About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Survey of the Best Local CD Rates for July 1, 2011


Survey of the Best Local CD Rates for July 1, 2011

With the new month, several CD rates on my list did fall from last week. First, for nationally available CDs, there were cuts at both Melrose Credit Union and Quaint Oak Bank. This resulted in Fort Knox FCU and University FCU replacing Melrose and Quaint Oak for the top 3-year CD rates. I also replaced Melrose with University FCU for the 5-year CD. Both have the same yield of 2.83%, but I'm giving the edge to University FCU due to its smaller early withdrawal penalty.

For the local CD deals, some of the noteworthy cuts occurred to the 3-year CD at Security Service FCU and the 4- and 5-year CDs at Bayer Heritage FCU. Fortunately, the 5- and 7-year CD rates remained the same at Security Service FCU. The 3-year CD rates went down by 35 basis points which pushed the CD off my 3-year list.

In addition to cuts, some CD specials ended in June. Those hot CD specials in Rochester New York at Visions FCU have expired. South Florida FCU has long been offering a special 1.50% APY on its 12-, 18- and 24-month CDs. Early this week, it was advertising a limited time special with even higher rates, but it proved to be a very limited time, and it's no longer listed at the credit union's website.

With South Florida FCU no longer offering its CD specials, this leaves Coastline FCU as the only Florida institution on my list. Florida is one of the states where it's especially hard to find competitive CD rates. Arizona and Nevada are also in this group.

Not all of the changes were rate cuts or removals. University of Iowa Community Credit Union, increased its special 25-month CD rates. For a $1K minimum, the yield increased from 2.10% to 2.25%. It also added another rate tier. In addition to a rate bump for a $100K deposit, there's now a $250K tier. The extra 15 basis points for a $100K minimum is now 10 basis points, and the $250K tier has a 20 basis point bump. I was surprised we haven't seen more of these $250K tiers since the increase of the standard deposit insurance limit from $100K to $250K. Remember there are several ways to increase your FDIC & NCUA coverage over $250K.

I also added 3 short-term CDs from First Choice Bank in Southern California, a 4-year CD from UniBank in Massachusetts and a 5-year CD at Meritrust Credit Union in Kansas. These two long-term CDs both have a 3.00% APY.

Best Nationwide CD Rates

So you can see how the local rates compare, I'm including a few of the best CD rates that are available nationwide. These are often from credit unions which anyone can join via an association. I'm also including more than one CD for each category. For example, Connexus Credit Union has 3 best CD rates, but these require an active checking account. Since many don't want to worry about maintaining another checking account, I'm including another CD without any checking requirement. And I'm including Ally Bank's 5-year CD for many of the short-term CDs. As I described many times, this can be a better deal than short-term CDs due to the 60-day early withdrawal penalty. I've included a link to a discussion of this strategy that describes the potential risks.

Using the Rate Tables to Find the Best Local CD Rates

As I described in my rate table overview, you can use our CD rate tables to find the best local CD rates. One thing that complicates looking for local rates is that it can be hard to know the areas served by small banks and credit unions. So in my list below, I primarily focus on banks and credit unions that serve large regions or large metro areas. My criteria is that they offer rates higher than the nationwide equivalent CD. If the rate is high enough, I'll also mention a bank or credit union even if it's not in a large populated area. These aren't hard rules. They're just general rules to keep the list manageable and useful.

Yields Accurate as of 7/01/2011

Under 1-Year CD Rates

  • Noteworthy Local Deals

1-Year CD Rates

  • Noteworthy Local Deals

18-month CD Rates

  • Noteworthy Local Deals
  • Focus Bank - 1.61% 19-month CD (online application for MO, AR, KY, TN & parts of IL)
  • First Choice Bank - 1.60% ($50K) 1.50% ($2.5K) 18-month CD (Los Angeles & Orange County, CA)
  • Alaska USA Federal Credit Union - 1.60% ($100K) 1.40% ($10K) 18-month CD (San Bernardino County, CA; parts of WA & AK)
  • Industrial Credit Union - 1.60% 18-month CD (Boston metro area)

2-Year CD Rates

  • Noteworthy Local Deals

3-Year CD Rates

  • Noteworthy Local Deals

4-Year CD Rates

  • Noteworthy Local Deals

5-Year CD Rates

  • Noteworthy Local Deals

Over 5-Year CD Rates

  • Noteworthy Local Deals

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

Related Pages: CD rates
Anonymous   |     |   Comment #2
Yes, I think they are kidding.  Who would want a 5 yr cd at 1.76?  I can't imagine there is anyone who takes them up on the offer.