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 February 3, 2012


Survey of the Best CD Rates for February 3, 2012

After the Fed's new late-2014 pledge, I was worried the new month was going to bring a surge of rate cuts. A few banks and credit unions did cut their CD rates, but there weren't as many as I had feared. In fact, PenFed actually raised one of its CD rates. Its 7-year CD yield increased from 2.75% to 2.76% APY. In today's world, a one basis point increase is good news. One thing nice about PenFed is that it typically keeps its rates unchanged for the month. So if you're wanting to purchase a long-term CD, you should have plenty of time at PenFed. However, don't forget that PenFed's 5-year and 7-year CDs have an early withdrawal penalty of up to 1 year of interest (see my PenFed CD review).

A few credit unions did cut rates in February. One disappointment was Melrose Credit Union. Its 5-year CD had a large rate cut falling from 2.68% to 2.27% APY. The 4-year CD rate fell by 10 basis points to 2.07%, and the shorter terms fell by 5 basis points. Even with these cuts, the rates remain competitive. However, since its early withdrawal penalty is so harsh (see review), CDs at other credit unions are better deals.

Credit unions weren't the only ones to cut rates. US Bank reduced its special 59-month CD rate from 2.15% to 2.00% APY.

Local CD Deals

We lost another 3.00% CD this week. NavyArmy Federal Credit Union in Corpus Christi Texas reduced its 30-month CD rate from 3.00% to 2.25% APY. The 3.00% club now includes only 3 institutions with a 3.03% APY 5-year Jumbo CD in El Paso Texas, a 3.35% APY 10-year Jumbo CD in San Antonio Texas and a 3.03% APY 6-year CD in Nebraska.

I added two local deals this week. The first addition was a 2.00% APY 3-year CD at Leominster Credit Union which is available in several counties of MA. The second was a 13-month CD special with a rate up to 1.65% APY at Community Trust Bank which has branches in Dallas/Fort Worth Texas and in several cities of Louisiana and Mississippi.

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 February 3, 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
Colette   |     |   Comment #1
Are banks allowed to reduce the rate on an existing CD? Thank you.
Anonymous   |     |   Comment #2
Why don't you post Fort Knox's 59 mo. CD - 2.3%?
Anonymous   |     |   Comment #3
Greater Hudson Bank with branches in White Plains, Middletown, Warwick and Bardonia, New York has a special 24 month CD rate of 1.75% APY still posted on their site as of 2/4/12.
Anonymous   |     |   Comment #4
IslandFederalCU has a 7m at 1%

Anonymous   |     |   Comment #5
Why has Montauk Credit Union been excluded from the report?