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 24, 2013


Survey of the Best CD Rates for May 24, 2013

This was another week of rising Treasury yields. In previous weeks we’ve seen higher Treasury yields but cuts on many of the CD rate leaders. There were some more CD rate cuts this week, but there were also a few rate hikes. Ally Bank raised its 5-year CD rate from 1.51% to 1.54% APY. Also, Salem Five Direct increased the rates of its CD specials. Its 3-year CD rate went up from 1.25% to 1.50% APY.

As has been typical, some of the rate leaders cut their CD rates. This week the cuts came from small banks that have been offering their CDs nationwide. The cuts were so deep for two of the banks that I removed these banks from my list. The first was Green Bank, N.A. which reduced its 5-year CD rate from 1.85% to 1.50% APY. The second was Citizens State Bank which slashed its 1-year Jumbo CD rate from 1.05% to 0.54%. The third small bank that cut its rates was Triumph Savings Bank, but its cut was small. Its 1-year CD rate fell from 1.06% to 1.02% APY.

The only nationally available CD with a 2.00% APY that doesn’t require an active checking account continues to be at Mountain America Credit Union. It’s a 5-year CD. With May ending in a week, it may not last long. When this credit union changes rates, the rate changes usually occur at the start of the month.

Local CD Deals

I added two good short-term deals. The first isn’t a CD, but a savings account promo with a 6-month rate guarantee. It’s at Flagstar Bank in Michigan, and the promo rate is 1.00% APY for balances up to $10 million. The rate is lower than EverBank’s 1.25% 6-month intro rate, but EverBank’s rate guarantee only applies to the first $50K for the money market and the first $100K for the checking.

The second good short-term deal is at Homebanc, N.A. in Central Florida. It recently came out with a new short-term CD special. It’s a 4-month CD with a 1.30% APY for a maximum deposit of $75K.

Neither of these deals are as good as last week’s hot deal, the 1.50% APY money market promo and 1.50% APY 15-month CD at Libertad Bank. This deal is still available for Texas residents.

It’s important to remember that these short-term deals don’t offer much advantage over the top internet savings accounts. You can get higher rates with long-term CDs, but the rates aren’t that much higher. It can be difficult just to find a long-term 2% CD. I added one more of these this week. It’s a 2.10% APY 5-year CD at The MINT National Bank. It’s a small bank based in Kingwood, TX which is a small city just north of Houston. I had reported on this bank last year, but it had fallen off my radar. Thanks to the DA reader who wrote a review of this bank and reminded me of this CD.

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 24, 2013

Under 1-Year CD Rates

  • Noteworthy Local Deals

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
Anonymous   |     |   Comment #1
Thanks to Bernanke's 'Marie Antoinette' ("Let them eat cake") attitude  towards Fixed Income SAVERS.
Anonymous   |     |   Comment #2
Helicopter Ben wants the savers to go all-in to the bloated stock market. There are trillions of dollars on the side lines. I think people are wise, not to play the greater fool game, having been burned twice.
paoli2   |     |   Comment #4
The French Revolution was not about getting higher interest rates.  Those poor people didn't have enough money to buy food much less put it in a savings account!  Today, it would be like the infamous BB saying "Tell them to put their money in a garbage can".  At least Savers have (or should have) enough money to buy food unless the dollar crashes too!
Bozo   |     |   Comment #6
As we have seen in the past (2006 - 2008 come to mind) CD rates are "stickier" than Treasury rates, for obvious reasons. That said, the trend is good. I find it interesting how many folks over at Bogleheads are "recent converts" to the concept of a CD ladder. I suspect Ken is witnessing a modest upsurge in traffic from the links we post there, to here.
Anonymous   |     |   Comment #8
Bozo :  Where is the Bogleheads page?  I never heard of it.  Thanks.