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CD Rates Summary August 19, 2014

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CD Rates Summary August 19, 2014

Economic news in the last week slightly increased the chance that we’ll see a Fed rate hike in 2015. The latest good news is U.S housing starts in July. Today’s report showed a stronger housing market than expected, and that could boost the economy. There was also news on inflation today that was a mixed bag for savers. The Labor Department released its July Consumer Price Index report today, and it showed the overall pace of inflation has gone down slightly. The core CPI which excludes food and energy increased by 0.1% in July which was below what was expected by economists. Lower inflation is good news for savers since there’s less erosion of savings. This of course assumes that you believe in the government inflation numbers. Even if you don’t believe in these numbers, the Fed does, and these inflation numbers give the Fed more leeway to delay hiking rates.

More clues behind what the Fed is thinking may come out on Wednesday when the Fed releases the minutes of its last FOMC meeting. Some more clues may come out on Friday. That’s when Fed Chair Janet Yellen is scheduled to give a speech at the famous Jackson Hole economic symposium. It’s expected that Fed Chair Yellen will be giving a dovish speech which will suggest that the Fed will find reasons to delay rate hikes.

Treasury yields mostly fell over the last week, but the Fed fund futures’ probabilities increased slightly indicating that a Fed rate hike is more likely next year. Below is a summary of the changes. The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 0.02% down from 0.04% last week
  • 6-month: 0.05% down from 0.06% last week
  • 2--year: 0.44% up from 0.43% last week
  • 5--year: 1.58% down from 1.59% last week
  • 10-year: 2.39% down from 2.43% last week
  • 30-year: 3.20% down from 3.24% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 5% up from 4% last week
  • Apr 2015: 24% up from 21% last week
  • Jul 2015: 62% up from 59% last week
  • Oct 2015: 89% up from 87% last week

Certificate of Deposit Rates

Only one internet bank in my survey of top CD rates had any rate changes over the last week, and that was a rate increase. Nationwide Bank increased its 5-year CD rate by 10 basis points to 2.10% APY. Its 4-year CD rate increased by 6 basis points to 1.90% APY. The only internet bank with a higher 4-year CD rate is CIT Bank which has a 1.95% APY. Both of these are Jumbo CDs that require a $100K minimum deposit. Nationwide Bank’s CD rates that require only a $500 minimum deposit are 5 basis points lower than the Jumbo rates.

The best 4-year CD rates that are nationally available continue to be at credit unions. NASA Federal Credit Union is still on top with its special 2.25% APY 49-month CD. This is followed by Alliant Credit Union with a 2.10% APY 4-year CD and Melrose Credit Union with a 2.02% APY 4-year CD.

Nationwide Bank’s rate increase wasn’t enough to get close to the 5-year CD rate leaders. These continue to be the internet banks of CIT Bank, Synchrony Bank and EverBank. All three continue to offer a 2.30% APY. The best deal out of these three is Synchrony Bank since it has the smallest early withdrawal penalty of the three (6 months of interest).

It’s interesting to note that these three internet banks offer a higher 5-year CD rate than nationally available credit unions. Also, it’s higher than what you can get from brokered CDs. The highest 5-year brokered CD rate that’s currently listed at Fidelity is 2.10%. That’s up 5 basis points from last week, but it’s still quite a bit lower than what you can get at these internet banks.

It’s even hard to find any local 5-year CD rates higher than 2.30%. There are a few, but they don’t exceed 2.30% by much. One new one that was mentioned in the last week is Select Federal Credit Union in San Antonio, Texas. It’s offering 2.50% APY.

You can get much better deals at some local banks and credit unions than you can from internet banks for shorter term CDs. Two new examples are a 1.35% APY 1-year CD at Select Federal Credit Union and a 1.25% APY CD at Bay Ridge Federal Credit Union in New York City.

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.

