Dedicated to Deposits: Deals, Data, and Discussion

Survey of the Best CD Rates for January 10, 2014

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The weaker-than-expected jobs data that was released today caused a big drop in Treasury yields. With news like this the Fed won’t be in any hurry to accelerate tapering,

Most banks kept their CD rates unchanged this week, but there were a few hopeful signs.

First, AmTrustDirect, the internet bank of New York Community Bank, came out with a 1.05% APY 1-year CD.

Ally Bank also increased its 1-year CD rate. That went up from 0.95% to 0.99%. That’s still a ways from the rate leaders, but it’s nice to see one of the major internet banks increase rates. It should also be noted that Ally Bank’s 1-year CD still has an early withdrawal penalty of 60 days of interest.

For long-term CD rates, PenFed remains the clear leader with a 3.04% APY for terms of 5 and 7 years.

Local CD Deals

Like the nationwide CDs, the local CD rates mostly remained the same this week.

It wasn’t a CD, but due to the rate guarantee, I had included Capital One’s savings account promotion in the table. It guaranteed a 1.00% APY for 1 year, and it was only available in Capital One’s market area. Unfortunately, the promotion ended this week.

I added one special CD from Fifth Third Bank. It’s offering a 2.00% APY 6-year CD, but it’s only available in Florida. The other states where Fifth Third has branches are offering a 5-year CD instead. That 5-year CD yield is only 1.75%, which is too low to be included in the table.

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.

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 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 January 10, 2014

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
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
Suntide Credit Union1.10% 6-month CDCorpus Christi, TX metro
Doral Bank NY1.00% 6-month CDNYC
Washington Federal1.00% 7-month CDAZ, ID, NM, NV, OR, TX, UT, WA

1-Year CD Rates

InstitutionRatesNotes
Pentagon Federal Credit Union1.11% (2.22% 4-year CD closed after 1 year)see review & risks
Melrose Credit Union1.10% 1-year CD
AloStar Bank of Commerce1.10% 1-year CD
Connexus Credit Union1.10% 1-year CDw/active chk
CIT Bank1.05% ($25K min)add-on & bump-up 1-year CD
AmTrustDirect1.05% 1-year CD
DollarSavingsDirect1.05% 1-year CD
GE Capital Retail Bank1.05% ($25K min) 1-year CDFormerly MetLife
Ally Bank0.99% 1-year CD60-day early withdrawal penalty

Noteworthy Local Deals

InstitutionRatesRegion
Suntide Credit Union1.50% 1-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.50% 12-month CDCorpus Christi, TX metro
South Florida Federal Credit Union1.26% 1-year CDSouth Florida
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
HAB Bank1.10% 1-year CDNYC metro

18-month CD Rates

Pentagon Federal Credit Union1.48% (2.22% 4-year CD closed after 18 months)see review & risks
Xceed Financial Credit Union1.25% 19-month CD
Ally Bank1.16% (1.60% 5-year CD closed after 18 months w/new ewp)see review & risks
AloStar Bank of Commerce1.15% 18-month CD
GE Capital Retail Bank1.15% 15-month CD specialFormerly MetLife

Noteworthy Local Deals

InstitutionRatesRegion
Gulf Coast Federal Credit Union1.65% 18-month CDCorpus Christi, TX metro
University of Iowa Community Credit Union1.25% 18-month CD specialmany Iowa counties
NEFCU1.25% 20-month CDLong Island, NY
Doral Bank NY1.25% 18-month CDNYC

2-Year CD Rates

InstitutionRatesNotes
Pentagon Federal Credit Union1.67% (2.22% 4-year CD closed after 2 years)see review & risks
Pentagon Federal Credit Union1.52% (3.04% 7/5-year CD closed after 2 years)see review & risks
Barclays1.50% (2.00% 5-year CD closed after 2 years)see review & risks
Pentagon Federal Credit Union1.41% 2-year CD
Melrose Credit Union1.36% 2-year CD
Ally Bank1.27% (1.60% 5-year CD closed after 2 years w/new ewp)see review & risks
Connexus Credit Union1.30% 2-year CDw/active chk
AloStar Bank of Commerce1.25% 2-year CD
Bank5 Connect1.25% add-on 2-year CDnot available to MA & RI residents
CIT Bank1.20% ($25K min) add-on & bump-up 2-year CD

