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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 July 5, 2013

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Survey of the Best CD Rates for July 5, 2013

According to Bloomberg, Treasury “[y]ields climbed to the highest levels since August 2011 as a Labor Department report showed the economy added 195,000 jobs in June, compared with the median forecast of 165,000 in a Bloomberg News survey.” Will these higher Treasury yields lead to higher CD rates? There’s still no clear trend of higher CD rates, but there have been a few banks and credit unions that have raised their CD rates.

One of those is Stanford Federal Credit Union which raised many of its CD rates this week. Its 5-year Jumbo Premium certificate yield went up from 2.07% to 2.22%. This 2.22% APY is the highest 5-year CD rate that’s nationally available.

There have also been a few rate hikes on shorter term CDs. Colorado Federal Savings Bank raised its 1-year CD yield from 0.95% to 1.00% and its 18-month CD yield from 0.95% to 1.05%.

GE Capital Bank also had similar rate hikes. Its 18-month CD yield increased from 1.00% to 1.10%, and that is now in second place for the highest 18-month CD rate that’s nationally available. Only the 1.15% APY 18-month CD at Northern Bank & Trust Company is higher.

The best deal continues to be the 2.00% APY 2-year CD special at USAlliance Federal Credit Union. I reviewed this special last Friday. Several readers have shared their experience joining this credit union and opening this CD in my USAlliance and CD review. Update #2 - 7/6/13: I was just informed by a USAlliance official that they have ended the 2% CD promotion effective immediately. The 13-month and 11-month CD specials are still available.

Local CD Deals

CD rate changes for the local CDs were mixed this week.

One of the best CD deals in the nation has been the 30-month CD at Navy Army Community Credit Union in Texas. The yield had been 2.50% for most of this year. That yield finally went down this week, but it remains a great deal. The new yield is 2.30%.

Two other credit unions also cut their CD rates. Shell Federal Credit Union in Houston lowered its Jumbo 5-year CD yield from 1.95% to 1.75%. Dayton Firefighters Federal Credit Union in Ohio lowered its CD rates by 9 bps. Its Jumbo 5-year CD yield fell from 2.08% to 1.99%.

On the plus side, San Antonio Federal Credit Union (SACU) in Texas increased its CD rates. Its 10-year CD yield increased from 2.55% to 2.75%, and that’s now in second place as the highest CD rate in the nation.

Institution For Savings in Massachusetts added a new 2% CD. It has been offering a 2% APY for 4-year and 5-year CDs. This week it increased its 40-month CD yield to 2.00%.

Finally, I added the 5-year Jumbo IRA CD that’s available at Transportation Federal Credit Union in Washington DC. This has a 2.17% APY.

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.

If you want to compare the effective yields of other CDs after the early withdrawal penalties, please refer to our CD early withdrawal penalty calculator.

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 July 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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Comments
6 Comments.
Comment #1 by Bancxman (anonymous) posted on
Bancxman
Ken's announcement of the USA Alliance CD special offers underlines for the umpteen time how beneficial it is to regularly follow this blog. The 1.98/2.00 two year CD rate gets me 113 basis points more than I was getting for my money at Capital One.

Thanks again, Ken.

13
Comment #2 by Anonymous posted on
Anonymous
The yield on the 10 yr UST Bond was 2.715 today at closing, which amounts to an effective yield of about 3.315 or so in those states that do not tax UST interest. Another good week, back to back.

4
Comment #3 by OldGuy posted on
OldGuy
USALLIANCE SAYS IT IS DISCONTINUING THE 2-YEAR CD OFFERING ON MONDAY.  I WAS ABLE TO OPEN ONE THIS MORNING ON THE TELEPHONE, AND WAS TOLD THAT TELEPHONE APPLICATIONS WOULD BE TAKEN UNTIL 1 PM TODAY.  ALSO, THAT ONLINE APPLICATIONS COULD BE  THROUGH TOMORROW.  RIGHT NOW, THE 24-MONTH CD DOESN'T SHOW UP ON THE ONLINE APPLICATION PAGES ON MY COMPUTER, BUT APPARENTLY THE CSRS CAN STILL SEE IT ON THEIR END.  I'VE INFORMED THE CU OF THIS PROBLEM. 

7
Comment #4 by Anonymous posted on
Anonymous
Ken, you wrote:
“ Ally Bank - 1.00% (1.50% 5-year CD closed after 6 months, see review & risks) “

I can not get to this number no matter how I slice it.

My calculation:

$100K CD closed at 6months = $750 minus 60 days penalty $250 = $500

That amounts to 0.5% interest and not 1% as stated in your review. Am I missing something?

2
Comment #5 by Anonymous posted on
Anonymous
Maybe the $500 for 6 months is only 0.5% but on an annual basis the rate would be 1.0%.

1
Comment #6 by Anonymous posted on
Anonymous
To #5, thanks for the reply, however, Ken stated 5 year CD closed after 6 months, not one year (that would make it one year CD not 6 months CD)

1