Dedicated to Deposits: Deals, Data, and Discussion

Survey of the Best CD Rates for May 3, 2014

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The better-than-expected jobs report that came out on Friday increases the chance that we’ll see the Fed hike rates sometime in 2015. As usual, it’s no slam dunk in positive news. Even though the unemployment rate declined from 6.7% to 6.3%, the labor force participation rate dropped to its lowest point in decades. That may have been a factor in the drop in Treasury yields this week

CD rate changes were mixed this week. There were a few rate hikes. Most noteworthy was the higher 5-year CD rate at GE Capital Retail Bank. Its 5-year CD APY for a $25K minimum deposit increased from 2.25% to 2.30%. A nice feature of this CD is a mild early withdrawal penalty of 6 months of interest (see blog post).

Another nice change was higher rates at VirtualBank. Since the time in 2011 when VirtualBank’s parent failed and was acquired with help from the FDIC, the internet bank hasn’t offered competitive rates. I’m glad to see that has finally changed. Its 5-year CD APY is now 2.31% which puts it on top for the highest 5-year CD rate that’s nationally available. It also has a mild early withdrawal penalty of 6 months of interest, which makes this even a better deal. In the table below I added the effective yields of this 5-year CD when closed early. These numbers are based on our CD Early Withdrawal Penalty Calculator.

In addition to VirtualBank CDs, I added two special CDs from USAlliance Federal Credit Union, an all-access credit union. One of the CDs has a 1.21% APY for a 13-month term, and the other has a 1.61% APY for a 35-month term.

Not all was good news. EverBank lowered its 5-year CD APY from 2.27% to 2.23%.

Navy Federal Credit Union lowered all of its long-term CD rates. Its Jumbo 5-year CD APY fell from 2.30% to 2.15%, and its Jumbo 7-year CD APY fell from 2.80% to 2.55%.

Local CD Deals

It’s common for credit unions to change their CD rates at the start of each month, and that’s what happened this week at three credit unions that I track below. Rates were cut at Gulf Coast Federal Credit Union in Southeast Texas; Bayer Heritage Federal Credit Union which has branches in parts of West Virginia, Ohio and South Carolina; and Financial Center Federal Credit Union in Indiana.

Due to the rate cuts at Gulf Coast FCU, I decided to add the 6-month and 1-year CDs at NavyArmy Community Credit Union. This credit union has a similar field of membership as Gulf Coast covering the Corpus Christi metro area. NavyArmy Community’s 6-month and 1-year CD rates are now the rate leaders for this 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 May 3, 2014

Under 1-Year CD Rates

InstitutionRatesNotes
EverBank1.10% checking/MMA intro 6-month rate ($100K/$50K max)account review
Connexus Credit Union1.00% 6-month CDw/active chk
Doral Direct0.91% 9-month CDaccount review
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
NavyArmy Community Credit Union1.20% ($100K) 1.10% ($1K) 6-month CDCorpus Christi, TX metro
Flagstar Bank1.05% savings account w/6-mo rate guaranteeMichigan
Gulf Coast Federal Credit Union1.00% 6-month CDCorpus Christi, TX metro
Doral Bank NY1.00% 6-month CDNYC

1-Year CD Rates

InstitutionRatesNotes
Quorum Federal Credit Union1.25% 13-month CD
USAlliance Federal Credit Union1.21% 13-month CD
VirtualBank1.16% ( 2.31% 5-yr CD closed after 1 year)
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
VirtualBank1.07% 1-year CD
EverBank1.06% 1-year CD
CIT Bank1.05% ($25K min)add-on & bump-up 1-year CD
GE Capital Bank1.05% 1-year CD
AmTrustDirect1.05% 1-year CD
GE Capital Retail Bank1.05% ($25K min) 1-year CDFormerly MetLife

Noteworthy Local Deals - 1-Year CDs

InstitutionRatesRegion
NavyArmy Community Credit Union1.45% ($100K) 1.15% ($1K) 1-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.30% 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
Cornerstone Community Financial Credit Union1.14% 14-month CDparts of MI and OH
HAB Bank1.10% 1-year CDNYC metro

18-month CD Rates

InstitutionRatesNotes
Xceed Financial Credit Union1.50% 17-month CD
VirtualBank1.54% ( 2.31% 5-yr CD closed after 18 months)
Barclays1.50% (2.25% 5-year CD closed after 18 months)see review & risks
BBVA Compass1.25% (w/relationship checking) 1.15% (w/o relation) 18-month CDnow nationally available
Northern Bank & Trust Company1.25% 20-month CD
EverBank1.18% 18-month CD
VirtualBank1.17% 18-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 Union1.45% 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
Greater Nevada Credit Union1.20% 17-month CDNorth Nevada
ABNB Federal Credit Union1.10% ($100K) 15-month CDNorfolk/Virginia Beach metro

