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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 October 18, 2013

POSTED ON BY

Even though there was finally a budget deal to end the shutdown and to raise the debt ceiling, the effects will likely delay when the Fed starts to taper. With another shutdown and default possible early next year combined with Janet Yellen taking over at the Fed, the start of tapering may be a long way off. The start of tapering is just the beginning of a long process of getting back to normal interest rates.

The hints of tapering from the Fed earlier this year was the primary reason for long-term Treasury yields to rise, and this contributed to higher long-term CD rates that we’ve seen in the last few months. If it becomes clear that tapering will be significantly delayed, those higher rates may not last. So far that has not happened. We are still seeing more 2% 5-year CDs. The latest banks to increase their 5-year CD yields to 2.00% are the two GE Capital Banks. First was GE Capital Retail Bank (formerly MetLife Bank). Its Jumbo 5-year CD APY increased from 1.95% to 2.00%. Then GE Capital Bank increased its 5-year CD APY from 1.90% to 2.00%. Both of these are separate banks from a FDIC insurance point of view, but both are divisions of GE Capital. It seems strange that two banks from the same company are competing against each other. Nevertheless, it’s good for savers.

Even Ally Bank raised its 5-year CD rate. It has been a long time since we’ve seen a significant rate increase on this CD. The 5-year CD APY increased from 1.50% to 1.60%. This isn’t close to 2.00%, but remember you typically can get an extra 25 basis points as a renewal bonus. Also, Ally Bank’s CD still has an early withdrawal penalty of only a 2-month of interest. So I continue to list this 5-year CD in the table.

Finally, the best short-term CD deal continues to be at Communitywide Federal Credit Union which has a special 12-month CD with a 2.00% APY. Maximum deposit is $100,000, and the CD requires a checking account with a debit card and a recurring deposit (like direct deposit). Several readers have reported success in joining this all-access credit union and in opening this CD. Please refer to my CD review post and the post comments for more details.

Local CD Deals

There weren’t many local CD rate changes. I just have two additions to mention.

I added the 15-month CD at Security Service Federal Credit Union. This credit union serves many locations in Texas, Colorado and Utah. The rate varies by location, but for many locations this 15-month CD has a 1.25% APY for a $100,000 minimum deposit. Thanks to DA member TheShadow for posting on this deal in the forum.

I also added the 20-month CD special at Superior Choice Credit Union which has branches in Wisconsin and Minnesota. This has a 1.50% APY for a $10,000 minimum deposit.

Finally, if you’re looking for 5-year CDs and you don’t mind opening a CD online, MidFirst Direct continues to offer a good deal. Its 5-year CD still has a 2.25% APY. It’s not available in all states, but residents of several states are eligible (AR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY).

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 October 18, 2013

Under 1-Year CD Rates

InstitutionRatesNotes
EverBank1.10% checking/MMA intro 6-month rate ($100K/$50K max)account review
Ally Bank1.07% (1.60% 5-year CD closed after 6 months)see review & risks
Connexus Credit Union1.00% 6-month CDw/active chk
Doral Direct0.91% 9-month CDaccount review
Bank5 Connect0.90% 6-month CDNot available to MA & RI residents
CapitalSource Bank0.90% ($10K) 6-month CD special
Doral Direct0.87% 6-month CDaccount review
Ally Bank0.85% 11-month No-Penalty CDsee account review

Noteworth Local Deals

InstitutionRatesRegion
Banc of California (formerly Pacific Trust)1.25% ($250K) 1.00% ($100K) Savings Account intro rate until 12/31/13account review (SoCal)
Suntide Credit Union1.15% 6-month CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.10% 6-month CDCorpus Christi, TX metro
Investors Bank1.05% MMA rate guaranteed to 4/30/14 ($100K to $2M)parts of NY and NJ
Doral Bank NY1.00% 6-month CDNYC

1-Year CD Rates

InstitutionRatesNotes
Communitywide Federal Credit Union2.00% ($100K max) 1-year special CD w/active chkaccount review
Ally Bank1.33% (1.60% 5-year CD closed after 1 year)see review & risks
Connexus Credit Union1.10% 1-year CDw/active chk
Nationwide Bank1.06% ($100K) 1.01% ($500) 1-year CD
GE Capital Bank1.05% 1-year CD
DollarSavingsDirect1.05% 1-year CD
GE Capital Retail Bank1.05% ($25K min) 1-year CDFormerly MetLife
CIT Bank1.00% ($25K min)add-on & bump-up 1-year CD
Bank5 Connect1.00% 1-year CDNot available to MA & RI residents
Barclays1.00% (2.00% 5-year CD closed after 1 year)see review & risks

