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 October 19, 2012


Survey of the Best CD Rates for October 19, 2012

This was another week with few CD rate changes. Ally Bank cut its 5-year CD rate again. The yield was reduced from 1.69% to 1.66%. I still keep Ally Bank's 5-year CD on the list due to its small early withdrawal penalty of only 60 days of interest. There are several 5-year CDs from other banks with higher rates.

The best nationally available 5-year CD yield is still 2.00%. This is available from 5 all-access credit unions. One all-access credit union fell out of this club. Eli Lilly Federal Credit Union ended its special 2% 5-year CD. The yield is now only 1.41%, so it's no longer listed below. On the plus side, I added Pinnacle Federal Credit Union to this 2% club. Anyone can qualify for Pinnacle membership by joining the American Consumer Council. One downside is that Pinnacle doesn't have an online application. If you don't live near a branch, the application must be sent by mail.

I also added a bank to the 2% club. Citizens State Bank in Florida recently added an online application that allows people from any state to apply for its CDs. The 2.00% APY for 5-years requires a $100K minimum deposit. The yield is 1.85% for a $1K minimum. This bank also offers competitive rates on its 2-, 3- and 4-year CDs. One downside with this bank is a large early withdrawal penalty. I have more details in my Citizens State Bank CD review.

If 60 months is too long for you, Salem Five Direct has a good deal on a 30-month CD. It increased the yield on this special CD from 1.25% to 1.50% APY. Since I don't list rates for 30-month CDs, I'm including this in the 3-year CD list. As you can see below, this 30-month CD rate tops most of the 3-year CD rates.

Local CD Deals

There were only two noteworthy rate cuts for the local deals this week. SECNY Federal Credit Union in Central New York reduced its CD rates by 10 basis points. Its Jumbo 5-year CD yield of 2.20% remains very competitive.

The other rate cut was at TCF Bank in Arizona and Colorado. It wasn't actually a cut, but instead it changed its CD special for these two states. TCF Bank had been offering a special 1.10% APY 15-month CD. That has been changed to a 0.90% APY 13-month CD. That's a little too low for list so TCF Bank has been removed.

If you live in Arizona or Colorado, you can get a better short-term CD rate at BBVA Compass. It still offers a special 1.00% APY 15-month CD. Its longer-term CD specials are even better deals with a 1.25% APY 2-year CD and a 2.00% APY 5-year CD. In addition to AZ and CO, these CDs are available in many parts of CA, NM, AL, FL and TX.

I added two new deals to my local CD lists. First is a 1.51% APY 1-year CD that's being offered by Central Missouri Community Credit Union. Unfortunately, it's not available to many people. You have to live or work in one of a few counties in Central Missouri.

The other local deal is a 1.60% APY 2-year CD at Patriot Community Bank. This is a small bank with one office in the Boston suburbs.

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 October 19, 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
CD Rates down again now Bay Ridge FCU - everyones going to 2% at 5 yrs

How low can we go?
Anonymous   |     |   Comment #2
Sovereign Bank in NY has an 18-mo. CD @ 1.20% and 50 mos. @ 1.50%.
Anonymous   |     |   Comment #3

Ken, why did you stop listing State Dept FCU?  There rates are in line and the 5 year is near the top.