Savings & Checking Account Rates

In the past I’ve covered savings and checking account rate changes in another weekly summary post. Each week I would publish one post with a recap of savings and checking account rate changes and another post with a recap of CD rate changes. Since there aren’t a lot of rate changes, I’m going to alternate these posts. This week I’ll just publish this CD summary. Next week I’ll just publish the savings/checking summary. Two weeks from now, I’ll do another CD summary, and three weeks from now I’ll do another savings/checking summary. For both summaries I’ll include the same economic overview. You can always get the latest rates for savings/checking accounts and CDs by using our rate tables. Just use the menu on top.

Here’s the link to last week’s savings/checking recap.

Yields Accurate as of August 19, 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
Connexus Credit Union1.00% 6-month CDw/active chk
Charter Oak Credit Union1.00% 8-month GO CD Special ($75K max)Connecticut
Doral Direct0.91% 9-month CDaccount review
Quorum Federal Credit Union0.90% 9-month CD
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
Security First Credit Union1.16% 9-month CD SpecialTexas
Flagstar Bank1.15% savings account w/12-mo rate guaranteeMichigan
Bay Ridge Federal Credit Union1.01% 6-month Bonus CD ($20K min)Brooklyn, NY
Premier Credit Union1.00% 5-month CD Specialparts of Iowa
Gulf Coast Federal Credit Union1.00% 6-month CDCorpus Christi, TX metro
NavyArmy Community Credit Union0.95% ($100K) 0.85% ($1K) 6-month CDCorpus Christi, TX metro
Doral Bank NY0.80% 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
Colorado Federal Savings Bank1.10% 1-year CD
East River Bank1.10% 14-month Fixed Rate CD Special
Synchrony Bank1.10% ($25K min) 1-year CDFormerly MetLife
Triumph Savings Bank, SSB1.10% ($1K min) 1-year CD
Connexus Credit Union1.10% 1-year CDw/active chk
Silvergate Bank1.08% ($25K min) 1-year CDOpen and fund online
CIT Bank1.05% ($25K min) 1-year CDadd-on & bump-up 1-year CD

Noteworthy Local Deals - 1-Year CDs

InstitutionRatesRegion
CFG Community Bank1.35% 1-year CD relationshipMD
Select Federal Credit Union1.35% 1-year CDSan Antonio, TX metro
Gulf Coast Federal Credit Union1.30% 12-month CDCorpus Christi, TX metro
Idaho Central Credit Union1.25% 13-month CD PromoIdaho
Icon Credit Union1.25% 1-year special CDparts of ID and OR
LOMTO Federal Credit Union1.25% 1-year CDparts of New York City
Central State Bank1.25% ($5K min) 1-year CD SpecialIowa
Bay Ridge Federal Credit Union1.25% 1-year Bonus CD ($20K min)Brooklyn, NY
Belmont Savings Bank (OH)1.21% 1 year CDOhio
Nuvo Bank & Trust Company1.21% ($250K max) 13-month CD Massachusetts
NavyArmy Community Credit Union1.20% ($100K) 1.00% ($1K) 1-year CDCorpus Christi, TX metro
Doral Bank Florida1.13% 13-month CDFlorida
Cooper State Bank1.10% 12-35 month CDOhio
South Florida Federal Credit Union1.06% 1-year CDSouth Florida

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
Darien Rowayton Bank1.50% 17-month CD
Aspire Federal Credit Union1.26% 15-month CD
Triumph Savings Bank, SSB1.25% ($1K min) 1-year CD
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
Synchrony Bank1.20% 15-month CD specialFormerly MetLife
Ally Bank1.16% (1.60% 5-year CD closed after 18 months w/new ewp)see review & risks

Noteworthy Local Deals - 18-Month CDs

InstitutionRatesRegion
Charter Oak Credit Union2.00% 17-month GO CD Special ($75K max)Connecticut
Idaho Central Credit Union1.50% 21-month CD PromoIdaho
Gulf Coast Federal Credit Union1.45% 18-month CDCorpus Christi, TX metro
Belmont Savings Bank (OH)1.31% 18-month CDSoutheast Ohio
Asian Bank1.28% 18-month CD SpecialPhiladelphia metro area
South Jersey Federal Credit Union1.26% 18-month CDParts of New Jersey
The Berkshire Bank1.20% 18-month CDNYC, parts of Upstate New York
Doral Bank NY1.10% 18-month CDNYC

