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Survey of the Best CD Rates for March 21, 2014

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Survey of the Best CD Rates for March 21, 2014

Treasury yields climbed this week after Fed Chairwoman Janet Yellen mentioned in her first FOMC press conference that rates could rise after only six months after tapering ends. That would put the first rate hike in early 2015. The market had been thinking that late 2015 would be more likely. This comment appeared to offset the change in the FOMC statement that removed the unemployment rate threshold in the rate hike decision. In my opinion, that statement change makes it more likely that the Fed will wait longer before it starts to hike rates.

As can be seen in the Fed news, it’s still not clear when rates will rise. There have been expectations that rate hikes by 2016 are very likely, and I think that has put upward pressure on long-term CD rates over the last several months. There is still some of that upward pressure, and that may be contributing to some of the recent CD rate increases.

There was only one noteworthy CD rate increase this week. That was at CIT Bank which increased its 5-year Jumbo CD rate from 2.25% To 2.30% APY. Its regular 5-year CD rate increased from 2.00% to 2.25% APY.

There were two rate cuts for the nationally available institutions that I track below. One was EverBank which had small cuts on its 5-year and 4-year CDs. The other was Communitywide Federal Credit Union which had a large rate cut on its 4-year CD.

The best nationally available long-term CD deal continues to be at Garden Savings Federal Credit Union which has a special 2.53% APY 5-year CD.

The best nationally available short-term CD deal continues to be at Xceed Financial Credit Union which has a 17-month CD special with a 1.50% APY.

Local CD Deals

For the local CD rate changes on the CDs that I track below, there were two noteworthy rate cuts. First, Beal Bank’s 12-month CD rate that it offers in South Florida fell from 1.11% to 1.01% APY. Second, the 30-month CD rate at Spokane Teachers Credit Union (STCU) fell from 1.76% to 1.51% APY.

On the positive side, I added three new local deals. One is a 3.00% APY 63-month CD special at Everett Co-operative Bank in Massachusetts. The other two are CDs from Gesa Credit Union in Washington State and Cornerstone Community Financial Credit Union in parts of Michigan and Ohio.

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 March 21, 2014

Under 1-Year CD Rates

InstitutionRatesNotes
EverBank1.10% checking/MMA intro 6-month rate ($100K/$50K max)account review
Garden Savings FCU1.00% 6-month CDeasy membership
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

Noteworthy Local Deals - Under 1-Year CDs

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
Melrose Credit Union1.10% 1-year CD
GE Capital Retail Bank1.10% ($2K min) 13-month CDCD special
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
CapitalSource Bank1.05% ($10K) 1-year CD special
AmTrustDirect1.05% 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 - 1-Year CDs

InstitutionRatesRegion
Generations Federal Credit Union 1.60% ($100K) 1.50% ($10K) 14-month CDSan Antonio, TX metro
Gulf Coast Federal Credit Union1.50% 12-month CDCorpus Christi, TX metro
South Florida Federal Credit Union1.26% 1-year CDSouth Florida
Security Service Federal Credit Union1.25% 13-month CDparts of Texas, lower rates in CO and UT
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
Gesa Credit Union1.14% 14-month CDWashington State
Cornerstone Community Financial Credit Union1.14% 14-month CDparts of MI and OH
HAB Bank1.10% 1-year CDNYC metro
Beal Bank1.10% 1-year CDSoutheast FL

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
Northern Bank & Trust Company1.25% 20-month CD
Ally Bank1.16% (1.60% 5-year CD closed after 18 months w/new ewp)see review & risks
GE Capital Retail Bank1.15% 15-month CD specialFormerly MetLife

Noteworthy Local Deals - 18-Month CDs

InstitutionRatesRegion
Gulf Coast Federal Credit Union1.65% 18-month CDCorpus Christi, TX metro
Doral Bank NY1.25% 18-month CDNYC
NEFCU1.20% 20-month CDLong Island, NY
Greater Nevada Credit Union1.20% 17-month IRA CDNorth Nevada
ABNB Federal Credit Union1.10% ($100K) 15-month CDNorfolk/Virginia Beach metro

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
Bank5 Connect1.20% 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 - 2-Year CDs

InstitutionRatesRegion
Gulf Coast Federal Credit Union1.75% 2-year CDCorpus Christi, TX metro
Greater Nevada Credit Union1.70% 27-month IRA CDNorth Nevada
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
Keesler Federal Credit Union1.50% ($100K) 1.40% ($1K) 2-year CDMississippi
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
Intervest National Bank1.45% 3-year CD
CIT Bank1.40% ($100K) 1.27% ($1K) 3-year CD
Bank5 Connect1.30% 3-year CDnot available to MA & RI residents

