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5.50% 1-year CDs Now at UFB Direct, M&T and Tranportation Alliance Banks


Several banks raised their 12-month CD yields to 5.50% today. These include UFB Direct, M&T Bank, and Transportation Alliance Bank. But the 6-month CD rates are not far behind. M&T Bank's 6-month CD yield increased to 5.39% APY. UFB Direct increased to 5.40% APY.

With a yield only 0.10% less than the 1-year CD yield, the 6-month CD seems to be the best deal. If 6-month CD yields increase by just 0.20% in the next six months, you would do better with a 6-month CD and letting it renew in 6 months. For example, the average one year yield of a 5.40% 6-month CD followed by a 5.60% 6-month CD is about 5.50%. I would anticipate at least a 0.20% increase in rates in the next six months.

Looking back about six months ago, Corus Bank was offering a 4.60% APY 6-month CD. The yield now is 5.37%. That's an increase of 0.77%. If rates continue to rise in the next six months like they have in the last six months, a 1-year CD would need to have a yield of about 5.80% to match the one year return of a 5.40% 6-month CD today followed by an estimated 6.17% 6-month CD six months from now.

Below are the new and old CD APYs by term from these 3 banks:

UFB Direct Certificates of Deposit
Term Old APY New APY Change
3-month 5.05% 5.10% +0.05
6-month 5.30% 5.40% +0.10
12-month 5.45% 5.50% +0.05
24-month 5.45% 5.50% +0.05
36-month 5.45% 5.50% +0.05
60-month 5.45% 5.50% +0.05

M&T Bank, N.A. Certificates of Deposit
Term Old APY New APY Change
3-month 4.99% 5.08% +0.09
6-month 5.25% 5.39% +0.14
9-month 5.27% 5.43% +0.16
12-month 5.33% 5.50% +0.17
18-month 5.35% 5.53% +0.18
24-month 5.32% 5.51% +0.19
30-month 5.32% 5.51% +0.19
36-month 5.31% 5.51% +0.20
48-month 5.32% 5.52% +0.20
60-month 5.33% 5.53% +0.20

Transportation Alliance Certificates of Deposit
Term Old APY New APY Change
3-month 4.60% 4.60%
6-month 4.65% 4.65%
12-month 5.15% 5.50% +0.35
24-month 5.34% 5.51% +0.17
36-month 5.44% 5.52% +0.08
48-month 5.47% 5.53% +0.06
60-month 5.51% 5.55% +0.04
  |     |   Comment #1
Emigrant is now 4.8% like HSBC and GMAC
Banking Guy
  |     |   Comment #2
Thanks, I've posted on it here. Hope GMAC has an increase on Friday.

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