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Survey of the Best CD Rates for July 7, 2014

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Survey of the Best CD Rates for July 7, 2014

In this last week there were a few more rate cuts than rate increases in the top CDs that are tracked in this survey. A few noteworthy rate increases came from CIT Bank which increased its 2-year and 3-year CD rates. The best deal is CIT Bank’s 2-year RampUp Plus CD. It now has a 1.25% APY, and this CD has both a one-time rate bump-up option and a one-time add-on deposit option.

Other noteworthy rate increases came from Bayer Heritage Federal Credit Union which has branches in West Virginia, Pennsylvania, Ohio, South Carolina and Texas. Bayer Heritage’s 5-year CD yield increased from 2.40% to 2.53%, and its 4-year CD yield increased from 2.15% to 2.27%.

Two additions this week came from new CD deals that I posted on last week. Both are local deals.

The first is a 1.30% APY 13-month CD special at Los Angeles Federal Credit Union. Unfortunately, there’s a maximum deposit of $25K. Anyone in Southern California is eligible to join.

The second addition is a 2.30% APY 33-month CD special from Everett Co-operative Bank. This is a small bank with one branch located in Everett, Massachusetts which is just north of Boston. No out-of-state deposits are allowed this CD.

There were also two additions from easy-to-join credit unions. Both are short-term CDs. The first is the 1% APY 5-month Loyalty Certificate at America’s Credit Union. This requires a checking and lending relationship. The second is the 0.90% APY 9-month certificate at Quorum Federal Credit Union.

As I mentioned above, there were more rate cuts than rate increases. Several CD rate cuts occurred at First Republic Bank. The largest rate cut was on the 6-year CD. Its rate fell from 2.35% to 2.05% APY.

HAB Bank with branches in Los Angeles and New York City had been offering a great deal on a 1-year CD. Rates fell and the new rates are no longer competitive, so HAB Bank has been removed from the tables below.

Two institutions ended their CD specials. Northern Bank & Trust is no longer listing its 1.25% APY 20-month CD, and Connexus Credit Union is no longer listing its 1.01% APY 9-month CD. Aspire Federal Credit Union is still offering its 15-month CD special, but the rate fell from 1.25% to 1.00% APY.

The best long-term CD deal continues to be the 3.04% APY 7-year add-on CD at Tobyhanna Federal Credit Union. Many readers have shared their experiences and opinions on this CD in the comments of my Tobyhanna CD review post. One note about these types of deals at small credit unions is that there’s always a risk that the CD features may not hold up through the entire term. I did this post a couple of weeks ago on what happened at another credit union.

An alternative to short-term CDs is long-term CDs that have mild early withdrawal penalties. Two banks with top 5-year CD rates and a mild early withdrawal penalty are Synchrony Bank and Barclays. Both have very competitive 5-year CDs with an early withdrawal penalty of only 6 months of interest. I included the effective yields of these CDs when closed early in the tables below. 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.

Yields Accurate as of July 7, 2014

Under 1-Year CD Rates

InstitutionRatesNotes
EverBank1.40% checking/MMA intro 6-month rate ($100K/$50K max)account review
Americas Credit Union1.00% 5-month CDw/relationship
Quorum Federal Credit Union0.90% 9-month CD
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
Libertad Bank1.31% MMA with rate guaranteed to 12/31/14Texas
NavyArmy Community Credit Union1.20% ($100K) 1.10% ($1K) 6-month CDCorpus Christi, TX metro
Flagstar Bank1.15% savings account w/12-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
Melrose Credit Union1.15% 1-year CD
Synchrony Bank1.15% (2.30% 5-year CD closed after 1 year)see review & risks
EverBank1.10% 1-year CD
Synchrony Bank1.10% ($25K min) 1-year CDFormerly MetLife
GE Capital Bank1.10% 1-year CD
Connexus Credit Union1.10% 1-year CDw/active chk
VirtualBank1.07% 1-year CD
CIT Bank1.05% ($25K min) 1-year CDadd-on & bump-up 1-year CD

