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 15, 2013


Survey of the Best CD Rates for March 15, 2013

Some of the economic news today such as the fall of consumer sentiment shows that the markets may have been too optimistic about economic growth this year. Higher deposit rates are likely still a long way off. That may be why we are still seeing CD rate cuts. This week, there were two notable rate cuts on long-term CDs.

Ally Bank cut 5-year and 4-year CD rates this week by 5 basis points. Its 5-year CD APY is now 1.54%. CIT Bank also cut its 5-year CD rate. CIT Bank's APY is now 1.75% for a $100K minimum and 1.70% for a $1K minimum.

On the plus side, we have a new 5-year CD rate leader. The National Republic Bank of Chicago increased its 5-year CD rate this week to 2.02% APY. There are two all-access credit unions that have this same rate, but one only has this as an IRA (State Department FCU) and the other one requires a checking relationship and a $100K minimum (Stanford FCU).

The National Republic Bank of Chicago also increased its 3-year CD yield to 1.51% APY. This is tied with State Bank of India - Chicago for the highest 3-year CD rate at a bank. However, the best 3-year CD deal continues to be at PenFed which has a 1.60% APY with no checking requirement. It's hard to believe that this was 1.85% APY in February.

Local CD Deals

There were a handful of rate cuts for the local deals. Two long-term CD rate leaders had cuts this week. Both are based in San Antonio, Texas. Security Service FCU cut its Jumbo 5-year CD rate from 2.30% to 2.15% APY. Its Jumbo 7-year CD rate fell from 2.85% to 2.55% APY.

San Antonio Federal Credit Union (SACU) had another rate cut this week. All of its CD rates fell by 10 bps. Its 10-year CD rate fell to 2.40% APY and its 7-year CD rate fell to 2.15% APY.

On the plus side, I added three CDs from the Department of Commerce FCU which is based in Washington, DC. Its 3-, 4- and 5-year CD rates recently went up by 5 to 20 bps. The highest rate is its 5-year CD which has a 2.05% APY.

Another CD I added this week is a short-term deal. Premier America Credit Union with branches in Southern California and in Houston is offering a special 13-month CD with a 1.03% APY. It's not a hot deal since a few internet banks still offer 1.05% APY for a 1-year term. However, for those who prefer to bank at a local brick-and-mortar office, it's a respectable deal.

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.

Update 3/16/13: Barclays has increased its early withdrawal penalty for terms over 2 years from 90 days to 180 days of interest. This will decrease the effective yields when the CDs are closed early.

Yields Accurate as of March 15, 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
Ken, Under local credit unions, the Hudson Valley Federal Credit Union in Downstate NY is offering a 1.3% 13 month CD until April 28th. https://www.hvfcu.org/ads/certificate-account