Noteworthy Local Deals

InstitutionRatesRegion
Suntide Credit Union1.75% 1-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.50% 12-month CDCorpus Christi, TX metro
LOMTO Federal Credit Union1.20% 1-year CDparts of New York City
Doral Bank NY1.20% 1-year CDNYC
HAB Bank1.15% 1-year CDSouthern California
Beal Bank1.11% 1-year CDSoutheast FL
Investors Bank1.10% ($10K min) 13-month CDparts of NY and NJ
HAB Bank1.10% 1-year CDNYC metro
General Electric Credit Union1.02% ($100K) 1-year CDCincinnati OH metro

18-month CD Rates

InstitutionRatesNotes
Ally Bank1.42% (1.60% 5-year CD closed after 18 months)see review & risks
First Flight Federal Credit Union1.25% 15-month CD special
GE Capital Retail Bank1.15% 15-month CD specialFormerly MetLife
GE Capital Bank1.10% 18-month CD
Nationwide Bank1.09% ($100K) 1.04% ($500) 18-month CD
Bank5 Connect1.05% 18-month CDnot available to MA & RI residents
Colorado Federal Savings Bank1.05% 18-month CD
CapitalSource Bank1.05% ($10K) 18-month CD
GE Capital Retail Bank1.05% ($100K) 1.00% ($25K) 18-month CDFormerly MetLife
Doral Direct1.02% 18-month CD, one-time penalty-free early withdrawal optionaccount review

Noteworthy Local Deals

InstitutionRatesRegion
Gulf Coast Federal Credit Union1.65% 18-month CDCorpus Christi, TX metro
Superior Choice Credit Union1.50% ($10K) 20-month CDparts of WI and MN
Security Service Federal Credit Union1.25% ($100K) 1.10% ($500) 15-month CDparts of Texas, lower rates in CO and UT
University of Iowa Community Credit Union1.25% 15-month CD specialmany Iowa counties
Doral Bank NY1.25% 18-month CDNYC

2-Year CD Rates

InstitutionRatesNotes
Barclays1.50% (2.00% 5-year CD closed after 2 years)see review & risks
First Flight Federal Credit Union1.50% 23-month and 24-month CD special
Ally Bank1.47% (1.60% 5-year CD closed after 2 years)see review & risks
Connexus Credit Union1.30% 2-year CDw/active chk
Pentagon Federal Credit Union1.26% 2-year CD
Melrose Credit Union1.21% 2-year CD
CIT Bank1.20% ($25K min) add-on & bump-up 2-year CD
GE Capital Retail Bank1.20% ($100K) 1.15% ($25K) 2-year CDFormerly MetLife
Bank5 Connect1.15% add-on 2-year CDnot available to MA & RI residents
Northwest Federal Credit Union1.15% ($100K) 1.05% ($25K) 2-year CD+0.25% w/relationship

Noteworthy Local Deals

InstitutionRatesRegion
Suntide Credit Union2.15% 2-year CDCorpus Christi, TX metro
NavyArmy Community Credit Union1.95% ($100K) 1.85% ($1K) 2-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.85% 2-year CDCorpus Christi, TX metro
Doral Bank NY1.45% 2-year CDNYC
LOMTO Federal Credit Union1.40% 2-year CDparts of New York City
BrightStar Credit Union1.25% 23-month CD (+0.25% w/chk relationship)parts of Southeast FL

3-Year CD Rates

InstitutionRatesNotes
Wilshire State Bank2.28% 3-year installment savings account w/auto xfers, $100K maxaccount review
Connexus Credit Union1.75% 3-year CD w/active chk
Barclays1.67% (2.00% 5-year CD closed after 3 years)see review & risks
Pentagon Federal Credit Union1.51% 3-year CD
Salem Five Direct1.50% ($10K) 3-year CD
Melrose Credit Union1.46% 3-year CD
Intervest National Bank1.45% 3-year CD
Ally Bank1.51% (1.60% 5-year CD closed after 3 years)see review & risks
Andrews Federal Credit Union1.41% 3-year CD
CIT Bank1.30% ($100K) 1.21% ($1K) 3-year CD
Northwest Federal Credit Union1.30% ($100K) 1.20% ($25K) 3-year CD+0.25% w/relationship
Bank5 Connect1.18% (average apy) limited no-penalty 3-year CDnot available to MA & RI residents

