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Survey of the Best CD Rates for January 31, 2014

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Survey of the Best CD Rates for January 31, 2014

Long-term Treasury yields declined again this week. The yields rose some yesterday after the release of fourth quarter GDP which showed solid economic growth. However, continued worries over emerging markets pushed Treasury yields down for the week. For January, Treasury yields fell quite a bit. The 10-year Treasury yield fell from 3.00% to 2.67%.

With Treasury yields falling, PenFed’s December and January CD rates may prove to be very good deals. Unfortunately, they won’t be extended into February unless you have PenFed CDs maturing. The only good news is that PenFed is raising its 1-year CD rate to 1.16% APY which will be a rate leader for 1-year CDs. I’ve updated the table to include PenFed’s February rates. These won’t be official until Saturday when PenFed publishes them on its website. Update 2/1/14: The PenFed rates listed below are now published at penfed.org.

There were other signs that the rising CD rate trend may be ending. EverBank’s 4-year and 5-year CD rates went down a bit this week. Also, the top 5-year and 7-year brokered CD rates at Fidelity fell 5 basis points.

On a positive side, CIT Bank increased its 5-year CD rates by 15 basis points. Its Jumbo 5-year CD rate is now 2.20% APY. With the fall of PenFed’s rate, CIT Bank’s 5-year CD rate will now be the leader for nationally available CDs that don’t require a checking account relationship.

Local CD Deals

This was another quiet week for local CD rates. We may see more changes next week with the start of a new month.

Suntide Credit Union, located in the Corpus Christi, TX metro area, cut its CD rates this week. The rates are now less than what Gulf Coast FCU offers (another Corpus Christi credit union). Thus, I removed Suntide from the table.

NEFCU in Long Island New York cut the rate of its 20-month CD special. It fell 5 basis points to 1.20% APY.

On the positive side, I added two new local CDs to the table.

HomeBanc is back on the table with a new 3-month CD special. This new one has a 1.50% APY. As before, there’s a $75K maximum deposit. HomeBanc has branches in the Orlando and Tampa metro areas.

MountainOne Bank came out with a 13-month CD special that has a 1.30% APY. Maximum deposit is $130,000. The bank has branches in Massachusetts and Vermont.

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 31, 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
HomeBanc1.50% 3-month CDCentral and West Central FL
Gulf Coast Federal Credit Union1.10% 6-month CDCorpus Christi, TX metro
Doral Bank NY1.00% 6-month CDNYC

1-Year CD Rates

InstitutionRatesNotes
Pentagon Federal Credit Union1.16% 1-year CD (effective Feb 1st)account review
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
Gulf Coast Federal Credit Union1.50% 12-month CDCorpus Christi, TX metro
MountainOne Bank1.30% ($130K max) 13-month CDParts of MA and VT
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

InstitutionRatesNotes
Xceed Financial Credit Union1.50% 17-month CD
Barclays1.43% (2.15% 5-year CD closed after 18 months)see review & risks
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 Union1.45% ($250K) 1.35% ($100K) 1.25% ($1K) 18-month CD specialmany Iowa counties
Doral Bank NY1.25% 18-month CDNYC
NEFCU1.20% 20-month CDLong Island, NY

2-Year CD Rates

InstitutionRatesNotes
Barclays1.61% (2.15% 5-year CD closed after 2 years)see review & risks
Northrop Grumman Federal Credit Union1.40% ($40K) 1.25% ($2.5K) 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
Pentagon Federal Credit Union1.26% 2-year CD (effective Feb 1st)
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
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
Barclays1.79% (2.15% 5-year CD closed after 3 years)see review & risks
Connexus Credit Union1.75% 3-year CD w/active chk
Melrose Credit Union1.61% 3-year CD
Northern Bank & Trust Company1.60% 3-year CD
Navy Federal Credit Union1.55% ($100K) 1.50% ($20K) 3-year CDlimited membership
Pentagon Federal Credit Union1.51% 3-year CD (effective Feb 1st)
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
Jeanne D'Arc Credit Union1.65% 30-month CDparts of MA and NH
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
Navy Federal Credit Union2.05% ($100K) 2.00% ($20K) 4-year CDlimited membership
Barclays1.88% (2.15% 5-year CD closed after 4 years)see review & risks
Melrose Credit Union1.86% 4-year CD
Pentagon Federal Credit Union1.76% 4-year CD (effective Feb 1st)
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) 1.60% ($2K) 4-year CDFormerly MetLife
Communitywide Federal Credit Union1.70% 4-year CDaccount review
Barclays1.65% 4-year CD
Intervest National Bank1.65% 4-year CD
EverBank1.62% 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
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
Navy Federal Credit Union2.55% ($100K) 2.50% ($20K) 5-year CDlimited membership
Stanford Federal Credit Union2.27% ($100K) 5-year CD, requires chk w/ddaccount review
CIT Bank2.20% ($100K) 2.00% ($1K) 5-year CD
Barclays2.15% 5-year CD
iGObanking.com2.15% 5-year CD
EverBank2.12% 5-year CD
Melrose Credit Union2.12% 5-year CD
GE Capital Retail Bank2.05% ($100K) 2.00% ($25K) 5-year CDFormerly MetLife
State Farm Bank2.05% 5-year CD, 2.10% IRA
State Bank of India - New York2.05% 5-year CD
Pentagon Federal Credit Union2.02% 5-year CD (effective Feb 1st)
GE Capital Bank2.00% 5-year CD
Fidelity New Issue Brokered CD1.85% 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 GE Capital Bank
Navy Federal Credit Union3.10% ($100K) 3.05% ($20K) 7-year CDlimited membership
Navy Federal Credit Union2.75% ($100K) 2.70% ($20K) 6-year CDlimited membership
Fidelity New Issue Brokered CD2.55% 7-year non-callable CDissued by First Merchants Bank
Apple Federal Credit Union2.50% 10-year CD
Pentagon Federal Credit Union2.27% 7-year CD (effective Feb 1st)
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 Union2.55% ($100K) 2.45% ($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.