Noteworthy Local Deals - 1-Year CDs

InstitutionRatesRegion
NavyArmy Community Credit Union1.45% ($100K) 1.15% ($1K) 1-year CDCorpus Christi, TX metro
Los Angeles Federal Credit Union1.30% ($25K max) 13-month CD specialSoCal
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 Union1.25% 1-year CDparts of New York City
Doral Bank NY1.25% 1-year CDNYC

18-month CD Rates

InstitutionRatesNotes
Synchrony Bank1.53% (2.30% 5-year CD closed after 18 months)see review & risks
Xceed Financial Credit Union1.50% 17-month CD
Barclays1.50% (2.25% 5-year CD closed after 18 months)see review & risks
NASA Federal Credit Union1.25% 15-month CD special
BBVA Compass1.25% (w/relationship checking) 1.15% (w/o relation) 18-month CDnow nationally available
EverBank1.17% 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
Synchrony 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
Doral Bank NY1.30% 18-month CDNYC
South Jersey Federal Credit Union1.26% 18-month CDparts of New Jersey

2-Year CD Rates

InstitutionRatesNotes
Synchrony Bank1.72% (2.30% 5-year CD closed after 2 years)see review & risks
Barclays1.69% (2.25% 5-year CD closed after 2 years)see review & risks
Quorum Federal Credit Union1.50% 25-month CD special
Third Federal1.50% 29-month CDpromotional
Melrose Credit Union1.41% 2-year CD
BBVA Compass1.35% (w/relationship checking) 1.25% (w/o relation) 29-month CDnow nationally available
Northrop Grumman Federal Credit Union1.28% ($40K) 1.14% ($2.5K) 2-year CD
Ally Bank1.27% (1.60% 5-year CD closed after 2 years w/new ewp)see review & risks
CIT Bank1.30% ($100K min) 2-year CD
Connexus Credit Union1.30% 2-year CDw/active chk
EverBank1.26% 2-year CD
Salem Five Direct1.25% 2-year CD
CIT Bank1.25% ($25K min) 2-year CDadd-on & bump-up options
Bank5 Connect1.20% add-on 2-year CDnot available to MA & RI residents

Noteworthy Local Deals - 2-Year CDs

InstitutionRatesRegion
University of Iowa Community Credit Union2.00% 25-month CD special
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 NY1.50% 2-year CDNYC
Keesler Federal Credit Union1.50% ($100K) 1.40% ($1K) 2-year CDMississippi
LOMTO Federal Credit Union1.45% 2-year CDparts of New York City
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
Synchrony Bank1.92% (2.30% 5-year CD closed after 3 years)see review & risks
Barclays1.88% (2.25% 5-year CD closed after 3 years)see review & risks
Connexus Credit Union1.75% 3-year CD w/active chk
USAlliance Federal Credit Union1.71% 35-month CD
Melrose Credit Union1.66% 3-year CD
Northern Bank & Trust Company1.60% 3-year CD
America's Credit Union1.50% 3-year CDpromotional
CIT Bank1.50% ($100K) 1.35% ($1K) 3-year CD
Sallie Mae Bank1.45% 3-year CD
Navy Federal Credit Union1.40% ($100K) 1.35% ($20K) 3-year CDlimited membership

Noteworthy Local Deals - 3-Year CDs

InstitutionRatesRegion
Everett Co-operative Bank2.30% 33-month CD special w/chkBoston metro
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
Kemba Credit Union2.00% 42-month CD specialGreater Cincinnati
Keesler Federal Credit Union1.70% ($100K) 1.60% ($1K) 3-year CDMississippi
Doral Bank NY1.65% 3-year CDNYC
Keesler Federal Credit Union1.65% ($100K) 1.55% ($1K) 3-year bump-up CDMississippi
LOMTO Federal Credit Union1.65% 3-year CDparts of New York City
Progressive Credit Union1.61% 3-year CD (NYC with unique FOM)account review
First Republic Bank1.40% 3-year CDparts of CA, OR, MA, CT, FL and NY