Noteworthy Local Deals - 3-Year CDs

InstitutionRatesRegion
Greater Nevada Credit Union2.20% 37-month IRA CDNorth Nevada
NavyArmy Community Credit Union2.05% ($100K) 1.75% ($1K) 3-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union2.02% 3-year CDCorpus Christi, TX metro
Transportation Federal Credit Union2.00% 3-year CDWashington DC metro
Keesler Federal Credit Union1.65% ($100K) 1.55% ($1K) 3-year bump-up CDMississippi
Gesa Credit Union1.64% 30-month CDWashington State
ABNB Federal Credit Union1.60% ($100K) 39-month CDNorfolk/Virginia Beach 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
Spokane Teachers Credit Union (STCU)1.51% ($25K) 30-month CDWA State & parts of ID
Florida Credit Union1.46% 3-year CDNorth/Central Florida

4-Year CD Rates

InstitutionRatesNotes
Garden Savings FCU2.02% 4-year CDeasy 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
Fort Knox Federal Credit Union1.85% 46-month CDConsumer-unfriendly history, see review
Navy Federal Credit Union1.80% ($100K) 1.76% ($20K) 4-year CDlimited membership
GE Capital Retail Bank1.80% ($100K) 1.70% ($2K) 4-year CDFormerly MetLife
CIT Bank1.80% ($100K) 1.70% ($1K) 4-year CD
Nationwide Bank1.72% ($100K) 1.67% ($500) 4-year CD
EverBank1.65% 4-year CD
San Diego County Credit Union1.65% ($90K) 4-year CD
Barclays1.65% 4-year CD
Pentagon Federal Credit Union1.51% 4-year CD
Communitywide Federal Credit Union1.50% 4-year CDaccount review
Ally Bank1.30% Raise-Your-Rate 4-year CD

Noteworthy Local Deals - 4-Year CDs

InstitutionRatesRegion
Bank of Utica2.25% 4-year CDCentral New York
Bayer Heritage Federal Credit Union2.15% 4-year CDparts of WV, OH & SC
Institution For Savings2.00% 4-year CDparts of MA
Keesler Federal Credit Union2.00% ($100K) 1.90% ($1K) 4-year CDMississippi
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
Garden Savings FCU2.53% 5-year CDeasy membership
CIT Bank2.30% ($100K) 2.25% ($1K) 5-year CD
Navy Federal Credit Union2.30% ($100K) 2.25% ($20K) 5-year CDlimited membership
Stanford Federal Credit Union2.27% ($100K) 5-year CD, requires chk w/ddaccount review
GE Capital Retail Bank2.25% ($100K) 2.20% ($2K) 4-year CDFormerly MetLife
Mountain America Credit Union2.20% 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 Bank2.05% 5-year CD
San Diego County Credit Union2.05% ($90K) 5-year CD
State Farm Bank2.05% 5-year CD, 2.10% IRA
State Bank of India - New York2.05% 5-year CD
Fidelity New Issue Brokered CD1.95% 5-year non-callable CDissued by GE Capital Retail Bk

Noteworthy Local Deals - 5-Year CDs

InstitutionRatesNotes
Everett Co-operative Bank3.00% 63-month CD w/checkingMassachusetts
ABNB Federal Credit Union2.60% ($100K) 63-month CDNorfolk/Virginia Beach metro
Bank of Utica2.50% 5-year CDCentral New York
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
Keesler Federal Credit Union2.30% ($100K) 2.20% ($1K) 5-year CDMississippi
BBVA Compass2.25% (w/relationship checking) 2.00% (w/o relation) 5-year CDparts of AL, AZ, CA, CO, FL, NM and TX
Security Service Federal Credit Union2.25% ($100K) 2.10% ($500) 5-year CDparts of Texas, lower rates in CO and UT
Credit Union West2.20% (IRA $50K) 1.95% (non-IRA $50K) 5-year CDPhoenix metro
MidFirst Direct2.15% 5-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Gesa Credit Union2.14% 5-year CDWashington State
Northwest Community Bank2.12% 5-year CDparts of Connecticut
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 Bk, GE Capital Retail Bk
Navy Federal Credit Union2.80% ($100K) 2.75% ($20K) 7-year CDlimited membership
Franklin Federal Savings Bank2.73% 7-year CDaccount review
Fidelity New Issue Brokered CD2.65% 7-year non-callable CDissued by GE Capital Retail Bk
Apple Federal Credit Union2.60% 10-year CD
Navy Federal Credit Union2.45% ($100K) 2.40% ($20K) 6-year CDlimited membership
Franklin Federal Savings Bank2.42% 6-year CDaccount review
Apple Federal Credit Union2.20% 7-year CD
GE Capital Bank2.10% 6-year CD
Intervest National Bank2.07% ($95K) 2.05% ($2.5K) 10-year CD