Noteworthy Local Deals

InstitutionRatesRegion
Suntide Credit Union1.90% 2-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.75% 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 Union2.03% (3.04% 7/5-year CD closed after 3 years)see review & risks
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 Union1.61% 3-year CD
Intervest National Bank1.45% 3-year CD
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
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 Union2.28% (3.04% 7/5-year CD closed after 4 years)see review & risks
Pentagon Federal Credit Union2.22% 4-year CD
Melrose Credit Union1.86% 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
GE Capital Retail Bank1.70% ($100K) 1.50% ($2K) 4-year CDFormerly MetLife
Communitywide Federal Credit Union1.70% 4-year CDaccount review
EverBank1.68% 4-year CD
Barclays1.65% 4-year CD
Intervest National Bank1.65% 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
HarborOne Bank2.00% 4-year CDNew England
Institution For Savings2.00% 4-year CDparts of MA
Bayer Heritage Federal Credit Union1.89% 4-year CDparts of WV, OH & SC
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
Pentagon Federal Credit Union3.04% 5-year CD
Pentagon Federal Credit Union2.43% (3.04% 7-year CD closed after 5 years)see review & risks
Stanford Federal Credit Union2.27% ($100K) 5-year CD, requires chk w/ddaccount review
EverBank2.16% 5-year CD
iGObanking.com2.15% 5-year CD
Melrose Credit Union2.12% 5-year 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
GE Capital Bank2.00% 5-year CD
Barclays2.00% 5-year CD
Fidelity New Issue Brokered CD1.90% 5-year non-callable CDissued by GE Capital Retail Bank

Noteworthy Local Deals

InstitutionRatesNotes
Credit Union West3.20% (IRA $50K) 2.95% (non-IRA $50K) 5-year CDPhoenix metro
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
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
Bayer Heritage Federal Credit Union2.15% 5-year CDparts of WV, OH & SC
Dime Savings Bank2.10% 5-year CDNew York
Department of Commerce FCU2.10% 5-year CDWashington DC

Over 5-Year CD Rates

InstitutionRatesRegion
Fidelity New Issue Brokered CD3.30% 10-year non-callable CDissued by CIT Bank and GE Capital Retail Bank
Pentagon Federal Credit Union3.04% 7-year CD
Fidelity New Issue Brokered CD2.75% 7-year non-callable CDissued by CIT 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

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
SACU2.80% ($90K) 2.75% ($10K) 10-year CDSan Antonio, TX
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
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
Wright-Patt Credit Union2.51% ($100K) 2.41% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
Hutchinson Credit Union2.50% ($250K) 2.40% ($100K) 2.30% ($25K) 6-year CDKansas
Franklin Federal Savings Bank2.42% 6-year CDRichmond, VA metro
SACU2.30% ($100K) 2.25% ($10K) 7-yearSan Antonio, TX
Fifth Third Bank2.00% 6-year CD specialFlorida

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


  Tags: CD rates

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Comments
9 Comments.
Comment #2 by Maidul posted on
Maidul
why most banks kept their CD rates unchanged this week.

1
Comment #3 by Robert (anonymous) posted on
Robert
re: #2. Greed

8
Comment #4 by gregk posted on
gregk
Identical with what motivates ourselves.

2
Comment #5 by Anonymous posted on
Anonymous
gregk, speak for yourself!

You have NO idea what motivates all of us.

2
Comment #6 by gregk posted on
gregk
What does motivate you when it comes to investment products?  I assume (all other things being equal) you will choose a higher yielding deposit account over a lower one, - that you wish to maximize your gain (a behavior otherwise known as greed).  Am I mistaken?

1
Comment #7 by Anonymous posted on
Anonymous
It's smart business. Banks "buy" cash by paying interest and "sell" cash by charging interest. Discounting the intervention of the FED, it's all rather simple. For example, a bank can buy 100K (CD's for instance) by paying 1% interest then loan the 100K to someone else (e.g. a home buyer) at 4% interest. At the end of a perfect year the bank receives $4,000 from the home buyer, pays $1000 to the CD owner and uses the remaining $3000 to fund operations, pay bad loans, etc. The interest rate difference is called the spread and banks were once thrilled to work with a 2-3% spread. At the time, however, mortgage defaults were almost unheard of and people regularly paid their bills...all of them.

The $250 Ally teaser is a sucker's play and not worth the effort.

3
Comment #8 by gregk posted on
gregk
It seems many DA investors believe they are due a certain minimum return on their savings, and that the Fed commits an act of sacrilege when it takes any action that endangers this, the rest of the economy be ****ed.  It evokes tremendous resentment and even hostility in the hearts of some folks to see their "guaranteed" income reduced, - though when the Fed intervenes in the other direction they are all in favor.

2
Comment #9 by lou posted on
lou
I am not one of those DA investors. I have been saying all along that I want the market to determine long-term rates. For the last five years between the various QE programs that hasn't happened. We can argue about the benefits and disadvantages of the Fed intervention, but nonetheless they are not allowing interest rates to rise to the level set by the market.  

I might also add if we had different fiscal and regulatory policies at the federal level we most likely would have greater economic activity in this country, which would also have an impact on interest rates.

8