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 December 30, 2011


Survey of the Best CD Rates for December 30, 2011

As we end 2011, CD rates continue to trend down. The latest rate leader to cut rates is Digital Credit Union (DCU) which reduced all of its CD rates by 25 basis points. Even with the rate cuts, DCU's Jumbo 5-year CD remains near the top of the nationally available 5-year CD list. Its new yield is 2.60% with a relationship or 2.35% without. Melrose Credit Union's 2.68% APY 5-year CD now holds the top spot for the highest nationally available 5-year CD rate. US Bank continues to hold the top spot for banks with a 2.25% APY for a special 59-month term.

We may see many rate changes next week as institutions update their rates for the new month. Not all may be rate cuts. In past Januarys, PenFed has come out with CD specials. Unfortunately, I haven't heard of any for this January. However, a reader commented that he was told by a PenFed CSR that they will be offering a new 10-year CD in January with a 3.00% APY. I was not able to confirm this with either my PenFed contact or with two different PenFed CSRs. We should soon know if this is true when PenFed releases its rates for January. PenFed had originally planned to offer 10-year CDs to all members last January. For some reason, PenFed decided against it. The only 10-year CDs that came out were special CDs offered to some members with maturing CDs.

I added two short-term CD deals to my nationally available list this week. KeySource Commercial Bank is offering a special 1.15% APY 7-month CD and a 1.20% APY 1-year CD. I confirmed with the bank this week that people in any state can open these CDs via their online application. It's a small bank, so these might not last long.

Local CD Deals

There weren't many changes to my list of local CDs this week. I added one short-term CD deal being offered by First Entertainment Credit Union which is open to those in the Los Angeles metro area. It's a special 2.00% APY 4-month CD. Unfortunately, there's a maximum deposit of $25,000 per member so you can't make much money from this CD (see my review).

In today's environment when rate hikes appear unlikely for at least another 18 months, going long with CDs make more sense in my opinion. Unfortunately, even long-term CDs yields are disappointing. It's very hard to find any CDs these days with yields of at least 3.00%. I only have four local CDs in my list that offer at least 3.00% APY. Three of these are in Texas, and one is in the Philadelphia metro area.

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 penalty, it's still a good deal when closed early even with the recent rate cuts.

Since the early withdrawal penalty of Digital Credit Union is only 6 months of interest, this makes its 5-year CD a good deal for short terms. Ally Bank's 1.79% 5-year CD is still the best deal for 6, 12 and 18 months. However, Digital's 2.35% APY 5-year CD (2.60% with relationship checking) becomes a better deal when it's closed at 24 months or later.

As we learned in September, 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. This CD survey 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 CD survey 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 December 30, 2011

Under 1-Year CD Rates

  • Noteworthy Local Deals
  • First Entertainment Credit Union - 2.00% 4-month CD special ($25K max) (Los Angeles metro)
  • Alma Bank - 1.35% 12-month Liquid CD requires active chk (New York City)
  • University of Iowa Community Credit Union - 1.30% ($250K) 1.20% ($100K) 1.10% ($1K) 10-month CD (several parts of Iowa)
  • Veridian Credit Union - 1.20% ($100K) 1.00% ($1K) 7-month CD (several parts of Iowa)
  • First Choice Bank - 1.05% ($50K) 1.00% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
  • 1st Commonwealth Bank of Virginia - 1.00% 3-month CD special (Washington DC metro)
  • CapitalSource Bank - 0.95% 5-month CD (California)
  • American Plus Bank - 0.95% 6-month CD (Los Angeles metro)
  • Industrial Credit Union - 0.90% 6-month CD (Boston metro area)

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
Mary   |     |   Comment #1

Happy New Year to you and yours.  We LOVE your site in the Twin Cities area.  I have had good success with Cap One/Costco's 10-year CD's for Costco members.  The 10-yr. APY is 2.55% if I recall right, not bad these days.  Cap One is a very nice institution to deal with.  We had a 10-day power outage here a few winters ago, no mail delivery or movement of mail, and they held a CD rate for me as a courtesy (my CD was maturing during that period).  A-plus customer service in my opinion. Now that 2.55% seems decent, and I also am in favor of going long.


Mary   |     |   Comment #2
Forgot to add, Cap One will also give you either $20 or $60 lump sum cash when you open a Costco CD as an incentive, depending on your classification of membership with Costco.  Nice.


Mary   |     |   Comment #3
Another point- Cap One is a bank, not a cu, for those for whom that matters. An in my opinion, they are very solid and stable.


Apache   |     |   Comment #5
Only $3000.00!!  How did Jesus get involved in your ploy?  I guess all the Jewish people and "others" don't need to send you anything. Thanks for the laugh!
Anonymous   |     |   Comment #6
To kelvin gilead - #4,

Now Interpol and FBI know your account number and the bank.

Wait to be arrested soon, as you walk to your bank to check the balance.

lou   |     |   Comment #7
Funny! I get these emails ocassionally and have always wondered if there is anyone really that stupid to actually send the money.
Apache   |     |   Comment #8
Lou:  I can't believe there is anyone who would actually believe that is his "real" account number!  Then again.......
Anonymous   |     |   Comment #9
Lou would believe it.