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 May 18, 2012


Survey of the Best CD Rates for May 18, 2012

One bit of good news this week was at CIT Bank which increased the rates on its 1-year and 2-year Achiever CDs. The 1-year CD yield increased from 1.08% to 1.10% APY, and the 2-year CD yield increased from 1.20% to 1.25% APY. These are not the highest rates for 1-year and 2-year terms, but they're close to the top. In addition, they have two nice features in that they allow a one-time add-on deposit and a one-time rate bump during the term.

I'm afraid the other news was more typical for this awful interest rate environment. Navy Federal Credit Union cut its CD rates by 10 basis points. It still has the highest 7-year CD rate (2.65% APY). Even though it's nationally available, Navy Federal membership is primarily limited to those with a military connection.

State Bank of India (New York) had the highest 5-year CD rate that's nationally available at a bank, but the yield fell this week from 1.91% to 1.71%. It's now replaced by a new bank to the list, The National Republic Bank of Chicago, which is offering a 1.81% APY 5-year CD.

If you want a 5-year CD rate over 2.00%, you'll probably have to look to credit unions. They continue to offer long-term CD rates much higher than what you can find at banks. The highest 5-year CD yield continues to be 2.25% at Astera Credit Union.

Local CD Deals

There were a few rate cuts this week. Most notable was the cut at Wayne Savings Community Bank in Ohio. It used to be in the 3% club, but it fell out of the club this week after its 10-year CD yield fell from 3.00% to 2.50%. I now have only 3 institutions that are offering 3% CDs. Two are credit unions in Texas, and one is a Massachusetts bank that has a special 3% 5-year CD that isn't that great of a deal since the balance is capped at $25K and it requires an active checking account.

I added one bank to the list that's offering some very competitive long-term CD rates. Crescent Bank & Trust with branches in several Louisiana cities is offering a 2.50% APY 5-year CD. It also has some nice CD specials which include a 2.25% APY for a 44-month term and a 2.20% APY for a 37-month term.

University of Iowa Community Credit Union has added another CD special. This one is a 5-year CD with a top yield of 2.55%. This requires a $250K minimum deposit. The yield is 2.45% APY for a $100K minimum and 2.35% APY for a $1K minimum. The credit union is open to residents in many Iowa counties

For 5-year CDs, I replaced Randolph-Brooks FCU with Austin Telco Credit Union. Randolph-Brooks had another rate cut which took its Jumbo 5-year CD yield from 2.18% to 2.09%. Austin Telco's 5-year Jumbo CD yield remains at 2.17%.

For short-term CDs, I added something that might not seem appropriate for this list. Doral Bank in New York is offering local residents a money market and checking special with guaranteed rates. The money market account has a 1.20% APY that's guaranteed for 6 months, and the checking account has a 1.10% APY that's guaranteed for 12 months. These guarantee periods give these the best attributes of a CD while keeping the liquid features of money market and checking accounts.

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 May 18, 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
Mr. Ferral
Mr. Ferral   |     |   Comment #1
About survey of the best CD rates whatever mentioned here seems to me very informative!! I've enjoyed reading this sharing. Thanks