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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 April 5, 2013

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Since PenFed had already cut its CD rates in March, I had hoped they were going to hold them steady in April. Unfortunately, that wasn't the case. On April 1st, PenFed CD rates fell from 25 bps to 40 bps. The highest yield is now only 1.50%, and that's a 7-year term. Due to these rate cuts, I've removed all of PenFed's CDs from my survey except its 7-year CD. Since there are so few 7-year CDs, I'll keep it on the list for now. Hopefully, PenFed will be back with competitive CD rates later this year.

Another all-access credit union that cut rates in April was State Department FCU. Its 5-year IRA CD yield fell from 2.02% to 1.86%, and its 5-year CD yield fell from 1.91% to 1.76%.

I now only have three credit unions with 2% 5-year CDs. Two of these (Stanford and Connexus) have checking requirements to qualify for the 2%. The only one that doesn't have a checking requirement is Mountain America Credit Union. It kept its 5-year CD and IRA CD at 2.00% APY for April.

If you prefer shorter terms, I added a 1.15% APY 1-year CD to the list. It's available through BofI Federal Bank. This is the bank that runs Bank of Internet USA and UFB Direct. However, this CD isn't available through these websites. It's available through several affinity group websites. BofI Federal Bank has partnered with several organizations to market its banking products to the organizations' members. All of these affinity group websites have rates much higher than the rates available at Bank of Internet USA. The available products include checking, savings and a 1-year CD with a 1.15% APY. I have a list of these affinity websites in this blog post. Some of these organizations are open to everyone. One example is the American Seniors Association.

If a 1-year term is too long, you may want to consider Ally's 11-month No Penalty CD. Since you can close this CD without a penalty, the CD can have any term you want from 7 days to 11 months. After several weeks of the No Penalty CD rates falling, it went up this week from 0.81% to 0.85%. So now it's just a little bit higher than Ally's savings account rate. If you're wondering whether to open this CD or the savings account, you may be interested in my post that I did on Monday.

Local CD Deals

In addition to the two all-access credit unions that cut rates in April, there were a few other credit unions which cut their CD rates. One noteworthy one is General Electric Credit Union which is located in the Cincinnati metro area. Its 5-year CD yield of 2.33% had held steady for the last year. That fell this week to 2.03% APY. It also had a Jumbo 1-year CD with a very competitive rate. It had a 1.27% APY that had held steady for the last year. That also fell. It's now 1.02% APY.

There were also CD rate cuts at University of Iowa Community Credit Union, San Antonio Credit Union (SACU) and Randolph-Brooks FCU which is located in Central Texas. In addition, Premier America Credit Union ended its special 13-month CD.

Even though there were big rate cuts at University of Iowa Community Credit Union, it came out with a new 42-month CD special with a 1.95% APY for a $250K minimum, 1.85% APY for a $100K minimum and a 1.75% APY for a $1K minimum.

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 April 5, 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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