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 3, 2013


Survey of the Best CD Rates for May 3, 2013

The start of May wasn't good for CD rates. Several banks and credit unions cut their CD rates this week. The biggest disappointment was PenFed which slashed all of its CD rates by 25 bps. The highest PenFed CD rate is now only 1.25% APY, and that requires a 7-year term. Let’s hope we’ll see competitive rates return at PenFed later this year or early next year. Those 5% 10-year CDs that PenFed offered in 2011 keep looking better and better.

Melrose Credit Union was another one with rate cuts this week. All of its rates fell by 10 bps. At least the cuts weren't as bad as PenFed's cuts. Melrose Credit Union's 4-year and 5-year CD rates continue to be very competitive.

We lost another 2% CD this week. Discover Bank reduced its 10-year CD yield from 2.00% to 1.95%. Its shorter-term CDs also had rate cuts of 5 bps.

Nationwide Bank cut most of its CD rates by 10 bps this week. Nationwide used to have one of the top 5-year CD rates for internet banks. Its 5-year Jumbo CD yield is now 1.65%. Barclays and CIT Bank's 1.75% is now on top for internet banks.

The highest 5-year CD rate for a bank is now 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.

If you don't want to lock into a long-term CD and you don't want to deal with checking requirements, you will probably have to settle for rates around 1.00%. I added one new nationally available bank to the list with a good 1-year CD deal. It's Triumph Savings Bank, and it's offering a 1.06% APY 1-year CD.

Local CD Deals

Every now and then a hot CD deal pops up. That was the case with the CD promotion at SharePlus Federal Bank. It's offering a 2.00% APY CD for terms of 1 to 5 years with a maximum deposit of $25K (or $50K with a checking account). At first the bank was accepting out-of-state applicants. That didn't last long. Now it's only a local deal for those who live near the bank's branches in Texas, California and Kentucky.

I added another credit union to the local list, but the deal doesn't come close to the SharePlus deal. It's Your Community Credit Union, and its offering a 6-month and 12-month Jumbo CD with a 1.00% APY. Membership is open to many people in Dallas-Fort Worth and Houston, Texas.

Just like the nationwide CDs, there was more bad news than good news for the local CDs. There were several rate cuts. In addition, several institutions ended their CD promotions.

Some of the noteworthy institutions to cut rates include University of Iowa Community Credit Union, Texar FCU in Northeast Texas and Freedom Credit Union in Philly.

Some of the noteworthy institutions that ended their CD promotions include Hudson Valley FCU of New York, Eastbank in New York City and East River Bank in Philly.

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 3, 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)
  • 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

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
One positive jobs report today raises the 10-year treasury yield by 11 bps and the 30-year by 13 bps. Of course, when higher or more volatile treasury rates will trickle down to CD rates is anyones guess. 
Jordan   |     |   Comment #2
I've found Mountain America's account to be easy to open and very competitive in the market place: