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 January 18, 2013


Survey of the Best CD Rates for January 18, 2013

This was quiet week for CD rate changes. For CDs available nationwide, we had another rate cut on a 5-year CD. Nationwide Bank reduced its 5-year CD rates by 10 basis points. Its top 5-year CD APY is now 1.75%.

There's a new name on the list, but it's not due to new CDs. MetLife Bank officially became GE Capital Retail Bank. It continues to offer the same CDs as before, and currently its most competitive CD is its 18-month term which has a 1.12% APY.

The best short-term CD deal isn't actually a CD, but a money market/checking account. EverBank continues to offer an intro rate of 1.25% that's guaranteed for the first 6 months for new customers. This applies to balances up to $100K for the checking account and up to $50K for the money market account. A new customer can open both accounts at the same time to get 1.25% for a total balance of $150K. Due to the 6-month rate guarantee, I've been listing it on the "under 1-year CD" list.

The highest CD rate that's nationally available continues to be at Citizens State Bank which is offering a 5-year CD with a 2.05% APY. This is a small Florida bank, but they are accepting deposits nationwide and the CDs can be opened online. Before January the bank required a $100K minimum deposit to qualify for a 2.00% APY. The minimum for this 2.05% APY is now just $1,000.

Local CD Deals

This was also a quiet week for CDs that are only available locally. There weren't any rate cuts, but one special CD expired. Generations FCU in San Antonio ended its 18-month CD promotion that had a 1.50% APY.

There was rare rate hike this week at Columbia Bank in New Jersey. I had reported on its 7-year CD on January 4th when its yield was 1.95%. That went up last Monday to 2.10% APY. Its 6-year IRA CD still has a 2.00% APY.

There was only one addition to the list. It's Vision FCU which is offering a 2.02% APY 5-year CD. Members at this credit union can get 2.28% APY by having a checking account with a credit card or loan. Membership is open to those who live or work in parts of New York, Pennsylvania or New Jersey.

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 January 18, 2013

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
Robert   |     |   Comment #1
Has anyone had a monthly statement from Ally where the statement is missing one of the accounts?  For example, I did renew four CD's during the last month, and on my customer statement, one of the CD's is missing.  Just plain not there, nor are the funds listed anywhere.  When I log in to the account online, the CD is listed, and all appears correct.  I've read a lot of complaints about Ally, but I haven't seen this one.  I wonder if this error will propagate to my 1099.
Snippy   |     |   Comment #2
Of course, you then phoned Ally and asked them about this omission, right?

What did they say about it?
Robert   |     |   Comment #3
I e-mailed them and asked they if they could fix it.  Yes, they admitted their error and said it would be fixed on the next statement.  I asked them if it was necessary to phone or snail mail them to fix errors, but they said they would enter the "ticket" to have it fixed. No need to call, I guess.  You have to watch Ally like a hawk because they make a lot of mistakes.

Paul   |     |   Comment #4
Informative list but wondering if its good idea to get into investments - if at all.