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 February 8, 2013


Survey of the Best CD Rates for February 8, 2013

Last week's 5-year CD rate leader fell down from its top spot this week. Citizens State Bank stopped offering its special 2.05% APY 5-year CD. Its standard 5-year CD rates are now 1.81% APY for a $100K minimum and 1.75% APY for a $1K minimum. The new 5-year CD rate leader is now a tie between the State Department FCU and Stanford FCU. Both have a 2.02% APY. However, both have limitations. This 2.02% APY is only available in a 5-year IRA CD at the State Department FCU. At Stanford FCU, it requires a $100K minimum and an active checking account with direct deposit. If you want a regular CD without any checking requirements, the only institution with a nationally available 2% 5-year CD is Mountain America Credit Union.

The highest nationally available 5-year CD rate at a bank is now 1.95% APY. Green Bank, N.A. is offering this rate on its 5-year internet CD.

The next highest 5-year bank CD rate is 1.85% APY. Nationwide Bank increased its 5-year Jumbo CD this week from 1.76% to 1.85%. This rate now ties the Jumbo 5-year CD rate at CIT Bank and the regular 5-year CD rate at Barclays. The Barclays 5-year CD remains the best deal since it has an early withdrawal penalty of only 3 months of interest.

Citizens State Bank didn't cut all of its rates. It increased its Jumbo 1-year CD rate to 1.15% APY (1.10% for the $1K minimum). This is just below the 1-year bank CD rate leader which continues to be State Bank of India - Chicago which has a 1.16% APY. However, I would give Citizens State Bank the advantage since it has an online application.

For terms from 1 to 3 years, PenFed continues to offer the best nationally available CD deals. These include a 1.25% APY 1-year CD, a 1.60% APY 2-year CD and a 1.85% APY 3-year CD. PenFed CD rates typically last through the month, but there's no guarantee.

Local CD Deals

There were a handful of CD rate cuts this week for the CDs that aren't nationally available. The most noteworthy cut was at BBVA Compass. Its 2-year CD yield fell from 1.25% to 1.00%. Its 5-year CD rates didn't change. This continues to be 1.75% APY in parts of AZ, CA and FL and 1.50% APY in CO, NM, AL and TX. An extra 10 bps is available with a relationship checking account.

On the positive side, Security Service Federal Credit Union came out with a new 13-month CD special with a 1.25% APY for a $100K minimum (1.10% APY for a $500 minimum). As is typical with this credit union, this rate is only available in parts of Texas. There are lower rates in Colorado and Utah.

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 February 8, 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
Ally CD rates were stable for a long time and now appear to be going down every couple of weeks.