Dedicated to Deposits: Deals, Data, and Discussion

Survey of the Best CD Rates for November 22, 2013

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Treasury yields had big gains on Wednesday after the Fed meeting minutes suggested the tapering process could start at its next meeting in December. However, yields declined some after the release of improving economic data. For the week, long-term Treasury yields rose slightly.

This is a tough position for CD investors when there’s decent chance of much higher CD rates in the next couple of years. Do you jump on current CD deals, or do you wait for higher CD rates?

The recent rumors at PenFed highlight this issue. Some PenFed customer service reps have said that they’ll be increasing their 5-year and 7-year CD rates to 3% APY in December. This is not yet official, but many past reports from PenFed CSRs have turned out to be correct. Currently, PenFed is offering 2.02% APY for CDs with terms of 3 to 7 years.

Best Deal: PenFed’s 2.02% 3yr CD

With the potential of a 3% 5-year CD, it’s hard to get excited about the current 2% 5-year CDs. This week, a few banks left the 2% club, and a few joined it.

EverBank and Nationwide Bank both left the 2% club this week with rate cuts on their 5-year CDs.

iGOBanking.com returned to the 2% club with a 2.00% APY 5-year CD (it had been 0.35%). Its 4-year CD rate fell from 1.65% to 0.35% APY. This has been typical of iGOBanking.com. Their CD rates cycle between terrible rates to great rates. I’m not sure I can trust a bank that changes rates like this.

I added one new 5-year CD rate to the nationwide list. Michigan State University Federal Credit Union is offering a 2.11% APY 5-year Jumbo CD. This is an all-access credit union like PenFed.

Local CD Deals

Two noteworthy rate cuts this week were at HAPO Community Credit Union in Washington State and Wright-Patt Credit Union in Ohio.

HAPO CD rates fell by 20 basis points. That lowered the 5-year CD yield to 1.80% which was too low for my list. Its 4-year CD is now 1.70% which is still good enough to remain on my list.

Wright-Patt increased their rates in the previous week, but those rates didn’t last long. Today they fell. The 5-year Jumbo CD yield fell from 2.05% to 1.90%, and the 6-year Jumbo CD yield fell from 2.50% to 2.40%.

I added two new banks to the local list.

The first is BBCN Bank which has branches in parts of CA, WA, IL, NY, NJ and VA. It has two good short-term deals. The first is a money market account special which guarantees a 1.00% APY for balances of at least $50K until the end of 2014. Due to the rate guarantee, I put this in the "under 1-year CD" category. The second deal is a 1-year CD special with a 1.10% APY. Like the MMA special, this has a $50K minimum deposit.

The second addition is Spokane Teachers Credit Union (STCU) which is offering a 30-month CD with a 2.02% APY. Anyone in Washington State and parts of Idaho is eligible to join this credit union.

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 (until 12/7/2013), it's still a good deal when closed early even with the recent rate cuts (Note, this is scheduled to change on new CDs on 12/7/13. See post.)

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 November 22, 2013

Under 1-Year CD Rates

InstitutionRatesNotes
Communitywide Federal Credit Union2.00% ($50K max) 6-mo special CD w/active chkaccount review
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
Xceed Financial Credit Union1.00% 7-month CD
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 Bank0.87% 11-month No-Penalty CDsee account review

Noteworth Local Deals

InstitutionRatesRegion
HomeBanc1.35% (max $75K) 3-month CDCentral Florida
Suntide Credit Union1.15% 6-month CDCorpus Christi, TX metro
Doral Bank NY1.00% 6-month CDNYC
BBCN Bank1.00% ($50K) MMA w/guarantee to 12/31/14Parts of CA, WA, IL, NY, NJ and VA
Capital One Bank1.00% savings acct w/1yr rate lockParts of TX, NY, NJ, MD, VA and DC

