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Survey of the Best CD Rates for March 28, 2014

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Survey of the Best CD Rates for March 28, 2014

Treasury yields didn’t change much this week. We might see more changes next week after some important economic reports come out such as the March jobs report on Friday. These reports may show that the recent economic weakness was due to weather issues. If that happens, expectation will grow that the Fed will hike rates in the first half of 2015 as Fed Chairwoman Yellen suggested on the 19th, and that should push up Treasury yields and then CD rates.

Fed Chairwoman Yellen’s comments may have influenced a few banks and credit unions. EverBank and Melrose Credit Union had some significant rate increases on their long-term CD this week. Both of their 5-year CDs now have a 2.27% APY. Hopefully, we’ll see some banks and credit unions follow with rate hikes next week as April begins.

Not all CD rate changes when March ends will be good for savers. This is especially the case for CD specials such as those offered by Garden Savings Federal Credit Union. This credit union’s special 2.53% APY 5-year CD is scheduled to end next Monday.

With the chance growing of higher rates in 2015, long-term CDs will become less attractive. However, it makes sense to consider the early withdrawal penalties. In this blog post, I compared the long-term CDs from five banks and credit unions. Using our Early Withdrawal Penalty Calculator, I computed the effective yields before maturity. This factors in the early withdrawal penalties. As can be seen in the calculator table, Garden Savings FCU’s 5-year CD is a very good deal even when it’s closed early.

There was just one new bank to the nationally available CDs tables. I added two CDs from BBVA Compass. One is a 2.10% APY 5-year CD and the other is a 1.35% APY 29-month CD. These rates are for preferred clients who have the required checking relationship. Without the relationship, the rates are 10 bps lower (it used to be a 25-bps rate bump). BBVA Compass just recently started to allow people who live outside BBVA’s market areas to apply online or by phone for CDs. Previously, BBVA Compass only allowed people who live in its market areas to apply for their CDs.

Local CD Deals

For the local CD rate changes on the CDs that I track below, there were just three noteworthy rate changes. Two were rate hikes, and one was a rate cut.

Dollar Bank with branches in Pittsburgh and Cleveland raised its 10-year CD yield from 2.75% to 3.00%.

Wright-Patt Credit Union in Ohio raised its 6-year Jumbo CD yield from 2.38% to 2.52%.

MidFirst Bank with branches in Arizona and Oklahoma reduced the yield of its 7-year CD from 2.50% to 2.40%.

I added two local CD deals to the tables.

People’s Alliance Federal Credit Union with branches in New York City and Miami is offering a competitive 28-month CD with a 1.35% APY.

South Jersey Federal Credit Union with branches in parts of New Jersey is offering an 18-month CD special with a 1.26% APY.

Hopefully, we’ll see more rate hikes and competitive CD specials as April begins next week.

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 28, 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 Union1.15% 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 Bank1.01% 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
South Jersey Federal Credit Union1.26% 18-month CDparts of New Jersey
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
Melrose Credit Union1.41% 2-year CD
Northrop Grumman Federal Credit Union1.40% ($40K) 1.25% ($2.5K) 2-year CD
BBVA Compass1.35% (w/relationship checking) 1.25% (w/o relation) 29-month CDnow nationally available
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
People's Alliance Federal Credit Union1.35% 28-month CDNYC and Miami
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 Union1.66% 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
Melrose Credit Union2.02% 4-year CD
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
Fort Knox Federal Credit Union1.85% 46-month CDConsumer-unfriendly history, see review
EverBank1.81% 4-year CD
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
San Diego County Credit Union1.65% ($90K) 4-year CD
Barclays1.65% 4-year CD
Pentagon Federal Credit Union1.51% 4-year CD
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
Melrose Credit Union2.27% 5-year CD
EverBank2.27% 5-year CD
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
BBVA Compass2.10% (w/relationship checking) 2.00% (w/o relation) 5-year CDnow nationally available
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 CD1.90% 5-year non-callable CDissued by GE Capital Retail Bk and others

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
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
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 CD2.60% 7-year non-callable CDissued by Discover Bank
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
Dollar Bank3.00% 10-year CDPittsburgh and Cleveland
SACU2.90% ($90K) 2.85% ($10K) 10-year CDSan Antonio, TX
MidFirst Direct2.75% 7-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Doral Bank NY2.70% 10-year CDNYC
Wright-Patt Credit Union2.52% ($100K) 2.42% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
Frick Tri-County Federal Credit Union2.50% 8-year CDparts of Western PA
Hutchinson Credit Union2.50% ($250K) 2.40% ($100K) 2.30% ($25K) 6-year CDKansas
MidFirst Bank2.40% 7-year CDAZ and OK
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
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
8 Comments.
Comment #1 by Anonymous posted on
Anonymous
Is the CIT 5 year CD Jumbo paying 2.30% a good deal?

1
Comment #3 by Anonymous posted on
Anonymous
I don't think so. EWP for 5-year CD is 12-month interest, especially it's a jumbo CD.

2
Comment #4 by Anonymous posted on
Anonymous
Is the 5 year CD at Melrose FCU paying 2.27% a good deal?

1
Comment #6 by Anonymous posted on
Anonymous
Melrose CU CD disclosure: "18-60 months term: Forfeiture of the first 180 days dividend and a reduction to the Share Savings Rate at the time of purchase."

They do offer decent CD rates. However, I want to avoid their long-term CDs because of the harsh EWP. Their clause makes me feel that I have an ethic problem if I make an early withdrawal. So I purchased only short- and mid-term CDs from them.

2
Comment #2 by Anonymous posted on
Anonymous
For the regular CDs, the 5-year CD yield increased from 2.00% to 2.25%, and the 4-year CD yield increased from 1.65% to 1.70%. These have a $1,000 minimum deposit. This is a nice change for those who don’t have $100K to deposit at CIT Bank. You can get a 2.25% APY 5-year CD with just a $1K deposit.

3
Comment #5 by Anonymous posted on
Anonymous
I dont recommend using EWP to increase yield.  If you play the system, the banks will raise the penalty and hurt everyone.

7
Comment #7 by Robert (anonymous) posted on
Robert
I was wondering if someone (Ken?) was going to comment on what an Ally IPO would mean for interest rates on their products. Up? Down? The same?  Ally used to be my favorite bank, but they have not kept up lately with other online banks who have raised rates.  
http://www.foxbusiness.com/industries/2014/03/27/ally-financial-eyes-31b-ipo/

3
Comment #8 by Shorebreak posted on
Shorebreak
Ally Finance is the loan arm. It's not applicable to Ally Bank.

4