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 March 2, 2012


Survey of the Best CD Rates for March 2, 2012

The start of March did bring more CD rate cuts. Two all-access credit unions that were long-term CD rate leaders cut their rates this week. Most of PenFed CD rates fell by 25 basis points. Even with these rate cuts, PenFed's 7-year and 5-year CD rates remain competitive. The other credit union that cut rates was Andrews FCU which had been near the top for its 4-year and 5-year CD rates. Both of those CDs had big rate cuts that knocked them off my list.

When PenFed had the top 7-year CD rate, I had included the post-penalty yields of that CD in the shorter-term CD lists. Due to the rate cut, I replaced PenFed's 7-year CD with INOVA Federal Credit Union's 6-year CD. This CD has a 2.50% APY and a reasonable early withdrawal penalty of 180 days of interest. Its post-penalty yields are higher than most of the short-term CD rates. I have more details on this strategy (including the risks) in this post. One downside with this credit union is that it doesn't provide its disclosure online. A reader informed me of some concerns he had with INOVA's disclosure. It's always a good idea to carefully review account disclosures before opening an account.

For the nationally available institutions on my list below, there was one small rate hike this week. Ally Bank increased its 11-month no-penalty CD yield from 0.91% to 0.93%. For those who prefer short-term CDs, it's hard to beat this CD when you factor in the no-penalty feature. It allows the customer to make this CD have any term from 7 days to 11 months.

I added a new bank to the nationwide list. Genesee Regional Bank in Rochester New York is currently accepting out-of-state applications. It has two very competitive variable-rate CDs for terms of 2 and 4 years. The reader me1004 described why they're such good deals and shares his experience of purchasing these CDs in this forum post.

Local CD Deals

There were a few rate cuts on the local deals, but I was pleased to see that most of the institutions held steady with their rates. Two good CD deals that I added were from Start Community Bank in Connecticut. It's offering two very competitive mid-term CD specials: a 1.70% APY 17-month CD and a 1.90% APY 27-month CD.

The number of 3-percent CDs held steady this week. One is a 5-year CD. It's a special CD at Belmont Savings Bank in Massachusetts. The downside of this CD is that it requires an active checking account. To get a 3-percent CD without checking requirements, you'll have to go longer than 5 years. San Antonio Credit Union is still offering a 3.55% APY 10-year CD and a 3.05% APY 7-year CD. Tecumseh Federal Bank in Nebraska continues to offer a 3.03% APY CD for terms of 6 and 8 years. You may be able to find other institutions offering 3.00%+ CDs in our CD rate tables, but those institutions are likely to be small 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 March 2, 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 #2
Customers Bank in Rye, New York has a 12 month CD @  1.75%APY  for NY and CT residents.  Also has a 1.5% money market account.