Noteworthy Local Deals - Over 5-year CDs

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
SACU2.90% ($90K) 2.85% ($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
Doral Bank NY2.70% 10-year CDNYC
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
Security Service Federal Credit Union2.40% ($100K) 2.25% ($500) 7-year CDparts of Texas, lower rates in CO and UT
SACU2.40% ($100K) 2.36% ($10K) 7-yearSan Antonio, TX
Wright-Patt Credit Union2.38% ($100K) 2.27% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
Gesa Credit Union2.34% 7-year CDWashington State
Columbia Bank2.30% 7-year IRA CDNew Jersey
Doral Bank NY2.30% 7-year CDNYC
Fifth Third Bank2.00% 6-year CD specialseveral eastern and midwestern states

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


  Tags: CD rates

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Comments
20 Comments.
Comment #1 by Anonymous posted on
Anonymous
Does this mean one should buy some longer term CDs now while there is still some upward pressure on interest rates?

2
Comment #4 by mustsavemore posted on
mustsavemore
I believe you first need to save money so you can buy the CDs.  Regardless of how long the term is, it doesn't matter if you don't have the funds.  Hope that helps!

6
Comment #5 by jib2424 posted on
jib2424
Im beginning to think the answer may be:  stay liquid until 5 year rates exceed 3%.  Then buy the 5 year CDs.

7
Comment #6 by keithsanfran posted on
keithsanfran
Using the site's "early withdrawal calculator," it appears that purchasing longer term CD's such as GE Capital's 5 year @ 2.25%, makes more sense than purchasing shorter term, 1, 2, 3 year CD's. The option for early withdrawal with only a 6 month penalty gives this 5 year CD a higher rate of return than almost any of the shorter term CD's being offered. Is this a correct assumption? As part of a part of a large number of CD in a ladder, and with the early withdrawal option, are there any reasons not to purchase a 5 year CD now?
Thank you,

 

2
Comment #7 by Anonymous posted on
Anonymous
I think I would just wait. By the time you finally decide what to do, rates will have gone up significantly anyway.

1
Comment #8 by Anonymous posted on
Anonymous
I think you make a very good point here.  Does this reasoning also apply to the 5 year CD from Garden Savings?

1
Comment #9 by Anonymous posted on
Anonymous
Isn't the best idea to just buy the highest-rate 5 year CDs one can now?

2
Comment #10 by jib2424 posted on
jib2424
At least that way you'll be getting a higher rate for some period of time.  No one knows what will happen in the future, rates could go up or down.  Isn't the best thing to do to just take the higher rate at the present?

1
Comment #12 by mustsavemore posted on
mustsavemore
Again, probably not, if you don't have the money

2
Comment #13 by Anonymous posted on
Anonymous
I don't know what you mean "if you don't have the money".  Please explain.

1
Comment #17 by mustsavemore posted on
mustsavemore
I don't see how you don't understand this.  Can't make it any more simpler than that.

2
Comment #18 by Anonymous posted on
Anonymous
Don't understand because I obviously have the money.  What are you trying to say?

1
Comment #11 by keithsanfran posted on
keithsanfran
Thanks for your comments. For some of my capital, I have been purchasing 5 year CD's at the highest rate I can find that also has the lowest early withdrawal penalties. In the event rates accelerate upwards, I like the insurance of knowing I can cash out the CD to buy another one... I posted here to see if anyone thought my strategy had flaws in it. It seems to make the most sense, and using the sites "early withdrawal calculator" is a great tool. Just hope I am not missing something along the way.

2
Comment #14 by Anonymous posted on
Anonymous
What do you think of the CIT 5 year?  The EWP is 12 months interest.

2
Comment #15 by keithsanfran posted on
keithsanfran
GE Capital's EWP is only 6 months and has about the same interest rate as CIT...

My concern is if a person does an early withdrawal will the bank have any restrictions on cashing out and then buying a CD at a higher rate. Wouldn't seem so since they are getting paid a the EWP... I'd just hate to find out the hard way.

3
Comment #16 by Anonymous posted on
Anonymous
This is my concern, too.  Could we do a survey of DA readers and see what their experiences have been?

2
Comment #19 by paoli2 posted on
paoli2
My banks keep us from cashing out on CDs and getting new ones at a higher rate with their banks by stating it has to be "new" money.  The only way around this is to do it a couple of days early, put it in your checking account and then return with a check which they have to take as "new" money.  We just can't cash out and give them back the same money they gave us and purchase another CD.  Stupid rule but they have to think they are getting "new" money. 

2
Comment #20 by Anonymous posted on
Anonymous
Thanks for this information.

2