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 November 19, 2011


Survey of the Best CD Rates for November 19, 2011

One disappointment this week was the CD rate cuts at Alliant Credit Union. CD rates on all of its terms fell by 20 basis points. For some of the terms, this was the first rate cut for 2011. Even with the rate cuts, the 18-month and 24-month CD rates remain near the top of the lists with yields of 1.35% and 1.50%.

Another disappointment was at Ally Bank which cut its 5-year CD rate again. It seems this rate has been going down a little almost every week. This week it fell from 1.89% to 1.88% APY.

Not all of Ally Bank rates fell this week. Its 1-year CD rate went up by 5 basis points to 1.05% APY, and its 11-month No-Penalty CD rate went up from 0.95% to 0.99% APY. If you prefer short-term CDs with terms under 1-year, it's hard to find a better deal than this 11-month No-Penalty CD. The no-penalty feature allows you to make the term to be anything you want from 7 days to 11 months.

I had been hoping to add iGObanking.com to the list. On Monday I posted on its new higher 5-year and 3-year CD yields of 2.25% and 1.70%. These didn't last. On Friday, the yields fell to 1.75% and 1.25%. As I mentioned in my iGObanking CD review, the bank has a history of making big changes on its rates, but in the past the promotional rates had held for a longer time.

Not all institutions with promotional CD rates have ended the promotions early. One has just extended the end date of its promotional CDs. Velocity Credit Union has pushed out the end date its three special CD rates from November 21st to November 30th. These three special CD rates are near the top for nationally available CDs with terms of 2, 3 and 5 years. There's an online application, but you have to be careful to ensure you get the promo rates and not the standard rates. I have more details in my latest Velocity CD review. Velocity is a credit union that makes it easy for anyone to join via an association membership. It's one of many credit unions on my new list of credit unions open to all.

If you prefer a bank over a credit union, you will likely have to settle for much lower rates especially for long-term CDs. The best nationally available 5-year CD rate at a bank continues to be at US Bank with a 2.25% APY. This is US Bank's special CD, and the term is just under 5 years (59 months). As you can see in the list below, you can get a much higher rate at both Velocity Credit Union and Melrose Credit Union. Another downside with US Bank is that it's on my list of inflation dangerous banks since its disclosure gives the bank the right to refuse an early withdrawal. On top of that, it has a harsh early withdrawal penalty (see my US Bank CD review).

Local CD Deals

In Texas, CD rates were cut again at Randolph-Brooks FCU. Its highest rate CD (7-year term with a $75K minimum) fell below 3.00% APY this week. It's now 2.99% APY. Another credit union to fall out of the 3.00% club is Security Service FCU. Its 7-year CD yield for a $100K minimum fell from 3.00% to 2.90%.

There were actually some new additions to the 3.00% club. Two credit unions in Southeast Texas are offering mid-term CD yields of around 3.00%. NavyArmy FCU came out with a 3.00% APY 30-month CD, and Gulf Coast CU increased its 3-year CD rate to 3.05% APY. Both credit unions are open to residents in the Corpus Christi metro area. It looks like they are in competition with each other. I wish we could see this type of competition in other parts of the country.

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied. Since Ally Bank's 5-year CD only has a 60-day interest EWP, it's still a good deal when closed early even with the recent rate cuts.

Since Velocity's early withdrawal penalty is only 6 months of interest, this makes Velocity's 5-year special CD a very good deal for short terms. Ally Bank's 1.88% 5-year CD is still the best deal for 6 and 12 months. However, Velocity's 2.83% APY 5-year CD becomes a better deal when it's closed after 12 months.

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 most 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 November 19, 2011

Under 1-Year CD Rates

  • Noteworthy Local Deals

1-Year CD Rates

  • Noteworthy Local Deals

18-month CD Rates

  • Noteworthy Local Deals

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 #1
Thanks as always! There seems to be a mini-boom in Texas. Oil business?
Bozo   |     |   Comment #3
The difference between Alliant's garden-variety savings and that 24 month CD is darn near mattress money. I was going to buy it in January when a current 2-year matures. Now, I'll probably just plop it in the savings and see if a special pops up.
Anonymous   |     |   Comment #4
then wh not a velo city  cd just my dos centavos