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 17, 2013


Survey of the Best CD Rates for May 17, 2013

Treasury yields have been going up over the last two weeks, but May continues to be bad for CD rates. We lost another nationally available 2% CD this week. Air Force Federal Credit Union reduced its 7-year Jumbo CD yield from 2% to 1.90%. That leaves Mountain America Credit Union's 2% APY 5-year CD as the only nationally available 2% CD that doesn't require a checking account. If you don't mind maintaining an active checking account, you can also get a 2% APY 5-year CD at Stanford Federal Credit Union and at Connexus Credit Union.

The highest 5-year CD rate for a bank continues to be 1.85% APY at Green Bank, N.A. Green Bank has an online application, but I don't consider this an internet bank. The highest 5-year CD yield at an internet bank is 1.75% APY at Barclays, CIT Bank and GE Capital Retail Bank.

GE Capital Retail Bank just recently joined this internet bank rate leader status. Its 5-year Jumbo CD yield increased this week from 1.65% to 1.75%. Its 4-year CD yield also increased. However, not all of its rates increased. Its 18-month Jumbo CD yield fell this week from 1.10% to 1.05%.

Local CD Deals

The best deal this week came from Libertad Bank. Unfortunately, it's only available to Texas residents. The deal includes a 15-month CD with a 1.50% APY. An even better deal is its money market account special with a 1.50% APY that's guaranteed to last until 6/30/2014. Minimum balance to qualify for this rate is $10,000. Since the money market account rate is guaranteed to last until 6/30/2014, I consider this to be essentially a 1-year CD that's more flexible. Keep in mind that Libertad Bank is small, and hot deals often don't last long at small banks.

One recent hot deal that didn't last long was at SharePlus Federal Bank which has branches in parts of Texas, California and Kentucky. The bank had a special CD with a 2% APY for terms from 1 to 5 years. Since the special is no longer listed on the bank's website, I called the bank today (the Irvine branch), and I was told the rate has fallen to 1.50% APY. That's still a good deal for terms of under 3 years.

We also lost a 2% CD from the local deals this week. Security Service Federal Credit Union's 5-year CD yield that's available in San Antonio fell from 2% to 1.95%. The 7-year CD yield also fell 5 bps. It's now 2.30% APY.

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 17, 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)
  • Libertad Bank - 1.50% MMA rate guaranteed to 6/30/14 (Texas)
  • SharePlus Federal Bank - 1.50% ($25K-$50K max) 1-year You Choose CD (parts of TX, CA & KY) account review
  • 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
  • Gulf Coast Federal Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
  • Libertad Bank - 1.50% 15-month CD special (Texas)
  • Doral Bank NY - 1.25% 18-month CD (NYC)

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
Bozo   |     |   Comment #1
The elephant in the room, of course, is that a well-placed trade in just about any equity can yield more than a 2-year CD in one day. Unless or until this madness stops, we will be back on the path that created the bubble.
Anonymous   |     |   Comment #2
Yup, I gave up on CD many years ago and went for growth, and I am cashing in now.  I don't know who in their right mind would tie up good money on CDs.  Tracking the miniscule earnings from CDs seems pointless as long as Fed policies continue. 
really   |     |   Comment #3
paoli see 1 and 2
paoli2   |     |   Comment #4
really:  Thanks but no thanks.  With the Fed in the quandry it is about QE3 and not knowing what affect it will have when they "try" to pull out, you really think this is a good time to risk stocks?  I have reasons for doing what I am doing.  I sure hope you have reasoned yours out just as well.  Best of luck!
Anonymous   |     |   Comment #5
paoli and do not 4get operation twist  hope those cds can buy plenty of apple juice and dora or is princess drinking cups  y tu
paoli2   |     |   Comment #6
#5  Call it Operation Twist or Operation Stupid.  The names don't matter.  The scary thing is that they have no idea why they really got us in it and now they don't know what's going to happen if they try to undo their bad ideas!  We can't run and we can't hide.  They have all the cards but they don't know which ones to play.  Scary??  I think so.
Anonymous   |     |   Comment #7
pa when you reach that magic number and i am guesssing it to be 1 mill in the special needs /medical account 30 per year for 30 years then what for as the song goes in 50 years or so things are going to change you know do you think anyone will care if the wheel chair is broken or we had  accident and there are no wipeas around  
Maecl   |     |   Comment #8
To all who have negative comments for those holding CDs.  Remember what a bird in the hand is worth.  I have equity & bond funds but I worry.  I know I can't time the market.  I never thought the housing bubble would have lasted as long as it did.  Many can't put that money at risk.