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
Melrose Credit Union1.41% 2-year CD
BBVA Compass1.35% (w/relationship checking) 1.25% (w/o relation) 29-month CDnow nationally available
CIT Bank1.30% ($100K min) 2-year CD
Connexus Credit Union1.30% 2-year CDw/active chk
Ally Bank1.27% (1.60% 5-year CD closed after 2 years w/new ewp)see review & risks
USAlliance Credit Union1.26% 25-month CDNew members, new money
Colorado Federal Savings Bank1.25% 2-year CDInternet Bank
EverBank1.25% 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
Third Federal1.15% 29-month CDpromotional

Noteworthy Local Deals - 2-Year CDs

InstitutionRatesRegion
Midwestone Bank2.00% 27-month CD Bump Up Specialrelationship
University of Iowa Community Credit Union1.75% 23-month CD SpecialIowa
Gulf Coast Federal Credit Union1.55% 2-year CDCorpus Christi, TX metro
Florida Credit Union1.51% 25-monthSpecial CDFlorida
Frankenmuth Credit Union1.51% 21-month CD SpecialMichigan
Idaho Central Credit Union1.50% 21-month CD PromoIdaho
Bay Ridge Federal Credit Union1.50% 2-year Bonus CD ($20K min)Brooklyn, NY
NavyArmy Community Credit Union1.50% ($100K) 1.30% ($1K) 2-year CDCorpus Christi, TX metro
Keesler Federal Credit Union1.50% ($100K) 1.40% ($1K) 2-year CDMississippi
LOMTO Federal Credit Union1.45% 2-year CDparts of New York City
Select Federal Credit Union1.45% 2-year CDSan Antonio, TX metro
Security First Credit Union1.39% ($50K) 1.36% ($1K) 2-Year CD SpecialTexas
People's Alliance Federal Credit Union1.35% 28-month CDNYC and Miami
Idaho Central Credit Union1.31% 2-year Online CD Idaho

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 Credit Union1.71% 35-month CD
Melrose Credit Union1.66% 3-year CD
America's Credit Union1.50% 3-year CDpromotional
CIT Bank1.50% ($100K) 1.35% ($1K) 3-year CD
EverBank1.46% 3-year CD
Sallie Mae Bank1.45% 3-year CD
State Farm Bank1.45% 3-year CD
Colorado Federal Savings Bank1.40% 3-year CDInternet bank

Noteworthy Local Deals - 3-Year CDs

InstitutionRatesRegion
Gulf Coast Federal Credit Union2.02% 3-year CDCorpus Christi, TX metro
University of Iowa Community Credit Union2.00% 32-month CD SpecialIowa
NavyArmy Community Credit Union2.00% ($100K) 1.75% ($1K) 3-year CDCorpus Christi, TX metro
Frankenmuth Credit Union2.00% 37-month CD SpecialMichigan
Guardian Credit Union1.99% ($20K min $100K max) 3-year CD SpecialActive or Retired Military
Firstmark Credit Union1.85% 40-month Regular CD PromotionGreater San Antonio
Lower Valley Credit Union1.81% 3-year CD Washington State
Mid-Minnesota Federal Credit Union1.76% 3-year CDparts of Minnesota
Homebanc National Association1.75% ($10K min $75K max) 39-month CDFlorida
Select Federal Credit Union1.75% 3-year CDSan Antonio, TX metro
Bay Ridge Federal Credit Union1.75% 3-year Bonus CD ($20K min)Brooklyn, NY
Keesler Federal Credit Union1.70% ($100K) 1.60% ($1K) 3-year CDMississippi
Asian Bank1.68% 30-month CD SpecialPhiladelphia metro area
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
Cooper State Bank1.60% 3-year Step Up CDOhio