1-Year CD Rates

InstitutionRatesNotes
Ally Bank1.33% (1.60% 5-year CD closed after 1 year)see review & risks
Connexus Credit Union1.10% 1-year CDw/active chk
CIT Bank1.05% ($25K min)add-on & bump-up 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
Nationwide Bank1.01% ($100K) 0.96% ($500) 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 Union1.55% 1-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.50% 12-month CDCorpus Christi, TX metro
University of Iowa Community Credit Union1.25% 14-month CD specialmany Iowa counties
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
Regal Financial Bank1.11% 11-month CD specialWashington State
Beal Bank1.11% 1-year CDSoutheast FL
BBCN Bank1.10% ($50K) 1-year CDParts of CA, WA, IL, NY, NJ and VA
HAB Bank1.10% 1-year CDNYC metro
General Electric Credit Union1.02% ($100K) 1-year CDCincinnati OH metro

18-month CD Rates

InstitutionRatesNotes
McGraw-Hill Federal Credit Union1.50% 15-month CD specialw/active checking with direct deposit
Ally Bank1.42% (1.60% 5-year CD closed after 18 months)see review & risks
Xceed Financial Credit Union1.25% 19-month CD
GE Capital Retail Bank1.15% 15-month CD specialFormerly MetLife
GE Capital Bank1.15% 18-month CD
GE Capital Retail Bank1.10% ($100K) 1.05% ($25K) 18-month CDFormerly MetLife
Nationwide Bank1.09% ($100K) 1.04% ($500) 18-month CD
Bank5 Connect1.05% 18-month CDnot available to MA & RI residents
CapitalSource Bank1.05% ($10K) 18-month CD
Doral Direct1.02% 18-month CD, one-time penalty-free early withdrawal optionaccount review

Noteworthy Local Deals

InstitutionRatesRegion
Money One Federal Credit Union1.90% 19-month CD specialMD, VA and DC
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
NEFCU1.25% 20-month CDLong Island, NY
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
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
Bank5 Connect1.25% add-on 2-year CDnot available to MA & RI residents
Melrose Credit Union1.21% 2-year CD
CIT Bank1.20% ($25K min) add-on & bump-up 2-year CD
Northwest Federal Credit Union1.15% ($100K) 1.05% ($25K) 2-year CD+0.25% w/relationship

Noteworthy Local Deals

InstitutionRatesRegion
Suntide Credit Union1.95% 2-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.85% 2-year CDCorpus Christi, TX metro
NavyArmy Community Credit Union1.70% ($100K) 1.40% ($1K) 2-year CDCorpus Christi, TX metro
Doral Bank NY1.45% 2-year CDNYC
LOMTO Federal Credit Union1.45% 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
Pentagon Federal Credit Union2.02% 3-year CD
Connexus Credit Union1.75% 3-year CD w/active chk
Barclays1.67% (2.00% 5-year CD closed after 3 years)see review & risks
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 Bank1.40% ($100K) 1.27% ($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) 1.75% ($1K) 3-year CDCorpus Christi, TX metro
Spokane Teachers Credit Union (STCU)2.02% ($25K) 30-month CDWA State & parts of ID
Gulf Coast Federal Credit Union2.02% 3-year CDCorpus Christi, TX metro
2.00% 3-year CD specialSouthern CA
Institution For Savings2.00% 3-yearCDparts of MA
LOMTO Federal Credit Union1.60% 3-year CDparts of New York City
Doral Bank NY1.60% 3-year CDNYC
Department of Commerce FCU1.55% 3-year CDWashington DC