Noteworthy Local Deals

InstitutionRatesRegion
NavyArmy Community Credit Union2.05% ($100K) 2.00% ($1K) 30-month CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union2.02% 3-year CDCorpus Christi, TX metro
2.00% 3-year CD specialSouthern CA
Institution For Savings2.00% 30-month CDparts of MA
Doral Bank NY1.60% 3-year CDNYC
Department of Commerce FCU1.55% 3-year CDWashington DC
LOMTO Federal Credit Union1.55% 3-year CDparts of New York City
Home Loan Investment Bank1.50% 3-year CDresidents of RI, MA and CT

4-Year CD Rates

InstitutionRatesNotes
Pentagon Federal Credit Union1.76% 4-year CD
Barclays1.75% (2.00% 5-year CD closed after 4 years)see review & risks
Nationwide Bank1.72% ($100K) 1.67% ($500) 4-year CD
Andrews Federal Credit Union1.71% 4-year CD
Melrose Credit Union1.71% 4-year CD
Communitywide Federal Credit Union1.70% 4-year CDaccount review
Barclays1.65% 4-year CD
iGObanking.com1.65% 4-year CD
Intervest National Bank1.65% 4-year CD
GE Capital Retail Bank1.65% ($100K) 1.50% ($2K) 4-year CDFormerly MetLife
EverBank1.62% 4-year CD
CIT Bank1.60% ($100K) 1.32% ($1K) 4-year CD
Alliant Credit Union1.55% 4-year CD
Ally Bank1.53% (1.60% 5-year CD closed after 4 years)see review & risks
Ally Bank1.30% Raise-Your-Rate 4-year CD

Noteworthy Local Deals

InstitutionRatesRegion
Bank of Utica2.25% 4-year CDCentral New York
Bayer Heritage Federal Credit Union2.02% 4-year CDparts of WV, OH & SC
HarborOne Bank2.00% 4-year CDNew England
Institution For Savings2.00% 4-year CDparts of MA
HAPO Community Credit Union1.90% 4-year CDall of Washington State
Department of Commerce FCU1.80% 4-year CDWashington DC
MidFirst Direct1.75% 4-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
LOMTO Federal Credit Union1.75% 4-year CDparts of New York City
Police and Fire Federal Credit Union1.75% 4-year CDPennsylvania
Doral Bank NY1.65% 4-year CDNYC
Fifth Third Bank1.50% 4-year CD specialseveral eastern and midwestern states

5-Year CD Rates

InstitutionRatesNotes
Stanford Federal Credit Union2.22% ($100K) 5-year CD, requires chk w/ddaccount review
Fidelity New Issue Brokered CD2.15% 5-year non-callable CDissued by Bank of Baroda and GE Capital Retail Bank
American Heritage Federal Credit Union2.10% 5-year online CD
State Bank of India - New York2.05% 5-year CD
Pentagon Federal Credit Union2.02% 5-year CD
EverBank2.01% 5-year CD
GE Capital Bank2.00% 5-year CD
GE Capital Retail Bank2.00% ($100K) 1.95% ($25K) 5-year CDFormerly MetLife
Barclays2.00% 5-year CD
Salem Five Direct2.00% ($10K) 5-year CD
State Farm Bank2.00% 5-year CD
Connexus Credit Union2.00% 5-year CD w/active chk
Communitywide Federal Credit Union2.00% 5-year CDaccount review
Nationwide Bank1.97% ($100K) 1.92% ($500) 5-year CD
Melrose Credit Union1.96% 5-year CD
Intervest National Bank1.95% 5-year CD
Andrews Federal Credit Union1.91% 5-year CD
CIT Bank1.85% ($100K) 1.60% ($1K) 5-year CD
Ally Bank1.60% 5-year CD