Related Pages: CD rates

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Comments
12 Comments.
Comment #1 by Anonymous posted on
Anonymous
Well at least stock investors are now suffering along with savers. After a record 2013, stocks had a horrible January. Emerging market stocks took a real beating. That PenFed 3.04% CD looks mighty good right now!

12
Comment #2 by Hoody posted on
Hoody
looks like Navy is holding with rates, for now.,  but 7 yrs is a bit long to lock up at 3%.

I talked to them yesterday, didn't get a clear cut answer on rates for Monday, but hinted that rates weren't changing, but who knows.

5
Comment #11 by Hoody posted on
Hoody
well after agonizing over this too much I decided to just go ahead and do a 7yr@3.10, but just one, I figured I can make as much on one 7yr @3.05 rate than putting it all in one 3yr @1.54 rate. that way I still can make another CD (joint) later and still be insured.

I did the calculations using the insurance site, and I can have as many as 5 accounts there. 1 POD to me, 1 POD to her, 2 joint CD's and one Joint Mny Mkt.

So since I really won't be needing what I put there for a while, I can let it ride.

I'm still pretty sure rates will be up in 2 years. but by than I'll have 2 more 1.2%ers comming due.

1
Comment #12 by lou posted on
lou
Hoody, I bought some of the 7-year CD's but I chose to buy several CD's that had a $20,000 minimum at 3.05% APY rather than the $100,000 minimum at 3.10%. I decided it made sense to give up the .05% in order to have the option to do partial withdrawals below $100,000.

2
Comment #3 by lou posted on
lou
Hoody, I agree - 7 years is a long time but I can't tell you how many posters in the last five years stayed short because they were convinced rates were imminently going higher.

Years ago, I decided that I am not a good rate forecaster (although I am sure rates will go up someday) and the best approach was to purchase the CD's with the highest rates even if it meant going out 7 years. I decided if I was going to use this technique, I would never agree to a EWP of more than one year and any language giving the bank or credit union the ability to prohibit an early withdrawal penalty. Consequently, I am earning around 4.3% on my money today.

12
Comment #4 by Anonymous posted on
Anonymous
I'm with you.  Accept I pay no attention to the EWPs.  35+ years of putting money into CDs and never thought about cashing a CD in before it's maturity date.  A "laddering" approach to locking money into CDs greatly reduces the need to cash any of them in early, should you be met with unforeseen expenses or other investment opportunities. 

4
Comment #5 by Anonymous posted on
Anonymous
And, you are avoiding management fees, fund fees and other hidden fees that eat at gains, especially over the long haul. That 4.3% will make you look like a genius when the next bear market takes hold.

3
Comment #6 by lou posted on
lou
To be honest, I could have done even better if I had totally adhered to this philosophy.

Somewhere in the 2008 time frame I purchased 4-year CD's from Key Direct for around 5.6%. A poster, Bozo, who hasn't posted in a long time, was advocating buying their 10-year 6% CD's with a 6 month EWP. I thought going out 10 years was insane and didn't take him up on the idea. He, OTOH, was smart enough to buy those CD's. Wish I had followed suit.

2
Comment #7 by Anonymous posted on
Anonymous
And I could have done way better putting it all in the stock market three years ago and then selling everything in the latter part of 2013.  Or even purchasing 30 treasures at 12% interest back about the year 2000.  Nobody knows what the future holds at any point in time.  It's anyone's guess. 

3
Comment #8 by lou posted on
lou
You make a good point but not sure about 12% 30-year treasuries in 2000. I think you're referring to 1980.

1
Comment #9 by Anonymous posted on
Anonymous
No, check your facts.

1