4-Year CD Rates

InstitutionRatesNotes
NASA Federal Credit Union2.25% 49-month CD special
Alliant Credit Union2.10% 48-60 month CD
Melrose Credit Union2.02% 4-year CD
Synchrony Bank2.01% (2.30% 5-year CD closed after 4 years)see review & risks
Barclays1.97% (2.25% 5-year CD closed after 4 years)see review & risks
CIT Bank1.95% ($100K) 1.85% ($50K) 1.80% ($1K) 4-year CD
Nationwide Bank1.90% ($100K) 1.85% ($500) 4-year CD
EverBank1.85% 4-year CDpromotional
America's Credit Union1.80% 4-year CDpromotional
VirtualBank1.79% 4-year CD
State Farm Bank1.75% 4-year CD
Third Federal1.75% 49-month
Darien Rowayton Bank1.75% 45-month CD
Synchrony Bank1.75% ($25K) 1.70% ($2K) 4-year CDFormerly MetLife
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 Union2.11% 4-year CDparts of WV, OH & SC
Farmers State Bank2.11% 4-year CDNebraska
Kemba Federal Credit Union2.10% 4-year CDGreater Cincinnati
Idaho Central Credit Union2.00% 4-year CD PromoIdaho
Bay Ridge Federal Credit Union2.00% 4-year Bonus CD ($20K min)Brooklyn, NY
Keesler Federal Credit Union2.00% ($100K) 1.90% ($1K) 4-year CDMississippi
LOMTO Federal Credit Union1.85% 4-year CDparts of New York City
Lisle Savings Bank1.76% 42-month CD ($2K min)Illinois
Firelands Federal Credit Union1.75% 4-year CDparts of Ohio
MidFirst Direct1.75% 4-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Doral Bank NY1.55% 4-year CDNYC
People's Alliance Federal Credit Union1.54% 4-year CDNYC and Miami
Fifth Third Bank1.50% 44-month 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
Mountain America Credit Union2.20% 5-year CD
State Farm Bank2.15% 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 CD2.10% 5-year non-callable CDissued by Synchrony Bank
Nationwide Bank2.10% ($100K) 5-year CD
Velocity Credit Union2.02% 5-year CD
Darien Rowayton Bank2.00% 59-month CD

Noteworthy Local Deals - 5-Year CDs

InstitutionRatesNotes
Select Federal Credit Union2.50% 5-year CDSan Antonio, TX metro
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
Lower Valley Credit Union2.27% 5-year CD Washington State
Citizens Union Bank of Shelbyville2.26% 5-year CDKentucky
Firelands Credit Federal Union2.25% 5-year CDparts of Ohio
Bay Ridge Federal Credit Union2.25% 5-year Bonus CD ($20K min)Brooklyn, NY
Farmers State Bank2.16% 5-year CDNebraska
LOMTO Federal Credit Union2.15% 5-year CDparts of New York City
American Federal Savings Bank2.02% 50-month CDMontana
Fifth Third Bank2.00% 5-year CD specialseveral eastern and midwestern states

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 Direct2.30% 10-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
Franklin Federal Savings Bank2.22% 7-year CDaccount review
Apple Federal Credit Union2.20% 7-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 Direct3.00% 10-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Frick Tri-County Federal Credit Union3.00% 10-year CDparts of Western PA
MidFirst Bank2.90% 10-year CDAZ and OK
San Antonio Federal Credit Union2.90% ($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
Dollar Bank2.65% 10-year CDPittsburgh and Cleveland
Doral Bank NY2.50% 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
San Antonio Federal Credit Union2.45% ($100K) 2.40% ($10K) 7-yearSan Antonio, TX
MidFirst Bank2.40% 7-year CDAZ and OK
Wright-Patt Credit Union2.39% ($100K) 2.29% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH

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


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