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 October 14, 2011


Survey of the Best CD Rates for October 14, 2011

I was hoping the CD rate cuts would slow down once the first week of October had past, but there were quite a few cuts in this second week of October. Ally Bank's 5-year CD had yet another rate cut. In the last week the yield has fallen from 2.03% to 2.00%.

Several credit unions also reduced rates this week. Two of the all-access ones that had been rate leaders had rate cuts. Velocity Credit Union's 5-year CD yield fell from 2.62% to 2.32% and its 3-year CD yield fell from 1.91% to 1.71%. Firstmark Credit Union's 5-year CD rates fell 10 basis points. Its Jumbo 5-year CD yield is now 2.75%.

In addition to the all-access credit unions, there were a few of the large regional credit unions that cut rates this week. These included Wings Financial and Randolph-Brooks.

The credit unions continue to have much better rates than the banks. This is especially the case for the 5-year CDs. The all-access credit unions have yields over a half of a percentage point above the best bank CD yield that's nationally available. That best 5-year bank CD rate is now 2.20% APY at First Internet Bank. Last week it had been 2.25% APY at 5 Star Bank, but that yield fell to 1.95% this week.

The internet division of MainStreet Bank in Virginia, Airbanking, continues to hold the top spot for the nationally available 4-year bank CD with a 2.00% APY. I also added Airbanking to two of my shorter-term CD lists. Airbanking takes the top bank spot for a 1-year term with a 1.16% APY. Also, its 12-month No-Penalty CD (1.06% APY) takes the lead against Ally's 11-month No-Penalty CD (1.01% APY). Since no-penalty CDs can be ended early at any time without a penalty, it's fair to compare these with any shorter term CDs.

For the best long-term CDs with mild early withdrawal penalties, I've replaced Velocity Credit Union with Digital Credit Union. Both of their 5-year CDs have an 180-day interest early withdrawal penalty. With Velocity's 30-bps rate cut, Digital's 5-year CD now has the best combination of high yield and low early withdrawal penalty even without the extra 25 bps from the relationship checking. This is what I used to derive the yields when the CD is closed early. As you can see below, Ally's 5-year CD has better post-penalty yields before 2 years. This is due to Ally's small early withdrawal penalty of 60 days of interest. However, at 2 years, Digital's higher yield has more effect, and Digital's 5-year CD becomes the better deal.

As we learned last month, there is some risk that the bank or credit union may increase the early withdrawal penalty on existing CDs (see my post on a credit union that was allowed to raise the EWP on existing CDs).

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 in large areas of a state.

Yields Accurate as of October 14, 2011

Under 1-Year CD Rates

  • Noteworthy Local Deals

1-Year CD Rates

  • Noteworthy Local Deals

18-month CD Rates

  • Noteworthy Local Deals
  • Alaska USA Federal Credit Union - 1.60% ($100K) 1.40% ($10K) 18-month CD (San Bernardino County, CA; parts of WA & AK)
  • First Choice Bank - 1.50% ($50K) 1.45% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)
  • Department of Commerce FCU - 1.45% 18-month CD (Washington DC)
  • Focus Bank - 1.31% 19-month CD (online application for MO, AR, KY, TN & parts of IL)
  • HAPO Community Credit Union - 1.30% 18-month CD (WA State)
  • Industrial Credit Union - 1.25% 18-month CD (Boston metro area)
  • Peoples Federal Savings Bank - 1.25% 18-month CD (online application for MA only)

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
Patient saver (aka ns4me)
Patient saver (aka ns4me)   |     |   Comment #1
With costs going up, COLA kept at a minimum per the BLS, rates kept down per Bernakapart, savers are either forced to dig into their savings to keep up or go out too far for what its worth interest wise, esp if they find that their SS isn't keeping up and they need and have to get their hands on the money they locked up for 5 to 10 years @ 2%. or they get talked into some markeeet scheme by some "investment" adviser in their bank that of course has only their interests at heart, smirks, while looking to soak them even more per the fee's or commissions.

Yesterday is a memory.Tomorrow is a hope. There is no escape and there is no way out.So I will continue as I have until I can’t.The sun still shines, the birds still sing, today is still good .  I will change the things I can . accept the things I can’t, and hope to have the wisdom to know the difference. After all, on a long enough time line we are all dead.

Who knows when the whole system implodes on to itself.  My goal has been and will be to maintain my principal, as long as I possibly can. The motto I made up long ago was

"Give me the strength to die without fear"
Paoli   |     |   Comment #3
Patient Saver:  I think we should add your last line "Give me the strength to die without fear" to the regular "Serenity Prayer" you quote.   If we let our fear control us, we won't have the emotional strength to seek out those CDs paying the interest we need to survive.  I like your last line.  Have a good day!
pearlbrown   |     |   Comment #5
I agree with #1,3,4.  Sometimes when fear is in control it paralyzes us and we give up trying to find good deals which may be available.  At other times it leads us to become obsessed and to spend such exorbitant amounts of time on financial matters that we neglect and forget to cherish all the essentials in our lives like faith, family, friends, and health.  Balance is everything and it’s important to maintain both principal and principles.  Life can (and does) change in the blink of an eye and on some timeline we are all dead.   I like the idea of adding that last line, and would amend it to “ Give me the strength to die without fear or regrets“.