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 25, 2013


Survey of the Best CD Rates for January 25, 2013

There weren't too many CD rate changes this week. This wasn't the case for savings and money market rates. I'll be reporting on those tomorrow. We may see more changes next week as February starts. Credit unions like PenFed often make CD rate changes at the start of the month. So PenFed's current CD rates may not last much longer.

One pleasant surprise this week was at Barclays internet bank which raised its long-term CD rates. Its 5-year CD APY went up from 1.70% to 1.85%. I was already listing this 5-year CD in the list due to its mild early withdrawal penalty of 90 days of interest. With this latest rate hike, it's now a better deal than Ally's 1.59% APY 5-year CD for early closures starting at one year.

On Wednesday I compared five long-term CDs after early withdrawal penalties. This was before Barclays' rate hike so I've updated the table with this new rate. As you can see in the table, Barclays' 5-year CD is the best deal unless you hold the CDs for at least 5 years. In that case, Citizens State Bank's 2.05% APY 5-year CD without an early closure becomes the best deal. Don't forget the risks of depending on an early closure. I have a review of those risks above the table.

Not all was good news this week. Alliant Credit Union cut its CD rates by 10 bps on Thursday. I had only been listing its 48-month CD on my list since this term was the only one near the rate leaders. The new yield of 1.55% is still competitive, so I've kept it on the list.

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

Like the nationwide CDs, there were many rate changes for the local CDs. One credit union had a rate increase. It's Texar Federal Credit Union which is located in Northeast Texas. Its online 2-year CD yield increased from 1.85% to 2.12%. This is now the clear rate leader for 2-year terms.

The other institution with rate changes was San Antonio Federal Credit Union (SACU), and unfortunately, the changes were rate cuts. We've seen quite a few rate cuts at SACU in the last couple of months. Its Jumbo 5-year CD yield has now dropped below 2.00%. There were also cuts in its 7-year and 10-year CD rates. Its Jumbo 10-year CD yield is now 2.70%. Security Service Federal Credit Union (which is also based on San Antonio) continues to have the highest CD yield of 2.85% (7-year term).

I just added one new institution to the list this week. Quabbin Online Credit Union is offering very competitive 12-, 18- and 24-month CDs. The best deal is the 24-month CD which has a 1.75% APY. The CDs can be opened online, but the credit union's field of membership is narrow. You have to live or work within certain areas of Massachusetts (see my review).

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 25, 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
Anonymous   |     |   Comment #1
I would like to know about pep[e's experiences with Mountain America Credit Union:

Anonymous   |     |   Comment #2
I've had CDs at mountain america for years.... no problems.
Robert   |     |   Comment #3
Ally Online Savings account just went down to 0.90%, which puts it below the no-penalty CD (which went down to 0.91% a few weeks ago).
Robert   |     |   Comment #4
Question: Is anyone seeing errors on their Ally 1099 forms?  There was a big issue with this last year, especially with 5-year CD's.
Anonymous   |     |   Comment #5
Happy to say my 1099 was right this year. the first 1099 was wrong last year re 5-yr cds (i have a few 5-yr cds). since last year's fiasco, i changed the interest option from  'add to cd'  to 'transfer interest to money market acct'  quarterly, in the hope that the 1099's would be right this year.