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 4, 2011


Survey of the Best CD Rates for November 4, 2011

It was another round of rate cuts as the new month started. However, most of the rate leaders on the nationwide lists held steady with their CD rates. These included Alliant Credit Union, Melrose Credit Union, Digital Credit Union and Pentagon Federal Credit Union. Even Ally Bank kept its 5-year CD rate the same. This is the first week in a while that Ally hasn't cut its 5-year CD rate.

The highest 5-year CD rate that's nationally available continues to be 2.86% APY at Digital Credit Union. Minimum deposit is $25K minimum, and a relationship checking account is required. Without the checking requirement, the best 5-year CD rate is 2.75% APY at XCEL Federal Credit Union. This has a $250K minimum deposit (2.65% APY for a $20K minimum).

The highest 5-year CD rate at a bank that's nationally available continues to be 2.25% APY at US Bank. It's actually a special 59-month term. I reviewed this CD on Monday. As I described in this Monday post, it's important to know the downsides of this CD such as the harsh early withdrawal penalty.

Local CD Deals

For the local CDs, many banks and credit unions across the nation cut their CD rates with the start of November. On the east coast, CD rates were cut by Industrial Credit Union, City of Boston Credit Union, Third Federal and Coastline FCU.

In Texas, CD rates were cut at Randolph-Brooks FCU and at SACU. Even with the rate cuts, Randolph-Brooks holds the top spot with the highest CD rate in the nation with a 3.14% APY for a 7-year term.

On the west coast, CD rates fell at HAPO Community Credit Union in Washington State. In California, CD rates fell at First Choice Bank and at Pasadena Service Credit Union.

There was a little bit of good news on the local CDs. Institution for Savings in northern Massachusetts is having a special 3-year CD with a 2.50% APY. This is only for their Ipswich branch (see review).

University of Iowa Community Credit Union changed its 25-month CD special into a 19-month CD special, and the rates remained the same: 1.80% APY for a $250K minimum, 1.70% APY for a $100K minimum and 1.60% APY for a $1K minimum.

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.

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).

Another risk is that the institution will make use of a clause in its disclosure to disallow an early withdrawal request. That's another downside with US Bank. According to its disclosure, a "withdrawal prior to maturity will be permitted only with the consent of the bank which may only be given at the time of withdrawal." I have more details in my post Risks and Benefits of Long-Term 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 4, 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