I'd still like to know if anyone has experience with Tiaa Direct CDs.  Since I still have funds there I thought I could open one instead of moving money out.
paoli2   |     |   Comment #9
Maeci:  I don't have any experience with TIAA Direct but if you type TIAA Direct into DepositOnline's Search Box at the top of the page, it will bring up all types of info and reviews about it which may help you.  A lot of the info seems to be from people who have or are using it so it seems recent too.  Hope that helps.

Anoy #7:  Can you translate what you just wrote?  I am not 100 years old and so far do not need Depends.   You are correct about the "magic number" in this day and age and even more for those who can manage it.  We have no idea what Depends will cost in the future.:)
Anonymous   |     |   Comment #10
Does anyone know if, as interest rates have gone down, lotto ticket purchases have gone up? It'd be interesting to see that chart. I think the underlying theme of the Fed is to get the population to shift from disciplined secured savings to risky and uncertain spending, because they believe this leads to economic growth. So as soon as any recovery occurs, the next bubble is already well underway.
Anonymous   |     |   Comment #11
#10  That chart would be interesting to see.  However, I think there are basically two types of people.  Those who make their own money by saving (no matter what interest rates are) and those who don't save or save very little and just hope that one day they can make the big bucks through the lottery or an inheritance.  I have never played the lottery and even when we were in Las Vegas I only allowed us $5.00 each to play the slot machines.  As one can tell, I am not a believer in these type of winnings.  To each his own.
Anonymous   |     |   Comment #12
pa interesting did not mention depends but yet you know what i am talking about and not that you will respond but adonde did I  say that you were 100 years old which is a perfect segway to gimbels a hand full of poo ps  the musical referennce is tO the broadway show in manhattan new york CHICAGO
Bozo   |     |   Comment #13
The market can stay irrational far longer than most folks can abide. Right now, the issue, succinctly stated, is: "why should I buy a CD at less than the stated rate of inflation?" Not that bond funds are any refuge. Just re-balanced my wife's 401K, whacked a bit off the stocks, and plopped into TBM. With the way things are going, both stocks AND bonds will now go down. I suspect wife will not be amused. 
Anonymous   |     |   Comment #14
BOZO i realize  that for what ever reason you do not respond but when one inserts  TBM 12  possible investments come up as per yahoo finance could you provide any additional info always looking to make some dinero
Bozo   |     |   Comment #15
TBM = Total Bond Market. And I doubt it will generate any "dinero" any time soon. With a duration just north of 5 and an SEC hovering around 1.6, it's about as lame as it comes. VBTSX. Look it up.
Anonymous   |     |   Comment #16
For the person who gave up on cds--what is the growth you are cashing in on now?

Anonymous   |     |   Comment #17
If you had just invested the interest from CDs you earned over the period of 2004 to 2008 in equities, you would now have made a sum rivaling the principle you had in CDs and, when things look too risky, just pull out. CD are ridiculous, as their interest is not even covering the cost of inflation, so you are flushing money down the drain by having a bank or CU hold your funds in CDs. At least consider diversifying, and then you will be better off when equities go down and inflation goes up and interest rates go ?????? Just because there is a site devoted to CDs and deposit accounts doesnt make it an endorsement for investing totally in these vehicles. Anyone that can read can understand why CDs make no sense under the current economic climate.  When I mention CD rates to several of my bankers now, they just laugh.... You haven't gotten the hint yet...  look at what is happening in Europe with negative interest rates, charging you money to put your funds in their CDs.   Its happening here too, but its more subtle, with all kinds of creative bank fees.
paoli2   |     |   Comment #18
#17  Do you make a living selling equities?  Hasn't it occured to you by now that one can't "time" the stock market.  You are looking back at the past and what might have happened if we had been in stock during that period.  However when one buys equities, one has no idea what the future will bring them.  With CDs it may be only 2% but it is money we "know" we can count on.  I would rather have 2% of something than 10% of a ? mark.  I can't work out a budget to live on with a question mark but I can with 2%.  Do you have any idea what I am talking about? 

In a gist, DepositOnline is not a group of stupids who don't know about inflation, deflation or the Federal Reserve.  If we are still in CDs it is because we have found a way to work around these problems and that is where we want to be, at least speaking for myself that is.  
Anonymous   |     |   Comment #20
Can somebody ask ytytytyt how his recent gold puchases are doing?