2.55% ($100K) 2.40% ($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 - 2.40% ($90K) 2.35% ($10K) 10-year CD (San Antonio, TX)
• SACU - 2.15% ($100K) 2.10% ($10K) 7-year (San Antonio, TX)
• Columbia Bank - 2.10% 7-year CD (New Jersey)
• Gateway Metro Federal Credit Union - 2.05% 6-year CD (St. Louis metro)
• Gesa Credit Union - 2.02% 7-year CD (Washington State)
• Randolph-Brooks Federal Credit Union - 2.02% ($75K) 2.02% ($1K) 7-year CD (San Antonio & Austin, TX)
• 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)
• Empower Federal Credit Union - 1.95% ($100K) 1.80% ($10K) 7-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• Randolph-Brooks Federal Credit Union - 1.87% ($75K) 1.87% ($1K) 6-year CD (San Antonio & Austin, TX)
• Dime Savings Bank - 1.70% 7-year CD (NYC)

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

Tags: CD rates