2-Year CD Rates

InstitutionRatesNotes
VirtualBank1.73% ( 2.31% 5-yr CD closed after 2 years)
Barclays1.69% (2.25% 5-year CD closed after 2 years)see review & risks
Third Federal1.50% 29-month CDpromotional
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
Salem Five Direct1.25% 2-year CD
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
Greater Nevada Credit Union1.70% 27-month CDNorth Nevada
NavyArmy Community Credit Union1.70% ($100K) 1.40% ($1K) 2-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.55% 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
VirtualBank1.93% ( 2.31% 5-yr CD closed after 3 years)
Barclays1.88% (2.25% 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
USAlliance Federal Credit Union1.61% 35-month CD
Northern Bank & Trust Company1.60% 3-year CD
America's Credit Union1.50% 3-year CDpromotional
CIT Bank1.40% ($100K) 1.27% ($1K) 3-year CD
Navy Federal Credit Union1.40% ($100K) 1.35% ($20K) 3-year CDlimited membership

Noteworthy Local Deals - 3-Year CDs

InstitutionRatesRegion
Greater Nevada Credit Union2.20% 37-month 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
Patriot Federal Credit Union2.00% 3-year and 30-mo CD specialparts of PA and MD
Liberty Bank2.00% 3-year CD specialConnecticut
Transportation Federal Credit Union2.00% 3-year CDWashington DC metro
Keesler Federal Credit Union1.65% ($100K) 1.55% ($1K) 3-year bump-up CDMississippi
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
Spokane Teachers Credit Union (STCU)1.51% ($25K) 30-month CDWA State & parts of ID

4-Year CD Rates

InstitutionRatesNotes
Fort Knox Federal Credit Union2.05% 46-month CDConsumer-unfriendly history, see review
Melrose Credit Union2.02% 4-year CD
VirtualBank2.02% ( 2.31% 5-yr CD closed after 4 years)
NASA Federal Credit Union2.00% 49-month CD special
Barclays1.97% (2.25% 5-year CD closed after 4 years)see review & risks
America's Credit Union1.80% 4-year CDpromotional
CIT Bank1.80% ($100K) 1.70% ($1K) 4-year CD
VirtualBank1.79% 4-year CD
Nationwide Bank1.79% ($100K) 1.74% ($500) 4-year CD
EverBank1.78% 4-year CD
GE Capital Retail Bank1.75% ($25K) 1.70% ($2K) 4-year CDFormerly MetLife
Barclays1.70% 4-year CD
Navy Federal Credit Union1.65% ($100K) 1.60% ($20K) 4-year CDlimited membership
Ally Bank1.30% Raise-Your-Rate 4-year CD

Noteworthy Local Deals - 4-Year CDs

InstitutionRatesRegion
Patriot Federal Credit Union2.50% 4-year step-up CD specialparts of PA and MD
Liberty Bank2.25% 4-year CD specialConnecticut
Bank of Utica2.25% 4-year CDCentral New York
Bayer Heritage Federal Credit Union2.02% 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
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
Fifth Third Bank1.50% 4-year CD specialseveral eastern and midwestern states

5-Year CD Rates

InstitutionRatesNotes
VirtualBank2.31% 5-year CD
GE Capital Retail Bank2.30% ($25K) 2.25% ($2K) 4-year CDFormerly MetLife
CIT Bank2.30% ($100K) 2.25% ($1K) 5-year CD
Melrose Credit Union2.27% 5-year CD
Barclays2.25% 5-year CD
EverBank2.23% 5-year CD
iGObanking.com2.15% 5-year CD
Navy Federal Credit Union2.15% ($100K) 2.10% ($20K) 5-year CDlimited membership
GE Capital Bank2.10% 5-year CD
BBVA Compass2.10% (w/relationship checking) 2.00% (w/o relation) 5-year CDnow nationally available
Fidelity New Issue Brokered CD2.00% 5-year non-callable CDissued by GE Capital Retail Bk
Discover Bank1.95% 5-year CD

Noteworthy Local Deals - 5-Year CDs

InstitutionRatesNotes
Patriot Federal Credit Union3.00% 5-year CD specialparts of PA and MD
ABNB Federal Credit Union2.60% ($100K) 63-month CDNorfolk/Virginia Beach metro
Liberty Bank2.50% 5-year CD specialConnecticut
Bank of Utica2.50% 5-year CDCentral New York
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
Bayer Heritage Federal Credit Union2.27% 5-year CDparts of WV, OH & SC

Over 5-Year CD Rates

InstitutionRatesRegion
Fidelity New Issue Brokered CD3.30% 10-year non-callable CDissued by GE Capital Retail Bk
Franklin Federal Savings Bank2.73% 7-year CDaccount review
Fidelity New Issue Brokered CD2.70% 7-year non-callable CDissued by GE Capital Retail Bk
Apple Federal Credit Union2.60% 10-year CD
Navy Federal Credit Union2.55% ($100K) 2.50% ($20K) 7-year CDlimited membership
Franklin Federal Savings Bank2.42% 6-year CDaccount review
Navy Federal Credit Union2.30% ($100K) 2.25% ($20K) 6-year CDlimited membership
Discover Bank2.25% 10-year CD
Apple Federal Credit Union2.20% 7-year CD
GE Capital Bank2.15% 6-year CD
Discover Bank2.05% 7-year CD

Noteworthy Local Deals - Over 5-year CDs

InstitutionRatesRegion
Hutchinson Credit Union3.15% ($250K) 3.10% ($100K) 3.05% ($25K) 10-year CDKansas
MidFirst Bank3.00% 10-year CDAZ and OK
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
PeoplesChoice Credit Union2.78% 10-year CDYork and Cumberland Counties of Maine
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
Hutchinson Credit Union2.50% ($250K) 2.40% ($100K) 2.30% ($25K) 6-year CDKansas
Wright-Patt Credit Union2.47% ($100K) 2.37% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
MidFirst Bank2.40% 7-year CDAZ and OK
SACU2.40% ($100K) 2.36% ($10K) 7-yearSan Antonio, TX
Doral Bank NY2.30% 7-year CDNYC
Financial Center Federal Credit Union2.25% 7-year CDparts of Indiana
First Republic Bank2.25% 6-year CDparts of CA, OR, MA, CT, FL and NY
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
26 Comments.
Comment #1 by Anonymous posted on
Anonymous
have you changed your format showing rates?  it's really hard to find the highest rate now,   it all just looks like ads and "featured" offers...

5
Comment #2 by Anonymous posted on
Anonymous
I agree.  I liked it better the way it was.

4
Comment #3 by Anonymous posted on
Anonymous
For the last 6-8 months all the analysts and experts have been saying "we are in a rising rate environment". So I finally know the definition of a "rising rate environment": a 0.0001 to 0.0005 percent rise in rate during a six month period depending on the term. Treasury rates have actually dropped. Yet they all still say "we're in a rising rate environment". I guess for those born today that live to 100 yeah we're in a rising rates environment.
 

12
Comment #4 by Robert (anonymous) posted on
Robert
As a follow-up to my question last week, I did a chat with Ally to see what they would say if I asked about negotiating a higher CD renewal bonus than 0.15%.   When I asked if I could negotiate, they said no.  When I asked if a manger could approve an increase, they said no.  When I asked if they ever heard of anyone getting a higher bonus than what was offered, they said no.  Oh well, I guess it doesn't hurt to ask.

4
Comment #5 by Anonymous posted on
Anonymous
All those employment, unemployment, GDP and interest rates are fixed and manipulated by the FEDs, do not believe in any of it.

14
Comment #6 by James Barnes posted on
James Barnes
Do you think we will finally see rates rise now?

1
Comment #8 by ThinkingMan (anonymous) posted on
ThinkingMan
Mortgage rates may rise, but the rates paid to savers will not be allowed to rise significantly. Savers own the pool of money that is being used to bail out the international banksters as well as our overly indebted government. A fair rate of return cannot be paid on your CDs because if the Federal Reserve allowed that, the people who control it would face bankruptcy, and the government itself would be unable to pay its bills.

10
Comment #7 by ThinkingMan (anonymous) posted on
ThinkingMan
The rates being paid on CDs continue to be dismal. There really seems to be no point to buying them anymore. The difference of .25% between the best MM account and a 1 or 2 year CD is not worth having your money tied up to get.

I plan on putting 1/3rd of all my assets into gold, right now, and leave 2/3rds into the best paying MM accounts I can find on this website. The cash in MM accounts portion will wait upon a crash of the stock market. Now that the Fed is lowering the funny-money printing rate, a stock price crash is inevitable.  When it finally happens, I'll use about 40% of the cash to buy high dividend blue chip stocks.

Real estate should crash again, also, somewhat in synch with the stock market crash, because RE prices are also being propped up by money printing and little else. I'm searching now, far in advance, for likely locations to buy. When the prices go back down, I will buy as much RE as I can afford until the amount of eventually-to-be-worthless dollar based cash is down to about 5% of where it is now.

I will ride out the storm of heavy inflation after the Fed ramps up the printing presses in reaction to the multiple collapses. In 10-15 years, which will be just about when I expect to retire, the dollar will buy, maybe, 1/8th what it buys now. The government will find it easy to pay its legacy debts. That's when interest rates will be deliberately raised astronomically, in order to "break the back" of the heavy inflation. The rates should end up much much higher than in the late 70s because the actions of the Fed now are much more extreme.

