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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 30, 2013

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Treasury yields fell a little this week, but they remain high compared to earlier this year. We continue to see more banks raise their long-term CD rates. However, short-term CD rates and savings account rates are holding steady or in a few cases going down. This might be more common as the Fed slowly exits from ZIRP, and it will make it tough on savers as they try to decide whether they should keep their money liquid in savings accounts or jump on these higher long-term CD rates. If savers wait, they may find their savings account rates continue to slowly fall for the next couple of years. However, if they jump on the higher CD rates now, they may miss out on even higher CD rates a few more months from now. I reviewed some of these concerns in my post on deposit account strategies in a rising interest rate environment.

Four internet banks that increased their long-term CD rates this week include CIT Bank, Barclays, EverBank and iGObanking.com. None of these new CD rates reached 2%, but they came close. EverBank’s 5-year CD APY increased from 1.86% to 1.91%, Barclays’ 5-year CD APY increased from 1.65% to 1.90% and CIT Bank’s 5-year Jumbo CD APY increased from 1.75% to 1.85%.

iGObanking.com’s 5-year CD APY continues to hold steady at 2.05%, and is still the best deal for 5-year CDs. The rate increases were on its 3-year and 4-year CDs. Its 3-year CD APY increased from 0.35% to 1.40% and its 4-year CD APY increased from 0.35% to 1.65%. Its 7-year and 10-year CD rates are still only 0.35%. This has been typical with iGObanking. Its rates are either pathetic or very competitive.

With September beginning on Sunday, we may see more CD rate increases at credit unions next week. Credit unions like PenFed typically make CD rate changes at the start of the month. One all-access credit union that made a CD rate change this week was Apple Federal Credit Union. Its 10-year CD APY increased from 2.25% to 2.40%. Apple FCU continues to offer the top long-term CD rate that’s nationally available and directly available from an institution.

The best long-term rates continue to be from brokered CDs. Today Fidelity was listing new-issue non-callable 10-year CD rate of 3.10%. The top non-callable 7-year CD rate was 2.60%. The two banks that were offering these CD rates are GE Capital Bank and GE Capital Retail Bank. These are two separate banks that are both under GE Capital. Their internet banks are also competing with each other.

Local CD Deals

The local CD rates held up well this week. Most of the changes were additions of new CDs, and as you might expect, most of the additions were long-term CDs.

MidFirst Bank increased its 7-year CD APY from 2.00% to 2.50%. It’s a sizable bank with many branches in Oklahoma and Arizona.

Wright-Patt Credit Union in Ohio increased its Jumbo 6-year CD APY from 2.10% to 2.30%.

Central Bank & Trust in Colorado Springs is offering a 2.02% APY 5-year CD.

We lost one great short-term CD deal. Horizon Credit Union in Washington State and Idaho ended its 18-month CD special which had a 2.02% APY. On the plus side, I added a new short-term deal, but it’s not nearly as good as what Horizon was offering. This new deal is at Commerce Bank in Massachusetts. Its Boston branches are offering a money market special with a 1.10% APY guaranteed to 12/31/13. So this is like a 4-month CD.

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 30, 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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