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 31, 2013


Survey of the Best CD Rates for May 31, 2013

May is ending with another week of rising Treasury yields. For the month, the 10-year Treasury yield increased by 50 bps to 2.16%. That’s the largest monthly gain in three years. The signs of a strengthening economy are causing the markets to speculate that the Fed will soon be tapering its bond-buying program.

Those rising Treasury yields aren’t transferring over to CD rates. CD rates fell at Ally Bank and Discover Bank. Ally’s 5-year CD yield fell from 1.54% to 1.51%, and all of Discover Bank’s CD rates fell by 5 bps. Discover’s 10-year CD yield is now 1.90%. That is now the highest CD rate for terms over 5 years. It ties Air Force FCU’s 7-year CD rate and Apple Credit Union’s 10-year CD rate.

We may see more rate cuts on Monday which is the first business day of June. A reader informed me that he was told that Mountain America Credit Union's 5-year CD yield will be falling from 2.00% to 1.85% on Monday. If we lose this 2.00%, the only other 2% 5-year CDs that are nationally available require active checking accounts. These are available from Connexus Credit Union and Stanford FCU.

Local CD Deals

There were also quite a few local CDs that had rate cuts this week. The largest cuts were at University of Iowa Community Credit Union. Its highest CD yield had been 1.95% for a Jumbo 50-month CD special. That has fallen to 1.55%. Other CD terms had similar cuts, and consequently, I removed these CDs from the list.

We also saw cuts at two large Texas credit unions. Security Service FCU and Randolph-Brooks FCU both cut its long-term CD rates. Randolph-Brooks’ 7-year CD yield is now only 1.76% (down from 1.92%). Security Service FCU’s 7-year CD yield is still over 2%, but not by much. It’s now 2.20 (down from 2.30%).

One small bright spot is in New York City. Doral Bank New York increased its 3-year CD yield from 1.55% to 1.60%. All of its CD rates are very competitive. The two best are the 1.20% APY 1-year CD and the 1.45% APY 2-year 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 31, 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)
  • 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
HOODY   |     |   Comment #1
Maybe the reason they continue to drop rates is because they want to start at the lowest possible rate to start up at so they can drag it on even longer than nessessary.
Anonymous   |     |   Comment #2
On the other hand, it could be because they're awash in cash (cheap money that Bernanke has been providing) and have no need for deposits from the general public.
Anonymous   |     |   Comment #3
All the money in the 5-plus % 5-year CDs mature later this year. It will be interesting to see if banks compete for this newly available money or if they are so saturated with cash that they are willing to let it go to competitors. Also, the millions of low interest loans that banks now have in the books have terms as long as 30 years, which may create a ceiling on the CDs they can offer. 
Shorebreak   |     |   Comment #4
Re: Anonymous - #3, Friday, May 31, 2013 - 8:39 PM

Good point, but there are still a few CD accounts out there not maturing this year that yield more than 5%. I'm sure we will hear from the PenFed account holders regarding their 10-year 5% APY money market certificates. My crown jewel is a Capital One 7-year 5.25% APY CD that doesn't mature until December 2015.
Anonymous   |     |   Comment #5
Anon #2, yep, banks are awash in deposits.  They don't hardly need them, so they don't pay diddly squat.

Anonymous   |     |   Comment #6
Is there a safe way to get more money on money than in banks and credit unions?

Anonymous   |     |   Comment #7
Yes, give your money to a scam artist that sells 8% plus returns. 
Anonymous   |     |   Comment #8
Anonymous   |     |   Comment #9
Anon #8.  Are you refering to scam artists or bankers?
Bozo   |     |   Comment #10
I believe I noted in another thread that CD rates do tend to be "stickier" than Treasuries. CD rates were slower to react back in 2007 (as in, to go down) and will no doubt be slower to react as rates increase.