I'll start to sell the gold, stocks and real estate, when it is clear that rates are being raised. I'll put the money back into MM accounts for a while, but one 10+ year CDs reach about 30-40% per year, I will buy CDs. Gold will crash from maybe $30,000 per ounce, down to maybe $7,000, and the real estate and stock market will also crash. 

This is a reasonable plan to deal with the irresponsible behavior of the bubble-loving Federal Reserve, and the NYC-based international banksters who control it. Something similar, in my opinion, ought to be followed by every saver, rather than blindly continuing to buy CDs.

6
Comment #9 by Anonymous posted on
Anonymous
Although there is no end in site to our countries financial indebtedness, and may very well end in a total collapse, I would not "bank" on any of your recommendations.

5
Comment #10 by Anonymous posted on
Anonymous
The stock market has been manipulated and will go down for a long, long time.  Gold too may correct from where it is now.  There is no good alternative, but most things will go down in price against cash.  We will likely emulate Japan for some time: low growth, low inflation and high debt.  Under these circumstances I see no alternative to cash, even though cash itself is not really a good alternative.  CDs are the only viable alternative right now, although they are not a great alternative.

7
Comment #11 by Anonymous posted on
Anonymous
Bank of Mattress...in effect, for several years now!!

5
Comment #17 by InflationIsHighNow (anonymous) posted on
InflationIsHighNow
When stocks dramatically fall, gold will dramatically rise. That you can be certain of.

The government controls the printing of Federal Reserve Notes and it can raise or lower its value at will. If cash appreciated, programs from "no child left behind", to Obamacare, to Social Security/Medicare would have to be shut down. In short, if the dollar were allowed to rise significantly, the government will be forced into overt legal default. It is foolish to believe that the Fed/government is going to allow that, if it can covertly default through induced inflation, as it did in the 1970s.

The only certainty, for our future, is continued high inflation. Inflation is already high, in spite of government allegations that it is not. Prices are up significantly, and box/can sizes are way down. This has been the way things have been going, even as the government, and the NYC banksters claim we are in an "age of deflation".  Deflation is pure propaganda.

Ever looked at a tuna fish can lately?  In 2008, you could buy a 6 ounce can of light tuna for $0.50 at Walmart. Now, a can of tuna is only 5 ounces, and it costs $0.79. Tropicana "fresh-squeezed" O.J. regularly for $2 per 64 ounce bottle. Now, that bottle is only 56 ounces, and it costs $3.  The box size reductions are not considered by the government, and the overt price increases are watered down through statistical trickery.

It is part and parcel of the process of devaluing the US dollar by printing more of them.

6
Comment #12 by Anonymous posted on
Anonymous
News reports continue to indicate gold prices are even more manipulated than stocks, with several ongoing investigations at this time. As to CDs and MM accounts, there's an old saying that the return ON my principal is less important than the return OF my principal. I'm very happy with my 3% PenFed CDs!

13
Comment #13 by James Barnes posted on
James Barnes
I agree.  That's why I'm buying neither stocks or gold.

5
Comment #18 by Anonymous posted on
Anonymous
I believe that is why most of us here appreciate Ken and his web-site so much.  Accept for a few "trolls".

Thank you Ken!

5
Comment #20 by GoodluckFolks! (anonymous) posted on
GoodluckFolks!
Thank heaven for guys like you. If not for your willingness to hand your assets over to the government through monetary debasement, I would not be able to preserve mine!  Good luck.

3
Comment #23 by Anonymous posted on
Anonymous
To #20, how are you preserving your assets? Gold?

Gold went down 30% last year. I don't call that "preserving your assets"

2
Comment #14 by Anonymous posted on
Anonymous
Get read off the democrats in congress if you want to see a light at this endless tunnel.

5
Comment #15 by Anonymous posted on
Anonymous
#14
You crack me up

6
Comment #16 by James Barnes posted on
James Barnes
Get rid of the federal reserve

2
Comment #19 by Anonymous posted on
Anonymous
Put our country back on the gold standard.

5
Comment #21 by James Barnes posted on
James Barnes
I agree totally.

3
Comment #22 by Anonymous posted on
Anonymous
Let's see..."we" would want the very few gold producers to decide the value of the dollar...got it!

3
Comment #26 by Anonymous posted on
Anonymous
#22, apparently you do not comprehend how the our monetary system worked when it was on the "gold standard".  Do some research and you to enlighten yourself.

1
Comment #27 by Anonymous posted on
Anonymous
Did...no need to reward the "holders" of gold (past years it was silver).

1
Comment #24 by Anonymous posted on
Anonymous
Read Exorbitant Privilege by Barry Eichengreen.

1