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 March 1, 2013


Survey of the Best CD Rates for March 1, 2013

The start of March did bring some rate cuts. The most noteworthy cuts were at PenFed. All of PenFed's CD rates from 1-year to 7-year fell by 25 basis points. Even with these cuts, PenFed's 2-year and 3-year CD rates are still near the top of the list.

PenFed's 7-year CD yield fell from 2.00% to 1.75%. So we lost another 2-percent CD. Due to this rate cut, I removed PenFed's 7-year CD from the list for early closures. With an early withdrawal penalty of 1-year of interest, this is no longer a good deal. The Barclays 5-year CD with a 1.85% APY and an early withdrawal penalty of only 3 months of interest remains the best deal if you plan to close the CD early. As we have discussed many times, there are risks with planning for early closure.

There were also rate cuts at Citizens State Bank, but its 1-year CD rate is still near the top (1.13% APY for a $100K minimum and 1.10% APY for a $1K minimum). A reader had reported being told that Citizens State Bank had decided to stop accepting out-of-state deposits. However, I contacted the bank today, and I was told they are still accepting out-of-state deposits, and the application can be done online. Citizens State Bank is a small Florida bank, and it's common for small banks to change their policies on deposits. So hopefully, they will continue to accept out-of-state deposits.

Local CD Deals

There were a few rate changes for the local deals today. Not all were cuts. There were actually a couple of rate hikes. A few were at Doral Bank in New York City which had CD rate increases of 5 bps. Its best deals are a 1.20% 1-year CD, a 1.25% APY 18-month CD and a 1.45% APY 2-year CD.

The other rate hike was at HAPO Community Credit Union in Washington State which had some CD rates that went up by 10 bps. Its best deals are now a 1.85% APY 4-year CD and a 1.95% APY 5-year CD.

I added one local deal this week. City County Credit Union in Florida increased its 5-year CD yield to 2.02% APY. Members can get up to 2.28% APY with a premium relationship. This is a small credit union, but its field of membership includes many counties throughout Florida.

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 March 1, 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
cumulus   |     |   Comment #1
Ally 11 month no-penalty CD APY back at 0.88% today; a
bit strange as they lowered it (to 0.86%) for one day

Looks like they're testing your rate tracking Ken ;-)
Robert   |     |   Comment #2
Ally no-penalty CD at 0.86 today (Sunday).  Perhaps your website hadn't refreshed properly?