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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 August 2, 2013

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Treasury yields fell after the weaker-than-expected job report was released this morning. That reduces the odds that the Fed will begin to taper its bond buying program in September. Treasury yields are still high compared to where they were a couple of months ago, and it still looks like the economy is slowly improving which should eventually push the Fed into the slow tightening process. So I’m hopeful that the increases in Treasury yields and CD rates that we’ve seen in the last couple of months won’t be short-lived.

CD rates were pretty steady this week. We didn’t see any new 2% CDs from internet banks. There are still three internet banks with 2% 5-year CDs. These include EverBank, iGObanking.com and Salem Five Direct. These banks probably believe rates are heading up, and they think this is a good time to attract deposits.

The only bank on my list with nationally available CDs that increased rates this week was GE Capital Retail Bank (formerly MetLife Bank). Its Jumbo 5-year CD rate increased from 1.75% to 1.85% APY, and its Jumbo 4-year CD rate increased from 1.50% to 1.55% APY.

I added a new internet bank to the list. It’s Bank5 Connect, and it has offers some competitive short-term CDs. The most competitive is its 6-month CD which has a 0.90% APY. Its 2-year and 3-year CDs don’t have the best rates, but they have some nice features (see my review).

The best deal this week came from Aspire Federal Credit Union which has a special 15-month CD with a 1.25% APY. The credit union makes it easy for anyone to join via an association (see my review).

Local CD Deals

Just like the nationwide CDs, the local CD rates were pretty steady this week. There continues to be signs that a few banks and credit unions are being influenced by the rising Treasury yields. Randolph-Brooks Federal Credit Union in Central Texas again increased its long-term CD rates. This is the fourth straight week that it has increased these rates. Its 7-year CD now has a 2.17% APY, and its 6-year CD has a 1.92% APY.

First Republic Bank increased its 6-year CD rate from 2.15% to 2.25% APY. Customers with a checking relationship can get 2.50% APY. Branches are located in several large metro areas around the country.

I added two institutions which have recently increase their 5-year CD rates to 2%. Home Loan Investment Bank in Rhode Island increased its 5-year CD rate from 1.50% to 2.00% APY, and Bayer Heritage Federal Credit Union increased its 5-year CD rate from 1.64% to 2.02% APY. Some of their shorter-term CD rates also went up. Membership in Bayer Heritage FCU is available to people who live in parts of West Virginia, Ohio and South Carolina.

Hopefully, these rate hikes are a start of a trend, but after over four years of this interest rate environment, I’m hesitant to be too confident.

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 August 2, 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
Comment #1 by Anonymous posted on
Anonymous
USAlliance FCU 18 month cd 1.05%

4