Dedicated to Deposits: Deals, Data, and Discussion

Survey of the Best CD Rates for February 7, 2014

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Treasury yields declined today due to a disappointing January jobs report. The decline would have been larger but the significance of the jobs report is not clear since cold winter weather may be the cause of the weakness. There were also some positive signs in the report including improving labor force participation rate and unemployment rate. The report is unlikely to change the Fed’s tapering policy.

At the start of the year it appeared that we were finally heading into a period of strong economic growth. The economy may be growing, but it’s not strong growth. If that continues, the trend of rising long-term rates may be over for awhile.

Banks and credit unions appear to be trying to decide how to react to this economic news. We’re still not seeing much movement in CD rates. There were just a few rate changes this week. Most of those were rate cuts.

EverBank reduced the rates of its 4- and 5-year CD. EverBank’s 5-year CD yield fell from 2.12% to 2.05%.

Andrews Federal Credit Union cut its CD rates. Its most competitive had been its 4-year CD. The yield of that CD fell from 1.71% to 1.56%.

Communitywide Federal Credit Union ended its special 6-month CD. That had the exceptional yield of 2.00% for a maximum balance of $50K.

On a positive note, I added San Diego County Credit Union which increased its 4-year and 5-year CD rates to very competitive levels. Its Jumbo 4-year and 5-year CD yields are 1.80% and 2.05%. San Diego County Credit Union is another "easy membership" credit union since it anyone can join via an association membership.

Also on a positive note, I just noticed a new CD special at NASA Federal Credit Union. It has a 2.00% APY for a 49-month term. NASA Federal Credit Union is another "easy membership" credit union. I'll have more on this CD on Monday.

Local CD Deals

Like the nationally available CDs, there were just a few rate changes for the local CDs, and they were rate cuts.

Credit Union West in Arizona slashed its 5-year CD and IRA rates by one full percentage point. It had been the rate leader with a 3.20% IRA and a 2.95% CD. The new yields of 2.20% and 1.95% are still competitive, but they’re no longer near the top.

There were also rate cuts on the long-term CDs at MidFirst Bank and Wright-Patt Credit Union. MidFirst Bank has branches in Arizona and Oklahoma. Wright-Patt is located in Ohio.

There was also one positive note for the local CDs. I added one new CD. It’s a special 1.15% APY 11-month CD at United Legacy Bank which has branches in the Orlando metro area.

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 February 7, 2014

Under 1-Year CD Rates

InstitutionRatesNotes
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
United Legacy Bank1.15% 11-month CD specialCentral FL
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
NASA Federal Credit Union2.00% 49-month CD special
Barclays1.88% (2.15% 5-year CD closed after 4 years)see review & risks
Melrose Credit Union1.86% 4-year CD
San Diego County Credit Union1.80% ($90K) 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
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
EverBank1.56% 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
Melrose Credit Union2.12% 5-year CD
San Diego County Credit Union2.05% ($90K) 5-year CD
EverBank2.05% 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 CD1.95% 5-year non-callable CDissued by GE Capital Retail Bank

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
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
Credit Union West2.20% (IRA $50K) 1.95% (non-IRA $50K) 5-year CDPhoenix metro
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 CD2.65% 7-year non-callable CDissued by CIT 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 Bank2.50% 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
SACU2.30% ($100K) 2.25% ($10K) 7-yearSan Antonio, TX
Wright-Patt Credit Union2.28% ($100K) 2.18% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
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
5 comments.
Comment #1 by Anonymous posted on
Anonymous
The economy is not growing, the unemployment is not falling, the deficits are rising, yet the FEDs continue to lie about everything. Do not assume or take for granted anything you hear from this lying administration and manipulated numbers.

5
Comment #2 by gregk posted on
gregk
What does this comment (variations of which turn up everywhere) have to do with the topic?

Fine that you despise Obama and hold him responsible for all the country's ill's, - but why here in response to a column about CD rates?

6
Comment #5 by Anonymous posted on
Anonymous
You answered your own question.  Obama's policies have directly impacted the CD rates.

5
Comment #3 by Hoody posted on
Hoody
its kinda why I decided to just bite and take out at least one of those 3.1%ers at NFCU,  Things are still hard to figure. Who knows if things get too bad the banks/CU's might just ask you to close a CD with 3% without any penalty just to get rid of the debt lolol.

I see if I closed the 7yr at 3yrs, I'd still make 2.07%, that's better than the .75% 30 mo at bb&t, and even the 1.55 3yr at navy. I assume that means 3yrs plus a day, and loose a yr interest to actually only make 2yrs int since its a 12 mo penalty. I'm not clear on that part.

