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 July 20, 2012


Survey of the Best CD Rates for July 20, 2012

A few of the bank rate leaders cut their rates this week, but there was also some good news with the addition of two banks. Both Ally Bank and Barclays reduced their 5-year CD rates by 5 basis points. Barclays also reduced rates on its shorter-term CDs. Barclays 5-year CD now has a 1.75% APY compared to Ally's 1.69%. Both have a small early withdrawal penalty, but Ally's is a little smaller which gives it an edge if you close the CD before 3 years. Another option if you don't want to depend on an early closure is Ally's 4-year Raise-Your-Rate CD which provides 2 bump-up options. That yield continues to be 1.49% which is just 20 basis points under the 5-year CD which doesn't have the bump-up option.

Two other banks which cut their 5-year CD rates are US Bank and State Bank of India NY. US Bank's CD is actually a special 59-month CD. That yield fell from 1.80% to 1.65%. The 5-year CD yield at State Bank of India NY fell from 1.86% to 1.81%.

As I mentioned above, not all of the news was bad. I added a new bank to the list. National Bank of Kansas City had some big CD rate hikes this week. Its 5-year CD yield of 2.02% is now the leader for banks with nationally available CDs. Its 4-year and 3-year CD rates are also on top. I verified with the bank today that they still allow out-of-state customers to open CDs. However, its online application is currently not available. So if you can't visit a branch, you'll have to open the CDs by phone and mail.

I also added iGObanking.com to the list with its 13-month and 18-month CDs. Its 1.15% APY 13-month CD is the rate leader for both banks and credit unions for terms around 12 months. Doral Bank Direct used to offer a 1-year CD with a 1.15% APY, but that fell to 1.10% this week. For 18-month CDs, iGObanking.com's 1.20% APY is just under Xceed Financial Credit Union's 1.25% APY 19-month special CD.

Local CD Deals

Two Texas credit unions that have been CD rate leaders had more cuts this week. El Paso Area Teachers FCU used to be one of the 5-year CD rate leaders, but its 5-year Jumbo CD rate has been falling over the last 2 months from 2.98% APY in May to 2.42% APY this week.

The other Texas Credit Union that had rate cuts this week was Randolph-Brooks FCU. Its long-term CD rates fell by 5 basis points. Its Jumbo 7-year CD rate used to be over 3% last year. Now its Jumbo 7-year CD yield is 2.22%.

Another 5-year CD rate cut came from Washington Federal which is a sizable bank with branches in several mid-western and western states. Its 5-year CD rate had remained at or above 2% in 2011 and for most of 2012. Its Jumbo 5-year CD rate fell this week from 1.80% to 1.55% APY.

The only large bank that I know of which is still offering a 2% CD is BBVA Compass which continues to offer a 2.00% APY 5-year CD. It also has good deals on 15-month and 24-month terms.

Like the nationwide CDs, it wasn't all bad news for local CDs. I added 3 new banks. All are short-term deals. The first isn't a CD, but it's a checking account with a 1.20% APY that's guaranteed through 2012. This is offered by Flushing Bank in New York City.

The other two are special 15-month CDs. The first is a CD from TCF Bank which has a 1.10% APY. This special is only available in Arizona and Colorado. The other special CD is from USAmeriBank which has a 1.15% APY. This is available in the Tampa metro area of Florida.

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 July 20, 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
Bozo   |     |   Comment #1
My Mom has both a CD (maturing next week, good timing on that rate increase, let me say) and "silver checking" at National Bank of Kansas City (Leawood branch). She's been with them for quite some time, and is very pleased. When I go back to visit her, I always visit the branch to snag a couple of their free pens.
Anonymous   |     |   Comment #2
I live within a 100 mikes of KC and, as Elwood Blues once famousl  said....."I've got a half-pack of cigaretts and a full tank of gas". So, I think I'll head on up to KC and, although I really don't want any part of their 5yr, 2%" CD's, maybe I can grab on to a couple of those free pens also. :-) 
Anonymous   |     |   Comment #3
Melrose Credit Union has reduced their CD rates effective 07/25.  With the 10-year treasury yield at historic low (1.4%), I think long term CD rates will continue to fall to ridiculously low levels.  I think Under the Mattress is increasingly looking like the best place to park your cash.