4-Year CD Rates

InstitutionRatesNotes
NASA Federal Credit Union2.25% 49-month CD special
Melrose Credit Union2.02% 4-year CD
Synchrony Bank2.01% (2.30% 5-year CD closed after 4 years)see review & risks
Third Federal2.00% 49-month CDpromotional
Barclays1.97% (2.25% 5-year CD closed after 4 years)see review & risks
Nationwide Bank1.84% ($100K) 1.79% ($500) 4-year CD
America's Credit Union1.80% 4-year CDpromotional
CIT Bank1.80% ($100K) 1.70% ($50K) 1.65% ($1K) 4-year CD
VirtualBank1.79% 4-year CD
EverBank1.79% 4-year CD
Synchrony Bank1.75% ($25K) 1.70% ($2K) 4-year CDFormerly MetLife
Barclays1.70% 4-year CD
Fort Knox Federal Credit Union1.65% 46-month CDConsumer-unfriendly history, see review
Navy Federal Credit Union1.65% ($100K) 1.60% ($20K) 1.55% ($1K) 4-year CDlimited membership
Ally Bank1.30% Raise-Your-Rate 4-year CD

Noteworthy Local Deals - 4-Year CDs

InstitutionRatesRegion
Institution for Savings2.50% ($250K) 4-year Money Market CD (also req $250K in MMA)parts of MA
Bayer Heritage Federal Credit Union2.27% 4-year CDparts of WV, OH & SC
Keesler Federal Credit Union2.00% ($100K) 1.90% ($1K) 4-year CDMississippi
First Republic Bank1.90% 4-year CDparts of CA, OR, MA, CT, FL and NY
LOMTO Federal Credit Union1.85% 4-year CDparts of New York City
Doral Bank NY1.75% 4-year CDNYC
MidFirst Direct1.75% 4-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Fifth Third Bank1.50% 4-year CD specialseveral eastern and midwestern states

5-Year CD Rates

InstitutionRatesNotes
Synchrony Bank2.30% ($25K) 2.25% ($2K) 5-year CDFormerly MetLife
CIT Bank2.30% ($100K) 2.25% ($1K) 5-year CD
EverBank2.30% 5-year CD
Melrose Credit Union2.27% 5-year CD
GE Capital Bank2.25% 5-year CD
Barclays2.25% 5-year CD
Navy Federal Credit Union2.15% ($100K) 2.10% ($20K) 5-year CDlimited membership
Sallie Mae 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 CD2.05% 5-year non-callable CDissued by Synchrony Bank
Nationwide Bank2.00% ($100K) 5-year CD
Discover Bank1.95% 5-year CD

Noteworthy Local Deals - 5-Year CDs

InstitutionRatesNotes
Bayer Heritage Federal Credit Union2.53% 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
LOMTO Federal Credit Union2.15% 5-year CDparts of New York City
First Republic Bank2.00% 5-year CDparts of CA, OR, MA, CT, FL and NY

Over 5-Year CD Rates

InstitutionRatesRegion
Fidelity New Issue Brokered CD3.30% 10-year non-callable CDissued by Synchrony Bank
Tobyhanna Federal Credit Union3.04% 7-year add-on CDaccount review
Fidelity New Issue Brokered CD2.65% 7-year non-callable CDissued by Synchrony Bank
Apple Federal Credit Union2.60% 10-year CD
Navy Federal Credit Union2.55% ($100K) 2.50% ($20K) 7-year CDlimited membership
Special Custodial CD2.53% ($100K) 10-yearaccount review
Doral Direct2.40% 10-year CDaccount review
Franklin Federal Savings Bank2.32% 7-year CDaccount review
GE Capital Bank2.30% 6-year CD
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
Franklin Federal Savings Bank2.12% 6-year CDaccount review
Discover Bank2.05% 7-year CD
Doral Direct2.00% 7-year CDaccount review

