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 May 10, 2013


Survey of the Best CD Rates for May 10, 2013

May continues to be bad for CD rates. Several internet banks cut their CD rates this week. Ally Bank's 5-year CD yield hit a new low with a 1.51% APY. This is down from 1.54% APY.

NexBank had been a rate leader for its short- and mid-term CDs. That changed this week. Rates fell from 15 to 25 basis points. Two examples of the cuts include a fall from 1.05% to 0.90% APY on the 12-month CD and a fall from 1.30% to 1.05% APY on the 24-month CD.

Other banks with CD rate cuts include Colorado Federal Savings Bank, Nationwide Bank and CIT Bank.

In addition to the banks, Navy Federal Credit Union cut its CD rates. The 7-year and 6-year CD rate cuts were the largest. The 7-year Jumbo CD rate fell from 1.95% to 1.80% APY.

The highest 5-year CD rate for a bank continues to be at Green Bank, N.A. with a 1.85% APY. Green Bank has an online application, but I don't consider this an internet bank. Managing the CD probably won't be as easy as a pure internet bank.

For nationally available CDs without checking account requirements, there are only two institutions offering 2% CDs. One is Mountain America Credit Union with a 2.00% APY 5-year CD, and the other is a 2.00% APY 7-year Jumbo CD at Air Force Federal Credit Union.

Local CD Deals

When there's a hot CD deal, it doesn't usually last long. That was the case with SharePlus Federal Bank and its 2% APY 1-year CD. That special is no longer listed on the bank's website. There was also a 2% APY 1-year Jumbo CD at Health One Credit Union in Michigan. That fell this week to 1.00%. Who would have thought seven years ago that we would be calling a 2% CD a hot deal?

There were also a couple of long-term CD rate cuts. Melrose Co-operative Bank in Massachusetts cut its 5- and 4-year CD yields from 2.00% to 1.75% and 1.50%. San Antonio Credit Union (SACU) had another rate cut this week on its 7-year CD. The Jumbo 7-year CD yield fell from 1.90% to 1.80%.

On a positive note, we had another small rate hike at HAPO Community Credit Union in Washington State. Its 4-year CD yield increased from 1.70% to 1.75%, and its 5-year CD yield increased from 1.80% to 1.85%.

I just added one new CD this week. It's a 1.06% APY 6-month Jumbo CD special at Prairieland Federal Credit Union. Membership is primarily limited to those in the Bloomington metro area of Illinois.

The best local deal continues to be the 2.50% APY 30-month CD at NavyArmy Community Credit Union. Membership is open to those who live, work, worship or attend school in one of several Texas counties that make up the Corpus Christi metro area.

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 May 10, 2013

Under 1-Year CD Rates

  • Noteworthy Local Deals
  • Quabbin Online Credit Union - 1.25% (max $100K) 6-month CD (parts of MA)
  • PacTrust Bank - 1.25% ($250K) 1.00% ($100K) Savings Account intro rate until 12/31/13, account review (SoCal)
  • Gulf Coast Federal Credit Union - 1.10% 6-month CD (Corpus Christi, TX metro)
  • Prairieland Federal Credit Union - 1.06% ($100K) 6-month special CD (Central IL)
  • Oritani Bank - 1.02% checking intro rate until 1/2/14 (Northeast NJ)
  • Your Community Credit Union - 1.00% ($100K) 6-month CD (Dallas-Fort Worth and Houston, TX)
  • CapitalSource Bank - 0.90% ($10K) 9-month CD (Southern California)

1-Year CD Rates

  • Noteworthy Local Deals
  • City County Credit Union - 1.51% 1-year IRA-only CD (many FL counties)
  • Gulf Coast Federal Credit Union - 1.50% 12-month CD (Corpus Christi, TX metro)
  • LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
  • Doral Bank NY - 1.20% 1-year CD (NYC)
  • Beal Bank - 1.11% 1-year CD (Southeast FL)
  • University of Iowa Community Credit Union - 1.10% ($250K) 1.00% ($100K) 0.90% ($1K) 13-month CD (several parts of Iowa)
  • General Electric Credit Union - 1.02% ($100K) 1-year CD (Cincinnati OH metro)
  • Health One Credit Union - 1.00% ($100K) 0.80% ($10K) 1-year CD (parts of MI)
  • Your Community Credit Union - 1.00% ($100K) 1-year CD (Dallas-Fort Worth and Houston, TX)
  • Capital One Bank - 1.00% 12-mo Checking intro rate up to $100K (parts of TX, DE, MD, DC, NJ, NY and VA)

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
On a day that 10-year and 30-year tresuries go up about 10 bps the Survey still starts with "May continues to be bad for CD rates". When will anything make sense?
Alskar   |     |   Comment #2
The graph of 5yr CD rates HAPO Credit Union in Washington State looks like a seismograph.  They seem to have changed their 5 yr CD rates 2-4 times per month.  Sometimes they've changed it twice in the same week.  What's up with that?
Anonymous   |     |   Comment #3
can some one explain maybe it is because i did not graduate college but all people do is bich and moan about cd rates but nary a word about anything else they might invest their money in? no risk no reward  however i must have done something right was able to retire at 49 and live a complaint free life or perchance their enjoyment is derived from complaining?  seems like a waste of time effort and ones life IMHO 
mrvirgo   |     |   Comment #4
Number 3  Congratulations on your early retirement and carefree life. Would you care to share with the rest of us how you did it?  I thought retiring at 59 was a coup on my part, but you seem to have really done well for yourself. Any insight would be much appreciated.
Anonymous   |     |   Comment #5
Cute puppy gladly sound investments conservative life style hard work mix of bonds mutual funds less than 10 percent then and less then 3 percent now in those most DESIRable cds. What is really interesting is that it was done with a fas of less than 60k and  ss will not kick in for 3 years .Currently between pension and investments make in the low to mid 40 per year it is not rocket science would give out cusips or symbols but you know what the deleters think of tha.t PS I live in New York mr gemini aqui.      
Anonymous   |     |   Comment #6

I would be interested in your investment mix including cusips, symbols and percentage allocated to each.  I don't thing the deleters would object, since it may help someone on this bog increase their income.
Anonymous   |     |   Comment #7
cuspis and symbols will take some time but the percents are  fix income 59.06 mutual funds 10.46 cash 18.01 equities 12.47 do not have any pure stocks in the entire portfoloi
Anonymous   |     |   Comment #10
agree with #1 completely. why cant these higher 10 year rates be reflected in cd offerings.? btw you guys retiring early are great, i just retired at 65 and people are saying i left too soon!
Anonymous   |     |   Comment #13
agree with 12  where are the deleters when we need them
Anonymous   |     |   Comment #14
9 what did  i tell you
Anonymous   |     |   Comment #15
# 14 - 403 errors are easy is work around.
Anonymous   |     |   Comment #17
good 1 16 considering she  use to go by the moniker apache  careful  though if you vist jerry pilsner site you will be banned for spam bots and mal ware what ever that is  
Maecl   |     |   Comment #18
Has anyone had experience with a Tiaa Direct CD?  I thought it might be easier to open a CD with them with the funds I have in their savings account instead of moving most of it out.  The rates are about the same or a litte better than Ally.