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 23, 2012


Survey of the Best CD Rates for March 23, 2012

Another top long-term CD rate fell this week. Discover Bank reduced its 10-year CD yield from 2.45% to 2.25% APY (2.30% for AAA members). Earlier this month, both PenFed and Navy Federal Credit Union cut their 7-year CD rates. It's getting harder to find decent rates even for the very long terms.

On the positive side, the vast majority of the CD rates on my list held steady this week. Also, I added three institutions to my nationwide 5-year CD rate list.

Air Academy Federal Credit Union has become the leader of my nationwide 5-year CD rates with a 2.45% APY. However, it's not completely nationwide since its primarily limited to military and military families (see my credit union review).

Dime Savings Bank has the top nationally available 5-year CD rate from a bank. It has a 2.25% APY, but the catch is it's only available as an IRA CD.

I added one institution that is truly nationally available. It's Agriculture Federal Credit Union. Its 5-year CD rate isn't the best at 2.05% APY, but the CD and the credit union have some nice features as I described in my review.

Local CD Deals

We lost another 3-percent local CD deal this week. Tecumseh Federal Bank in Nebraska reduced its 6-year and 8-year CD yield from 3.03% to 2.52% APY. However, I added a new 3-percent CD. Wayne Savings Community Bank in Ohio is offering a 3.00% APY 10-year CD.

For short-term CDs, there's a good CD deal that's available in parts of Massachusetts. Quabbin Online Credit Union is offering a 2.25% APY 6-month CD. Maximum deposit is $100K.

First American Credit Union hasn't changed its rates, but it has held its CD rates steady for so long that I thought it was useful to highlight it. The top rates include a 2.52% APY 5-year CD and a 1.76% APY 3-year CD. These require a $50K minimum deposit. Readers have reported that membership is open to anyone in Arizona and New Mexico.

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 23, 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
This makes no sense --things are getting better, The 10 yr treasury yield has gone up quite a bit from it's lows, and banks are bringing down int. rates on CD's? I mean at least stabalize them, but bringing them down? All the old ways of economics seem out the window. Too bad. Most Americans put their money in the bank to grow----and this has been taken away.
Anonymous   |     |   Comment #2
My credit union (Hudson Valley Federal) made $25M in net income last year while only paying out $29M in interest to savers.  And it is still lowering rates.  This makes no sense.   They could have afforded to almost double what they paid savers last year.  By the way, in 2008, they paid out $58.6M in interest to savers and only had $2.1M in net income.  A disturbing trend indeed - interest cut by 50%, income increased by 1200%!  Something is wrong with this picture. 
Anonymous   |     |   Comment #3
I was alerted to the First American Credit Union on this site.  Upon calling them I learned they hadn't changed their rates in 2 years!  In February I opened some 5 year CDs all done by mail.  The customer service rep I dealt with named Monika is very helpful, always calling me back or answering my emails. Their online presence is not too advanced though.  The early withdrawal penalty is not bad at only 3 months interest.  One thing that I was disappointed in is that you cannot change your decision about how to receive the interest once the CD is opened such as letting it ride or having it paid to you.  Aside from that, I am very happy with their service and would highly recommend them.