Noteworthy Local Deals - Over 5-year CDs

InstitutionRatesRegion
Hutchinson Credit Union3.15% ($250K) 3.10% ($100K) 3.05% ($25K) 10-year CDKansas
MidFirst Direct3.00% 10-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
MidFirst Bank3.00% 10-year CDAZ and OK
Frick Tri-County Federal Credit Union3.00% 10-year CDparts of Western PA
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
Dollar Bank2.65% 10-year CDPittsburgh and Cleveland
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
SACU2.45% ($100K) 2.40% ($10K) 7-yearSan Antonio, TX
MidFirst Bank2.40% 7-year CDAZ and OK
Doral Bank NY2.30% 7-year CDNYC
Wright-Patt Credit Union2.29% ($100K) 2.19% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
Financial Center Federal Credit Union2.25% 7-year CDparts of Indiana
First Republic Bank2.05% 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.

Links to All of the CD Rate Tables


  Tags: CD rates

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Comments
24 Comments.
Comment #1 by Anonymous posted on
Anonymous
From Ken's above report:  "The best long term CD deal continues to be the 3.04% APY 7-year add-on CD at Tobyhanna Federal Credit Union... One note about these types of deals at small credit unions is that there's always a risk that the CD features may not hold up through the entire term."  This is my concern.  Although I would prefer to wait six months before going fully into this CD, I worry that the add-on feature may be changed and that then I wouldn't be able to add-on to the CD.  I may fund the whole CD now just because of this concern.

3
Comment #2 by gregk posted on
gregk
 In my view the likelihood of Tobyhanna altering the terms of existing CD's so soon after establishing them is miniscule, - it would be a public relations disaster, and in substance the equivalent to a con (or at least a "bait and switch").  While no longer unprecedented, any reputable FI just isn't going to pull something like that except under the most extraordinary circumstances (such as their continuing existence or financial viability being threatened without so doing).  It's plausible to think Toby might remove the add-on feature of this CD for prospective investors at some point or even withdraw the offer altogether, but to allow some alteration in your decision process because of anxiety that the terms of your already opened CD might quickly be changed I think would be unwise, and even just a bit paranoid.

5
Comment #3 by lou posted on
lou
I agree with gregk.

5
Comment #4 by Anonymous posted on
Anonymous
I see what you are saying. Maybe I should wait until January and see what happens. I got concerned about this when I carefully read Ken's statement.

3
Comment #5 by gregk posted on
gregk
When a Certificate of Deposit becomes an investment vehicle we all have to start worrying over whether any of its contractual terms might willy-nilly be changed at any time on the whim of its issuer then our financial world is indeed crumbling, - or alternatively we are.

6
Comment #6 by Anonymous posted on
Anonymous
I agree.  But please read about Mike Jordan's experience with Achieva Credit Union which Ken reported on a couple of weeks ago.  This is worrisome.  I hope Tobyhanna doesn't try something like this.

1
Comment #7 by Anonymous posted on
Anonymous
Achieva Credit Union is a state chartered credit union. I have to wonder if NCUA would have enforced it's ruling on Achieva if it was a federally chartered credit union.

1
Comment #8 by Anonymous posted on
Anonymous
Good point.  I just hope Toby doesn't try something like Achieva did.

1
Comment #9 by gregk posted on
gregk
It's the CD world's new variation on "timing the market" I suppose, - trying to guess when the Certificate provisions might be changed on you and determining a strategy in response.  How absurd we've now come to that.

6
Comment #10 by Anonymous posted on
Anonymous
It is totally absurd.  Although I'd prefer to wait until January, 2015 to add to the Toby CD, I don't know if I should add to it now in case Toby stops allowing add ons.