4-Year CD Rates

InstitutionRatesNotes
Pentagon Federal Credit Union2.02% 4-year CD
Barclays1.75% (2.00% 5-year CD closed after 4 years)see review & risks
CIT Bank1.75% ($100K) 1.65% ($1K) 4-year CD
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
GE Capital Retail Bank1.70% ($100K) 1.50% ($2K) 4-year CDFormerly MetLife
Communitywide Federal Credit Union1.70% 4-year CDaccount review
GE Capital Bank1.67% 4-year CD
Barclays1.65% 4-year CD
Intervest National Bank1.65% 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
EverBank1.44% 4-year CD
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 Union2.15% 4-year CDparts of WV, OH & SC
HarborOne Bank2.00% 4-year CDNew England
Institution For Savings2.00% 4-year CDparts of MA
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
HAPO Community Credit Union1.70% 4-year CDall of Washington State
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
Michigan State University FCU2.11% ($100K) 5-year CD
American Heritage Federal Credit Union2.10% 5-year online CD
CIT Bank2.05% ($100K) 1.85% ($1K) 5-year CD
GE Capital Retail Bank2.05% ($100K) 2.00% ($25K) 5-year CDFormerly MetLife
State Bank of India - New York2.05% 5-year CD
Pentagon Federal Credit Union2.02% 5-year CD
GE Capital Bank2.01% 5-year CD
Fidelity New Issue Brokered CD2.00% 5-year non-callable CDissued by GE Capital Retail Bank
Barclays2.00% 5-year CD
iGObanking.com2.00% 5-year CD
Salem Five Direct2.00% ($10K) 5-year CD
Connexus Credit Union2.00% 5-year CD w/active chk
Communitywide Federal Credit Union2.00% 5-year CDaccount review
McGraw-Hill Federal Credit Union2.00% 5-year CD specialw/active checking with direct deposit
Melrose Credit Union1.96% 5-year CD
Nationwide Bank1.95% ($100K) 1.90% ($500) 5-year CD
Intervest National Bank1.95% 5-year CD
EverBank1.94% 5-year CD
Andrews Federal Credit Union1.91% 5-year CD
State Farm Bank1.90% 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
Bayer Heritage Federal Credit Union2.40% 5-year CDparts of WV, OH & SC
Progressive Credit Union2.32% 5-year CD (NYC with unique FOM)account review
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
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
Wright-Patt Credit Union1.90% ($100K) 1.80% ($500) 5-year CDUS gov military and civilian personnel, Parts of OH

Over 5-Year CD Rates

InstitutionRatesRegion
Fidelity New Issue Brokered CD3.30% 10-year non-callable CDissued by GE Capital Retail Bank and GE Capital Bank
Fidelity New Issue Brokered CD2.70% 7-year non-callable CDissued by GE Capital Retail Bank and Comenity Capital FOA World FCB
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 FCU1.92% ($40K) 1.76% ($2.5K) 7-year CD
Discover Bank1.90% 10-year CD
Discover Bank1.80% 7-year CD
Third Federal1.75% 6-year CD

Noteworthy Local Deals

InstitutionRatesRegion
Hutchinson Credit Union3.15% ($250K) 3.10% ($100K) 3.05% ($25K) 10-year CDKansas
PeoplesChoice Credit Union3.04% 10-year CDYork and Cumberland Counties of Maine
Frick Tri-County Federal Credit Union3.00% 10-year CDparts of Western PA
Dollar Bank2.75% 10-year CDPittsburgh and Cleveland
MidFirst Direct2.75% 7-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
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
Gateway Metro Federal Credit Union2.05% 6-year CDSt. Louis metro
Randolph-Brooks Federal Credit Union1.97% 7-year CDSan Antonio & Austin, TX
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
6 Comments.
Comment #1 by Anonymous posted on
Anonymous
"yields declined some after the release of improving economic data"...don't yields increase when the economy improves due to higher risk of inflation and greater chance of QE tapering?

4
Comment #2 by Ken Tumin posted on
Ken Tumin
Yes, that was perplexing. Some other factors must be having an effect.

4
Comment #3 by Shorebreak posted on
Shorebreak
This was the opposite of what market participants had done earlier this week during which they allocated cash out of longer-dated bonds and into shorter-dated notes.

In essence, they are betting that the Federal Reserve's firm commitment to keeping policy rate near zero for longer would boost prices of shorter-dated notes, while longer-dated bonds would weaken once the Fed starts to dial back its $ 85 billion-per-month purchases of Treasurys and mortgage-backed securities in coming months.

The result has been a widening yield spread between shorter-dated notes and longer-dated bonds, or higher premium investors charged to own longer-dated maturities.

http://www.nasdaq.com/article/longer-dated-treasury-bonds-higher-short-dated-notes-decline-20131122-00342

5
Comment #4 by Spice3d (anonymous) posted on
Spice3d
@Shorebeak: as it should be.

2
Comment #5 by Anonymous posted on
Anonymous
Nothing to get excited about.  It's probably the ongoing manipulation of the currency rates by the Federal Reserve to suit their own agenda.

3
Comment #6 by Anonymous posted on
Anonymous
It's official.  Penfed raised the 5 and 7 year CD rates to 3.00% effective December 1, 2013.

2