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 September 28, 2012


Survey of the Best CD Rates for September 28, 2012

This last week of September was quiet with few CD rate cuts, at least with the rates that I monitor in this survey. We may see more next week with the start of October. Credit unions often change rates at the start of a new month. Also, it has been just over two weeks since the Fed announced major new actions. So that may influence the rate cuts.

For the CDs that are available nationwide, the only rate cut was on the 10-year brokered CD that's available through Fidelity. That rate fell from 2.50% to 2.45%. I started including the 10-year brokered CD a couple of months ago since it offers a higher rate than what's directly available from banks and credit unions. This 10-year term is the only one that's currently better. For shorter terms, the direct CD rates are higher.

If you prefer a CD that's directly available from a bank or credit union, I added a new credit union to the nationwide list. It's Air Force Federal Credit Union, and it now makes it easy to qualify for membership via an association. The credit union currently offers the best 7-year CD rate that's nationally available with a 2.25% APY for a $100K minimum deposit. I have more details in my review of Air Force FCU and its CDs.

The best long-term bank CD deal continues to be at Discover Bank. I did an updated review this week of its 2.00% APY 7-year CD and its 2.10% APY 10-year CD.

I continue to have 4 all-access credit unions with a 2% 5-year CD. The highest 5-year CD yield at a bank continues to be 1.90% at CIT Bank.

You can still get a 2.00% APY 5-year CD at BBVA Compass, but this isn't nationally available. You have to live in the market areas where Compass has branches. These are in AZ, CA, CO, NM, AL, FL and TX.

If you prefer short-term CDs, I'm afraid you're not going to find rates much higher than internet savings account rates. The main advantage with the CDs is that you won't have to worry about rate cuts until maturity. For terms under 1-year, the best deals continue to be the 6- and 9-month CDs at Doral Bank Direct and the 11-month No Penalty CD at Ally Bank.

For mid-term CDs, one of the best deals continues to be at CIT Bank which offers a 1.10% APY 1-year CD and a 1.25% APY 2-year CD. These offer a one-time add-on deposit option and a one-time rate bump-up option. I have more details in my CIT Bank CD review.

Local CD Deals

There were only a few rate cuts on the local deals this week. All of the cuts were on the long-term CDs. As I described before, the largest rate cuts this year have been on long-term CDs, and this trend continues.

Two credit unions in the Northeast cut their long-term CD rates. The first was at LOMTO Federal Credit Union in New York City. Its 5-year CD yield fell from 2.35% to 2.20% APY which remains a very good deal. The other Northeast credit union is Merrimack Valley Federal Credit Union, and it slashed its 5-year CD yield from 2.30% to 1.95% APY.

Another institution that slashed its 5-year CD yield is Cole Taylor Bank in Chicago. Its standard 5-year CD yield fell from 2.00% to 1.35%. This is too low for my list, so it's no longer shown here.

Finally, Frontier State Bank in Oklahoma slashed its 10-year CD yield from 2.42% to 2.02% APY.

I did add one new institution to my local lists this week. Habib American Bank is having a new-branch special at its New Jersey branch with two competitive short-term CD rates: 1.10% APY for 6 months and 1.20% APY for 12 months. I have more details in my review of this deal.

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 September 28, 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
HDH   |     |   Comment #1
Sovereign Bank is offering a 1.20% 18 month CD. In order to get the CD rate, however, you have to open a premier banking checking account and maintain a combined balance of $20,000 between the CD and Checking account. The CD can be opened online or over the phone. I opened mine in person in New York City.

I also took advantage of the LOMTO one year CD since I live on westside in New York City. The bank services taxi drivers, but LOMTO's New York City branch is in very high rent district next to a Donald Trump luxury building on westside. It was easy to open the CD.