1
Comment #11 by Anonymous posted on
Anonymous
To me you spread your cd investments out in a ladder and keep your money working for you and invested in the best you can get at the present time.  No large amounts set in a near zero checking or savings account waiting to time the rates.   In your case, you have been trying to make up your mind to go ahead and put $203K in the Toby 3.04%.  Apx. 42 days of not doing anything yet has cost you a lost of interest of apx. $710.  This is assuming that your $203K is setting in a near zero rate earning checking account.  If you wait until January, 2015, your loss of interest will be apx. $3,669.  Your current loss would be slightly less if you have it setting in a savings account earning near 1% but it is still a loss.  In January'2015, if rates are high enough, you may make up the difference and even more thereafter.  If rates are the same or less, then you will definitely have this loss plus even more because then you go in at a lower or same rate.  This is why you spread your cd's out by laddering  and average in on the interest rate environment.  Timing interest rates works about the same as trying to time the stock market.  It only works most of the time when you are lucky.  In summary, what has worked best for me is to ladder and not try to time interest rates.

6
Comment #12 by Anonymous posted on
Anonymous
I tend to agree with you.  The fact that Toby may decide to end the add-on deal is only one more consideration.  My money is sitting in an account earning 1.05%.  I think, at the end of this month, I will increase my investment in the Toby 7 year from $1,005 to $203,000.  If rates rise precipitously, I will close the CD, pay the two year EWP and take it off my income taxes.

1
Comment #13 by Anonymous posted on
Anonymous
The withdrawal penalty is on 1040 line 30 and is an adjustment to income, not a reduction in overall tax owed. Two years at 3.04% on 200K is > 12K interest. In the 28% bracket you'll lose close to 9K. If done at the end of the first two years, you're 200K is now approximately 191K, not counting the loss to inflation. I hurried so someone may want to verify my math.

2
Comment #14 by lou posted on
lou
Exactly, #13. Writing off the penalty is no panacea.

2
Comment #15 by lou posted on
lou
Actually, your example is what would have happened if you broke the CD right after you purchased it. If you waited two years, the CD would be worth $200,000, since you would have lost the $12,000 you had earned in the intervening years. However, there would be no tax savings because the $12,000 penalty would have only offset the $12,000 you had earned from the CD, not any of your other income. To me, this is a very painful outcome as well since your $200,000 earned nothing for 2 years.

2
Comment #16 by Anonymous posted on
Anonymous
Correct you are. I knew I went a bit too fast in the early morning. In any case, two years of dead money at 200K is expensive! I appreciate the correction.

1
Comment #17 by Anonymous posted on
Anonymous
So in this example, some figuring needs to be done to determine what the interest rates need to be in 2 years to make the $12K EWP worthwhile.  To just break even in the remaining 5 years of the initial 7 year cd term, the new cd interest rate in 2 years would need to be slightly over 4.28% APY.  If it were 4.5% APY, you would gain $2,442 and if it were 5.0% APY, you would gain $8,111.  Again, I think I will just stay with my ladder and hope like the dickens that in 2 years I can get 5.0% APY on my maturing cd's in my ladder.  I think that is wishful thinking though.

1
Comment #18 by Anonymous posted on
Anonymous
I read some of these comments and just laugh.  I learned to ladder my CDs years ago and earn a decent amount of interest considering the interest rate climate these days.  No fussing over various scenarios that may or may not occur.

The housing market, employment report, inflation rate, another terrorist strike, etc. the economy is to fickle and can change on a dime overnight no matter how bright the future looked the day before. 

1
Comment #19 by Anonymous posted on
Anonymous
So if I interpret you comment correctly.  You have been laddering your cd's for years and you are laughing all the way to the bank.

1
Comment #21 by Anonymous posted on
Anonymous
And, laughing at the bank

1
Comment #20 by Anonymous posted on
Anonymous
So, unless interest rates rise to at least 4.28%, one is probably better to stay in a CD earning 3.04%.

1
Comment #22 by Anonymous posted on
Anonymous
Two years out, you would break even at 4.28%.  Four years out, you would need to get 5.11% to break even. 

1
Comment #23 by Anonymous posted on
Anonymous
I doubt we will be at 4% in two years or 5% in four years.  I hope I'm wrong.

2
Comment #24 by Anonymous posted on
Anonymous
When speaking about future rates I think posters should mention the time frame they are referring to. One year CD rates are currently much less than 5, 7, and 10 year rates.   

1