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 January 27, 2012


Survey of the Best CD Rates for January 27, 2012

There were a few CD rate cuts this week, but considering the Fed's new late-2014 low-rate pledge, it could have been worse. Discover Bank reduced its 10-year CD yield from 2.50% to 2.45%. This remains the highest nationally available bank CD rate in the nation. For all-access credit unions, PenFed continues to be on top with its 2.75% APY 7-year CD. PenFed will come out with new rates for February next Wednesday. I wouldn't be surprised if this rate falls.

Local CD Deals

There were a handful of banks and credit unions that cut their CD rates this week. On the plus side, I added two credit unions. One addition is Miami Postal Service Credit Union in the local CDs for terms under 1-year. Its Jumbo 9-month CD has a very competitive 1.26% APY. It's a small Jumbo CD which requires only a $25K minimum deposit. Many Southeast Florida residents should be able to qualify to join this credit union.

The other new credit union that I added this week is Our Community Credit Union in Washington State. Its 1-, 2-, 3- and 4-year CD rates are all very competitive. Anyone who lives, works or attends school in Washington State is eligible to join the credit union.

There continues to be four institutions in the 3.00% club. These are credit unions and banks that offer CD yields of at least 3.00%. Three are Texas credit unions, and one is a Nebraska bank. You can find a few other institutions in our rate tables with 3.00%+ CDs, but these are small credit unions with very narrow fields of membership or small banks in low populated areas.

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.

The risks of planning for early withdrawals of long-term CDs was recently highlighted by another credit union which raised the early withdrawal penalty on existing CDs. The credit union is CEFCU which is based in Illinois. I have more details in this blog post. CEFCU is now the second credit union which has raised the early withdrawal penalty on existing CDs. Last year Fort Knox FCU did the same thing (see my blog post).

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 January 27, 2012

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
Goldman Sachs Bank also continues to offer a 3.00% ten year FDIC insured CD.
KenBDG   |     |   Comment #2
Thanks for the info on Goldman Sachs CD. Isn't that a brokered CD? I see it's being offered through Vanguard.
Anonymous   |     |   Comment #3
If that is a brokered CD, I do hope you know one better be willing to hold on to it for the full 10 years.  You don't just get to pay an EWP and walk away with a good bit of your principal.  It has to be sold on the secondary market and you only get the going rate for it at the time.  I use brokered CDs for our IRAs but nothing else.
Anonymous   |     |   Comment #4
It is brokered, but for those stuck in the mindset of only "investing" in deposit accounts it's worth considering the 3% over the "top" 2.5% CD.  You don't always have to sell for a loss, esp if rates go down even further (which doesn't seem likely, but I bet you thought that a year ago too).
lou   |     |   Comment #5
Many of these brokered CD's aren't liquid, meaning there are no bidders to buy them when you need to sell. I suppose you could get someone to bid, but you probably won't like the price.
Reginald   |     |   Comment #6
Someone just told us that some State of Israel bonds are presently paying a fixed rate of 3.55% for 10-year bonds.  Not a bad rate these days, and they send regular interest checks to the bondholders.  Has anyone looked into this or have experience with this?
Anonymous   |     |   Comment #7
Your rates for Ally seem to out of wack.
KenBDG   |     |   Comment #8
@anonymous #7, please note that I include some long-term CDs that are closed early in the short-term CD lists. I clearly note this after the rate [for example: Ally Bank - 1.49% (1.79% 5-year CD closed after 1 year, see review & risks)]

Bozo   |     |   Comment #9
As noted in another thread (and over at Bogleheads), Vanguard's brokered CDs do NOT compound interest. Interest on their brokered CDs is paid as credited, to your bank account or to your Vanguard money market fund, it is not compounded back into the CD. This entails a certain amount of re-investment risk, similar to interest from bond coupons. Just be aware of what you are buying.