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 April 19, 2013


Survey of the Best CD Rates for April 19, 2013

There were a handful of rate cuts this week. First, Ally Bank's 5-year CD rate fell 5 bps this week from 1.59% to 1.54% APY. The 1.59% only lasted for about five days. At first I thouht it might have been due the alleged FDIC rate cap. However, the 1.59% APY currently meets this rate cap. So I'm not sure why the 1.59% APY ended so soon. If you do want to stick with Ally CDs, don't forget Ally's Loyalty Rewards Program for CD Renewals. I was able to use this to get an extra 25 bps on my Ally 5-year CD.

Another internet bank that's again making rate changes is Salem Five Direct. Last week it cut its 18-month CD yield from 1.05% to 1.00%. This week it cut its 3-year CD rate. It's down from 1.30% to 1.25% APY.

In addition to internet banks, two all-access credit unions cut their rates this week. First, Northwest Federal Credit Union cut its CD rates by 10 bps. Its 2-year and 3-year CD rates had been fairly competitive. Unless you can get the 25-bps rate bonus, you would be better off with other credit unions.

The other all-access credit union that cut rates this week was Apple Federal Credit Union. Its long-term CD rates fell by 10 bps which ends another two percent CD. The 10-year CD yield fell from 2.00% to 1.90%, and the 7-year yield fell from 1.75% to 1.65%.

I now have only five institutions that are nationally available with 2% CDs. There are three with 5-year terms, but only one of them, Mountain America Credit Union, has a 2% 5-year CD without any checking requirements. The other two without checking requirements have 7- and 10-year terms. Air Force FCU continues to offer a 2.00% APY 7-year Jumbo CD, and Discover Bank continues to offer a 2.00% APY 10-year CD. I'm afraid the 2% CD is becoming an endangered species.

Local CD Deals

There were also a handful of rate cuts for the local CDs. Noteworthy ones included Security Service Federal Credit Union which ended its 13-month CD special and Randolph-Brooks FCU which cut its long-term CD rates by 5 bps.

Also noteworthy is the big rate cut at BBVA Compass. It slashed its 5-year CD rates by 50 bps from 1.75% to 1.25% APY. Even with the extra 10-bps rate bump when you meet the checking requirement, this rate is too low to be competitive, so I removed it from the list. For all of last year, BBVA Compass had been offering a 2% 5-year CD.

If you're looking for 2% CDs, there are two credit unions with fairly broad fields of membership (FOM) within their home states. The first is City County Credit Union in South Florida which has a 2.02% APY 5-year CD and a 2.07% APY 5-year IRA CD. You can also get an extra 25-bps rate bump with premium membership. It's located in South Florida, but its FOM includes residents of many Florida counties (see review).

The second one is Police and Fire Federal Credit Union in Philadelphia. Anyone in Pennsylvania can join this credit union via an association. It's offering a 2.00% APY 5-year CD and IRA CD. It also has a good deal on a 4-year CD (1.75% APY) which I just added to the list below. My last review of this credit union was in August.

Finally, we now know the I Bond inflation component for May, and thus, we can compute the I Bond short-term yields if purchased in April and redeemed in 11 to 14 months from now. I reviewed this new rate on Tuesday. As I showed on Tuesday, I Bonds purchased in April are just slightly better than the best 1-year CDs. They're not as good as they have been in the past due to the low CPI-U numbers.

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.

If you want to compare the effective yields of other CDs after the early withdrawal penalties, please refer to our CD early withdrawal penalty calculator.

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 April 19, 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
Not good
Anonymous   |     |   Comment #2
GESA Credit Union, 7-year is 1.92% APY, down from the 2.02% listed above.

City County Credit Union
City County Credit Union   |     |   Comment #3
Ken, thank you for writing about our CD rates! Our members are quite pleased to take advantage of them.