1
Comment #4 by gregk posted on
gregk
Yes, the crucial calculation (for biting on 3% long-term CD's) is always how long these abnormally low rates will continue in relation to potential EWP and reinvestment down the road, - and for me the justifying prediction is always that it's likely to be at least 2 more years, which under the scenario would still leave me ahead given the current liquid (or much shorter-term) alternatives.  And if rates don't budge for the forseeable future (and even these 3% 5&7 year offers disappear) we've locked in a maximum return over the period.  I feel comfortable now with the commitment I made (Penfed's 5 year).

3
Comment #12 by Hoody posted on
Hoody
You know I had another thought, I wonder if anybody has an answer.

They say you get your principal back if you close early, OK, what if you pull your monthly interest out every month, and by the end of the 3rd year all that is there is under a months interest, and you close it due to high rates. How would they handle that?

I mean if you already pulled out most of your money, and only the CD with less than a months interest is there, and they say you can only loose the interesr, how can they get a full years interest out of you?

Just wonderin.... 

1
Comment #14 by gregk posted on
gregk
In that case, of course, they'd reduce the redeemable balance of the CD by the amount of interest you've withdrawn, rather than ask you to make a return payment.  It's still in substance a penalty of accumulated interest and not a reduction of the original investment, but for the sake of efficiency the penalty would be assessed against the amount still on deposit.

3
Comment #6 by Anonymous posted on
Anonymous
How can the bank/cu force you to close a 3% CD because they made a bad business decision? 

1
Comment #7 by hoho (anonymous) posted on
hoho
The only way that could happen is if the institution goes under. Then the CD is closed.

3
Comment #8 by gregk posted on
gregk
#5 In the sense that the explanation for anything is everything, - yes, Obama's policies have influenced CD rates, just as all things happening in the country and the world have in some measure.

But do you have to use virtually every topic raised on DA as occasion to make the very same indictment?  Your general views are well known by now. 

I know homeowners who otherwise revile Obama very delighted over the low rate refi's they've been able to lock in during the tenure of his administration.  If you're right and Obama can be held directly responsible for such good fortune, I suppose there might be cause to congratulate rather than criticize him  Low interest rates have benefited many, even if not "us".

Probably better to pick a more universally "bad" outcome of Obama's policies than low interest rates with which to make your case. 

In regards to Hoody's "mock" fears his 3% CD's might be closed before maturity under some scenario, - they were clearly unserious if you took note of the "lol" after his comment. 

4
Comment #9 by gregk posted on
gregk
Besides that, I just don't believe the DA blog is intended to be a politically oriented one (at least in any directly partisan way).  You never read Ken railing out for or against this or that politician and/or policy prescription, but rather he lays out more or less dispassionately week to week the enviroment we find ourselves in relative to savings choices, and documents the available options.  From my perspective things would be best here if we all left out all the rants against Obama, the Fed, Democrats, Republicans, and whoever else, and stuck to offering experiences, insights, and information about the matter at hand. 

11
Comment #10 by Anonymous posted on
Anonymous
You need to get off your soap box.  I'm not the only one commenting about your forbiddend list.

2
Comment #11 by Anonymous posted on
Anonymous
Then why are you, yourself, dwelling on politics so much while chastising others?

Leave it to Ken or other official moderators of this site to decide what should or shouldn't be posted.

2
Comment #13 by gregk posted on
gregk
Well, of course I leave it to the moderators (and wasn't arguing for your stuff being deleted or prohibited in any case).  I'm just offering my opinion (which a few others seem to agree with) and leave it to you to respond and post as you wish.  Sometimes you even hit on something relevant.  I just wish it were more times, he-he.

 

6
Comment #16 by paoli2 posted on
paoli2
#13  How can we discuss monetary policy and the low interest rates without bringing the FED into the conversation?  I can understand not making DA too political but the Fed is in a category which definitely pertains to our savings.  I don't think it should be off-topic.

1
Comment #17 by gregk posted on
gregk
Nor do I think the Fed should be off-topic.  What I suggested is that certain apparently aggrieved posters here desist from their habitual "rants" that this or that person or group is "destroying" the economy (even the country), or responsible for everything "bad" that is happening, - and other such extreme statements and de-facto proclamations that don't make any meaningful argument one can consider and discuss.  To try and assess in a measured and specific way the impact of Fed actions (for example) on the economy in general and deposit accounts in particular, - and even to question or attack such actions from this or that perspective is not what I say detracts from the quality of the blog.   It's the dogmatic sermonizing, the raging accusations, the vulgar whining one can always count on from certain "anonymous" members here that start to become annoying after one reads them enough times.  But, after all, each of us is confined to our own little box here and can't wreak too much havoc on the order of things.  Maybe the stupid venting I refer to serves some purpose for these types and should be accepted as inevitable in almost any internet venue.  You, Paoli, at least bring a bit of personalized human drama and homespun style to your own foibles, rants, and complaints here, that one findshard not to be humored by amidst all the exasperation they can evoke.  If only the more abrasive and apocalyptic characters I have in mind here could now and then show some of the same vulnerability and self-doubt, it would leaven things for the better.

3