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 26, 2013


Survey of the Best CD Rates for April 26, 2013

Another 5-year CD rate leader had a rate cut this week. Barclays reduced its 5-year CD rate from 1.85% to 1.75% APY. Barclays is once again tied with CIT Bank and Nationwide Bank with a 1.75% APY 5-year CD. Two months ago all three of these banks were tied with a 1.85% APY. The only bank that still has a 1.85% APY is Green Bank, N.A. That is now the highest 5-year CD rate for a bank. The highest 5-year CD rate from a credit union without a checking requirement continues to be 2.00% APY at Mountain America Credit Union.

If a 5-year term is too long for you, I'm afraid we are also seeing lower rates on the shorter terms. In the last few weeks BofI Federal Bank had been offering a good deal through its affinity groups. One of those deals was a 12-month CD with a 1.15% APY. That rate fell to 0.80% this week. Now the highest 1-year CD rate continues to be 1.16% APY at State Bank of India - Chicago. The downside with this CD is that it has to be opened by mail if you can't make it to the bank's Chicago branch. The highest 1-year CD rate without a checking requirement that can be opened online is 1.05% APY. There are still four banks with this rate.

I added one internet bank to the list today. It's the iGObanking.com 7-year CD which has a 1.75% APY. You can get a higher rate from Discover Bank and from a few all-access credit unions. Nevertheless, it's a fairly competitive rate in today's environment. If you do open a CD at iGObanking.com, it's very important that you don't let the CD automatically renew at maturity. You might get stuck with a very low rate. For example, iGObanking.com's current 10-year and 5-year CD rate is only 0.35%.

Local CD Deals

I'm afraid there were several rate cuts for the local CDs. Noteworthy ones were 2% CDs. These included Workers Credit Union's 6-year CD (2.50% to 2.25%), San Antonio Federal Credit Union (SACU)'s 10-year CD (2.40% to 2.30%) and Security Service Federal Credit Union's 7-year CD (2.55% to 2.35%). If this continues, it won't be long before we lose all of the remaining 2% CDs.

Not all the rate changes were cuts this week. There was a little bit of good news at HAPO Community Credit Union in Washington State. Its CD rates went up by 5 bps this week. Its 4-year CD rate is now 1.70% APY.

There was also some good news with a CD addition. I added Health One Credit Union's Jumbo 1-year CD to the list. This has a high rate of 2.00% APY for a $100K minimum deposit (incredibly high in today's environment). The rate goes down to 1.20% APY for a $10K minimum. Credit union membership is open to residents of certain Michigan counties (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.

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 26, 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
Jordan   |     |   Comment #1
I've found Mountain America's account to be easy to open and very competitive in the market place: