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 December 14, 2012


Survey of the Best CD Rates for December 14, 2012

Most of the rate cuts this week came from the short-term CDs. First, Chartway Federal Credit Union ended its 1-year CD special which had a top yield of 1.51%. Two internet banks also cut their 1-year CD rates. ableBanking cut its 1-year CD APY from 1.12% to 1.05%, and AloStar Bank of Commerce cut its APY from 1.11% to 1.06%.

The highest 1-year CD rate that's nationally available is now 1.16% APY at State Bank of India in Chicago. For those who don't live in Chicago, the CD can be opened by mail. As readers have mentioned, this bank doesn't make it easy to open and close accounts.

The best nationally available CD deals continue to be from all-access credit unions.

The best short-term CD deal is still at Digital Federal Credit Union (DCU) which has a special 8-month CD with a 1.50% APY. This is far better than any short-term CD rate that's available from internet banks. Ally Bank's 11-month No Penalty CD with a 0.95% APY is the best internet bank deal, but it doesn't come close to this special DCU CD.

The best mid-term CD deals are still at Pentagon Federal Credit Union (PenFed) with a 1.50% APY 2-year CD and a 1.75% APY 3-year CD. The only internet bank that comes close to these is Salem Five Direct which still has a 1.50% APY 30-month CD.

The best long-term CD deal continues to be at Pen Air Federal Credit Union which has a Jumbo 5-year CD with a 2.20% APY and a regular 5-year CD with a 2.00% APY. A few other all-access credit unions also offer CDs with a 2.00% APY.

Local CD Deals

For CDs that are only available locally, a few institutions ended their CD specials. HeritageWest Credit Union in Utah ended its 1-year CD special. Consumers Credit Union in Michigan ended its 15-month and 5-year CD specials. And Belmont Savings Bank in Massachusetts is no longer listing its 5-year PlatinumBlue Rising Rate CD which had a blended APY of 3.00%.

There were also a few credit unions that cut their standard rates. The largest rate cuts were at SECNY Federal Credit Union in Central New York. Its Jumbo 5-year CD yield fell from 2.20% to 1.60%.

Randolph-Brooks Federal Credit Union cut its 7-year CD yield by 10 basis points. That took the 7-year CD yield below 2% for the first time ever. It's now 1.92% APY.

I looked hard this week for deals, and I was able to find three that were good enough for this list. Two of them are in Southeast Florida. One is BrightStar Credit Union which is open to residents of Broward and Palm Beach Counties. It's offering a 1.25% APY 23-month CD. Members with a checking relationship can get an extra 25 bps.

The other South Florida deal is at Beal Bank. It's offering a 1-year CD at its South Florida branches with a 1.11% APY. Beal Bank has branches all over the nation, but rates in other areas are lower, ranging from 1.06% to 0.51%. In my blog post I listed areas with yields of 1.06% and 1.01%.

The third new institution is in Texas. It's TEXAR Federal Credit Union, and it's offering an 18-month CD with a 2.10% APY. Unfortunately, it's not available to many people. The field of membership is primarily limited to residents in parts of northeast Texas and southwest Arkansas.

Finally, BBVA Compass continues to offer its CD specials which includes a 2.00% APY 5-year CD and a 1.25% APY 2-year CD. An extra 10 bps is added to the CD rates if the customer opens a CompassLink Checking. BBVA Compass requires new customers to reside near one of the bank's branches. These are located in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas.

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 were recently highlighted by the deposit agreement change at Ally. The risks have also been seen at credit unions which have raised the early withdrawal penalties on existing CDs. I have more details in this 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 December 14, 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