Noteworthy Local Deals

InstitutionRatesNotes
Bank of Utica2.50% 5-year CDCentral New York
American Airlines Credit Union2.47% 5-yr/1.46% 2.5-yr CD ladderlimited membership
Progressive Credit Union2.32% 5-year CD (NYC with unique FOM)account review
Bayer Heritage Federal Credit Union2.27% 5-year CDparts of WV, OH & SC
MidFirst Direct2.25% 5-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
BBVA Compass2.25% (w/relationship checking) 2.00% (w/o relation) 5-year CDparts of AL, AZ, CA, CO, FL, NM and TX
First Community Federal Credit Union2.21% 5-year CD w/relationshipparts of MI, WI and IL
Department of Commerce FCU2.10% 5-year CDWashington DC
General Electric Credit Union2.03% 5-year CDCincinnati OH metro
Central Bank & Trust2.02% 5-year CDColorado Springs, CO
Consumers Credit Union2.00% 5-year CD, allows one no-penalty early withdrawal (parts of Michigan)
Home Loan Investment Bank2.00% 5-year CDresidents of RI, MA and CT
HAPO Community Credit Union2.00% 5-year CDall of Washington State
Institution For Savings2.00% 5-year CDparts of MA
LOMTO Federal Credit Union2.00% 5-year CDparts of New York City
Police and Fire Federal Credit Union2.00% 5-year CDPennsylvania

Over 5-Year CD Rates

InstitutionRatesRegion
Fidelity New Issue Brokered CD3.35% 10-year non-callable CDissued by GE Capital Retail Bank and Goldman Sach Bank
Fidelity New Issue Brokered CD2.70% 7-year non-callable CDissued by GE Capital Retail Bank and Goldman Sach Bank
Apple Federal Credit Union2.50% 10-year CD
Apple Federal Credit Union2.10% 7-year CD
Intervest National Bank2.07% ($95K) 2.05% ($2.5K) 10-year CD
GE Capital Bank2.05% 6-year CD
Pentagon Federal Credit Union2.02% 7-year CD
Northrop Grumman FCU1.91% ($40K) 1.75% ($2.5K) 7-year CD
Discover Bank1.90% 10-year CD
Discover Bank1.80% 7-year CD
Third Federal1.75% 6-year CD
Air Force FCU1.75% ($100K) 1.60% ($2.5K) 7-year CD

Noteworthy Local Deals

InstitutionRatesRegion
Hutchinson Credit Union3.15% ($250K) 3.10% ($100K) 3.05% ($25K) 10-year CDKansas
Frick Tri-County Federal Credit Union3.00% 10-year CDparts of Western PA
Dollar Bank2.75% 10-year CDPittsburgh and Cleveland
SACU2.75% ($90K) 2.70% ($10K) 10-year CDSan Antonio, TX
Franklin Federal Savings Bank2.73% 7-year CDRichmond, VA metro
Frick Tri-County Federal Credit Union2.50% 8-year CDparts of Western PA
MidFirst Bank2.70% 7-year CDAZ and OK
Hutchinson Credit Union2.50% ($250K) 2.40% ($100K) 2.30% ($25K) 6-year CDKansas
Franklin Federal Savings Bank2.42% 6-year CDRichmond, VA metro
Wright-Patt Credit Union2.40% ($100K) 2.30% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
SACU2.25% ($100K) 2.20% ($10K) 7-yearSan Antonio, TX
Security Service Federal Credit Union2.20% ($100K) 2.05% ($500) 7-year CDparts of Texas, lower rates in CO and UT
Columbia Bank2.10% 7-year CDNew Jersey
Randolph-Brooks Federal Credit Union2.07% 7-year CDSan Antonio & Austin, TX
Gateway Metro Federal Credit Union2.05% 6-year CDSt. Louis metro
First Republic Bank2.00% (w/chk) 1.75% (w/o chk) 6-year CDparts of CA, CT, FL, MA, NY & OR
Columbia Bank1.95% 6-year CDNew Jersey

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

  Tags: CD rates

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Comments
2 comments.
Comment #1 by Anonymous posted on
Anonymous
Bought my first brokered CD about a week ago and I noticed its estimated value was up $700. Called the broker and he said that doesn't mean anything. Its only an estimate based on their secondary market model. He said if I put it out for sale, there could be a buyer or not, but the estimate is usually higher than the price you'll get, given commissions and dealer costs. He also said that was a good rate to have given that interest rates dropped since then. He added that it would be worth more in the secondary market if it did not have the call schedule it has. So there is ONE good thing about this low interest environment - I'm learning about brokered CDs!

8
Comment #2 by QED posted on
QED
I agree with Ken's opening remarks here.  His points about tapering are especially well taken.  I could not help thinking though, as I read Ken's comments, that I was reading a portion of America's epitaph.

6