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 CD Rates for August 5, 2011


Survey of the Best CD Rates for August 5, 2011

There were quite a few CD rate cuts in the last two weeks. Last week before the debt ceiling deal, there was speculation that CD rates may actually rise due to Treasury yields being forced up from the possibility of the U.S. defaulting. With the passing of the debt ceiling deal and the crashing stock market, Treasury yields have actually plummeted. So I'm afraid CD rates will likely continue their downward trend.

For nationally available CDs, Ally Bank just cut its 5-year CD rate by 2 basis points. The 5-year APY is now 2.30%.

For short-term CDs, Bank of Internet cut its 12-month and 6-month CD rates. The 12-month CD APY fell from 1.33% to 1.20% and the 6-month CD APY fell from 1.15% to 1.01%. Since these new rates are no longer top rates, I've removed BofI from my list.

Update: iGObanking.com cut its 10-year CD APY from 3.50% to 3.25% right after I first released the blog post this morning. The good news is that iGObanking.com continues to offer its 3.50% APY 10-year CD. Also, several credit unions have maintained their CD rates into August. These include Alliant, Melrose, Fort Knox and Self-Help.

Even with the latest rate cut, Ally Bank's 5-year CD continues to be a good deal compared to short-term CDs due to Ally's mild early withdrawal penalty. For terms longer than 12 months, iGObanking's CD beats Ally on this long-term CD strategy. iGObanking's 10-year CD has a 3.25% APY and an early withdrawal penalty of only 6 months of interest. This is larger than Ally's 2-month interest EWP, but the higher rate becomes more important than the small EWP for closures after 1 year. I did a comparison of these CDs and discussed the risks of this long-term CD strategy in my iGObanking vs Ally CD review.

Local CD Rate Changes

There were several banks and credit unions which cut rates or ended CD specials in the last two weeks. I'll just highlight some new local CD deals and some old ones that are still very good deals.

Signature Bank in the New York City metro area has very competitive rates on its 2-year, 3-year and 5-year CDs. Its 5-year CD APY of 3.04% is near the top of my list.

HAPO Community Credit Union in Washington State is offering competitive short-term CD rates with a 1.35% APY 1-year CD and a 1.25% APY 6-month CD. The credit union allows anyone in WA to join.

Several credit unions maintained their CD rates into August. One noteworthy one is Wings Financial Credit Union which is offering a 1.81% APY 2-year CD and a 2.73% APY 5-year CD. Another one is Alaska USA Federal Credit Union which allows anyone in San Bernardino County, California to join. It continues to offer very competitive Jumbo CD rates for terms of 18 months, 24 months and 60 months. One final noteworthy credit union that maintained its CD rates into August is Police & Fire Federal Credit Union. It's still offering a 3.00% APY 5-year CD. Anyone in PA can qualify for membership by joining an association.

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. The Friday blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The Friday blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but many of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available for an entire state.

Yields Accurate as of Aug 5, 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) 541-day 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)
  • Chasewood Bank - 1.51% ($100K) 1.41% ($1K) 18-month CD (Houston)

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.

Edit 1:12pm EDT iGObanking.com reduced its 10-year yield from 3.50% to 3.25% after the first release of this blog post this morning. The above rates have been adjusted for the new 3.25% APY.

Related Pages: CD rates
Anonymous   |     |   Comment #1
Alas!    Just when you think things couldn't get much worse, they actually do.  Thanks for allo the info.
bobert   |     |   Comment #2
I called IGOBANKING and it appears their rates have changed as of today.  The 10 year rate is now listed on the web site at 3.20% with 3.25% APY.
KenBDG   |     |   Comment #3
@bobert, Thanks for alerting me of this change. It looks like iGObanking cut the rates after I first released the post. I've updated the post with the lower iGObanking CD rates.

chimay palmer
chimay palmer   |     |   Comment #4
when will the bank failure list be ready
InventPeace   |     |   Comment #5
Unless I'm wrong, I would be afraid of any internet bank system,  I feel alot more comfortable (safe) with a "brick and mortor" building within 5-30 miles of home.
ip xs2
ip xs2   |     |   Comment #8