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 29, 2013


Survey of the Best CD Rates for March 29, 2013

This last week of March was quiet for CD rate changes. We may see more on Monday when April begins. Credit unions like PenFed often change their rates on the first of the month.

Navy Federal didn't wait until April to cut rates. Its CD rates fell last Monday. Its Jumbo 7-year and 6-year CD rates fell by 5 bps. So the highest 7-year APY is now 1.95%.

Colorado Federal Savings Bank cut its 6-month and 12-month CD rates by 5 bps. Doral Bank Direct's 6-month CD rate fell 1 bps to 0.88%, but it remains the best 6-month CD rate that's nationally available without a checking requirement. If you want a 6-month CD, you might want to look at EverBank's checking and money market promo which guarantees a 1.25% rate for the first 6 months. You have to be new customers, and the balance that qualifies for this promo rate is capped at $100K for the checking and $50K for the money market account.

With CD rates and early withdrawal penalties constantly changing, you may want to compare CDs taking into consideration the effect of the early withdrawal penalties. To help you with this, we have developed a new CD early withdrawal penalty calculator (see calculator review). This allows you to compare the penalty adjusted net yields by month of any CD. Here's an example comparing seven long-term CDs that have top rates and reasonable early withdrawal penalties.

Local CD Deals

Like the nationally available CDs, this was a quiet week for the local CDs. Union Bank is no longer listing its money market promo for Washington and Oregon which guarantees 1% APY through 2013. Jefferson Financial Credit Union in Louisiana slashed its CD rates by so much, I removed them from the list.

On the plus side, I added two banks to the list. One is well known. It's Capital One Bank. The addition isn't a CD but a checking account promo which guarantees 1.00% APY for 12 months for balances up to $100K. This checking promo is only available where Capital One has branches. I have more details in my promo review.

The other two additions are CDs at eastern community banks. The first is a 1.15% APY 15-month CD special at Providence Bank in North Carolina (see review). The second one is a 1.15% APY 1-year special CD at East River Bank in Philadelphia (see 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 March 29, 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
Any idea about the I Bond rate in May. Would it beat any of these CDs
Randy   |     |   Comment #2

I note that Ally's latest Bank Deposit Agreement (2-28-2013) no longer has that distasteful language about "If we consent to" the early withdrawal of your CD.  It now  says "If you withdraw all of the funds you have deposited in a CD prior to the maturity date ..."  Looks like their consent is once again not required to break a CD early?  Penalty is still only 60 days interest.

You can find Ally's Bank Deposit Agreement at the following link.  See the bullet on page 7 "Early Withdrawals"


klink   |     |   Comment #3
Randy...your link takes me to the current Ally Deposit Agreement PDF file at Ally which is dated 18 Jun 2011. In that agreement at the end one can find amendments. The one at issue is dtd 27 sep 2012 which covers the present penalty wording. I can find no new Ally Deposit Agreement dtd 2/28/13.
outtempster   |     |   Comment #4
PenFed CD rate dropped again. 3 year CD dropped from 1.6% to 1.2%. 7 year CD is only 1.5%.

6 Month 0.550% 0.55%**
1-Year 0.750% 0.75%
2-Year 0.990% 0.99%
3-Year 1.190% 1.20%
4-Year 1.340% 1.35%
5-Year 1.390% 1.40%
7-Year 1.490% 1.50%
Anonymous   |     |   Comment #5
Wow,  #4 they have even fallen below their competor Navy, I will be opening a new account at Navy next week and open a 18 month CD at a lousy 1.05%, but it seems that's better than the others

The bank (SunTrust) that has my money now doesn't even come close, besides it concerns me when I see no manager has been hired for over a month now at the branch I use since the one I knew left for another bank.