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CD Rates Falling Quickly - Best Options for Locking in CD Rates


With today's surprise rate cut by the Fed, savings and CD rates will surely plummet in the next week. Already, large CD rates cuts have occurred at Ascencia, La Jolla Bank, NewBank, Pacific Mercantile Bank and Bank of Internet. A reader in the previous post had asked about some good CD rates from banks with the best protection periods. This would be useful for those who may be a week or two from a CD maturity or other source of money. Some banks will lock today's rate for a period of time after the application is submitted. Below are some banks and credit unions which meet this criteria. Note, This info is based on calls to the banks and from reports from readers. Please check with the institution to verify and for the funding details. If you have experience with these institutions, please leave a comment.

  • Capital One - 4.75% APY 48mo, 4.85% APY 60mo, 5.15% APY 84mo, 5.30% APY 120mo, Locks at time of application. You have 10 days to fund. Can be funded by check, wire or ACH. Early withdrawal penalty is 6mo interest for terms 12mo and longer. Note, rates likely to change tomorrow.
  • WaMu - 4.75% APY 60mo, Locks at time of application. You have 30 days to fund. Can be funded by check, wire or ACH. See page 48 of account terms and conditions (pdf) for early withdrawal penalties.
  • KeyDirect - 4.75% APY 30-47mo, 5.40% APY 84mo, 5.70% APY 120mo Locks at time of postmark of the mailed check. Early withdrawal penalty is 12mo inteest for terms of 48mo and longer (my KeyDiret review).
  • Patelco CU - 4.80% APY 36-60mo, Locks at time of application. You have 10 days to fund. Can be funded by check or ACH. Early withdrawal penalty is 3mo interest on all terms (my Patelco review).

There are other CD options that may not have the best lock protections. But if you're just looking to lock in the best rates as quickly as possible, these may be good options.

[ Update 1/25/08: Alliant's CD rate just fell to 4.90% APY for the $25K min.] Alliant Credit Union is still offering 5.40% APY on terms from 12 to 24 months. I'm not sure how long it may take to join and open a CD. Readers have reported problems with the online interface. Others reported being able to join and open the CD within a couple of days (my Alliant CD review).

You might also want to look into the CDs at Pentagon Federal Credit Union which is currently offering a 5.00% APY 5-year and 5.25% APY 7-year. You can join and open a CD online immediately. (my PenFed review). Also, E-LOAN still has some decent CD rates with a 4.71% APY for 12 and 24 month terms (my E-LOAN CD review). The only option to fund is by ACH transfer, but you can apply tonight and lock in today's rate. Note, E-LOAN often changes their rates on Wednesday.

Edit 1/23/08: Added reference to WaMu terms for early withdrawal penalties.
Related Pages: Patelco Credit Union, San Francisco Bay, Sacramento, CD rates

Related Posts

Ren   |     |   Comment #1
Provident CU has 16 and 60 month CDs at 5.01% APY at time of posting. For those of us who already have Super Reward checking accounts with them, it's a couple of forms to switch over. Yes, it's a .5% loss over what SRC is paying, but who knows how long that will last?
llovasi   |     |   Comment #2
Emigrant Direct just dropped its CD rate from 4.55% to 3.50% APY.
Patrick   |     |   Comment #3
Does anyone have ideas on when banks will start dropping their savings account rates, like they've been doing with CD rates? E*Trade's Complete Savings is still at 5.05%. Yet their CD rates are all below 4.45%. Obviously they don't want to lose customers, but it seems a drop is inevitable. How big do you think the drop will be?
Anonymous   |     |   Comment #4
superior savings locks in 14 days from date of postig. 5.25% 7month
defiantroa   |     |   Comment #5
#$%^ that TDAmeritrade is offer 5.30% CD for 3 months
hans   |     |   Comment #6
WaMu's website says only 7 days to fund online CD for NJ customers.
Anonymous   |     |   Comment #7
WaMu still has the 5.1% APY 7 mo. with add-on.
Anonymous   |     |   Comment #8
Wachovia has 5-month CD at 5.01% APY. Online application is smooth and you have 10 days from date of application to fund (my app was dated 1/20 even tho I prepared & submitted it 1/22). Other strange part is if you want to fund by ACH or wire "a CSR will contact you to arrange" so you can't just pull money in from a linked external account.
Anonymous   |     |   Comment #9
I second the WaMu 7 days (CA). I won't be able to get the money that fast.

Therefore, I had to open an account with CapitalOne (and I hate them). Are you sure they'll give you 10 days?

I couldn't find that information on their website
Anonymous   |     |   Comment #10
Countrywide gives you 10 days from date of application to fund. In some states, they're still offering 5% for 3 or 6 months.
Anonymous   |     |   Comment #11
ING Direct (savings) down to 3.65% APY as of January 23, 2008
Anonymous   |     |   Comment #12
Flagstar still has apy rates of 5% for 6 mo's, 4.91 for 12 mo,s , and 4.86 for 18, 24 , 30 , 36 , 48 ,and 60 mo"s . I beleive the min amount is only $500.
Anonymous   |     |   Comment #13
fyi, etrade's complete savings is down to 4.40% from 5.05%
Anonymous   |     |   Comment #14
I just called Patelco (1/23/080. They will only open a CD if you have funds deposited in the account or if you write a check to them at the time you open the account at their branch office.
Banking Guy
Banking Guy   |     |   Comment #15
From your call to Patelco, was that in regards to opening the CD by phone that they require funds already in your Patelco savings or checking?
procol   |     |   Comment #16
Check your 3 month penalty comment on the Wamu 60 month CD.
If the balance of a Liquid Certificate of Deposit is drawn below the minimum balance requirement or if the principal
from any other type of CD is withdrawn before the Maturity Date, the CD Early Withdrawal Penalty (EWP) will be
calculated at the rate then paid on the CD on the amount withdrawn, whether earned or not, based on the full (rather
than remaining) current term of the CD as follows: CDs with a term of less than 12 months – an EWP equal to 90 days
of simple interest; CDs with a term of 12 to less than 36 months – an EWP equal to 180 days of simple interest; CDs
with a term of 36 months or more – an EWP equal to 365 days of simple interest.
Anonymous   |     |   Comment #17
this is bogus. I opened a CD yesterday at CapitalOne. The interest rate did NOT lock in. Today it shows the current low rate...
Banking Guy
Banking Guy   |     |   Comment #18
About CapOne, I would check with the CSR to see if they can correct this. Let us know if they give you any problems.

procol, thanks for the WaMu correction. I guess the CSR may have just told me the short term CD penalties. I've updated the post with a link to the terms.
Banking Guy
Banking Guy   |     |   Comment #19
About Patelco, here's their reply to my email question about opening CDs:

You may log into your account and select "Open a New Account". This will allow you to select the specifics on your new certificate. Currently there is no limit on the amount that can be transfer via ACH transfer at the time the certificate is opened. If you opt to send a check we must have the check within 10 calendar days.

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