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 June 21, 2013


Survey of the Best CD Rates for June 21, 2013

Treasury yields rose substantially this week after the Fed meeting when Chairman Bernanke described the FOMC’s plan to end the bond purchase program (i.e. QE). That didn’t carry over to CD rates. I’m still seeing more rate cuts than rate increases for long-term CDs. Barclays is one that cut its rates this week. Most of its rates fell by 10 bps including its 5-year CD which now has a 1.65% APY. Another internet bank that cut rates was EverBank. Its 4-year CD yield fell from 1.51% to 1.43%. However, its 5-year CD yield of 1.76% held steady, and that remains the top 5-year CD rate from an internet bank.

Not all was bad news. I added three new CDs to the nationwide list.

One is special type of CD that has to be opened through a custodian bank. It’s a 10-year CD with a 2.38% interest rate, and it has only a 6-month early withdrawal penalty. Minimum deposit is $100,000. I have more details in my review of this special CD.

The other two CDs that I added this week have much shorter terms. One is a special 18-month CD with a 1.15% APY from Northern Bank & Trust Company, and the other is a 12-month CD with a 1.05% APY from DollarSavingsDirect.

Local CD Deals

We lost two great local deals this week. One was the special 1.25% 6-month CD special at Quabbin Online Credit Union. Its new 6-month CD rate is only 0.75%. This is an online branch of Athol Credit Union which serves parts of Massachusetts.

The other great local deal that ended this week was at City County Credit Union in South Florida. This local deal had been especially nice since the credit union was open to residents of many counties throughout the Florida. It was offering a 2.02% APY 5-year CD (2.28% for a premium relationship). The rates fell by over 50 bps. The new standard 5-year rate is only 1.51% APY.

I added two new local CDs. The best one is a special 5-year CD at Potlatch No 1 Federal Credit Union. It’s celebrating its 75th anniversary with a 2.75% APY. This credit union is open to residents in parts of Washington State and Idaho.

The other addition is a 5-year IRA CD and CD at Credit Union West in Arizona. It’s offering a 5-year IRA Jumbo CD with a 2.20% APY. The non-IRA version has a 1.95% APY. This credit union is open to residents in Arizona’s Maricopa and Yavapai counties.

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 June 21, 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)
  • 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

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
10 Yr UST note/bond 2.51%, effective rate somewhere around 3% in UST interest non taxable states. A very good week.
Shorebreak   |     |   Comment #2

“That didn’t carry over to CD rates. I’m still seeing more rate cuts than rate increases for long-term CDs.”

While long rates have already begun to drift higher, a meaningful improvement in savings account rates and other deposit rates seems further off. These are short-term rates, and thus more closely anchored to the federal funds rate. Also, they are less directly driven by market forces, and thus less likely to rise in anticipation of economic improvement. These bank rates are more likely to rise after, not before, stronger growth takes hold.

Anonymous   |     |   Comment #3
Yes, it was a very good IF you were not invested in US Treasury securities which I have not been for nearly a decade.
Roush   |     |   Comment #4
Sorry you missed the great total returns on treasuies  during the past decade.  
Anonymous   |     |   Comment #5
Well, I think the returns back in the mid-1980s when 30 year T-Bonds yielded close to 15% were far more rewarding than the previous decade.
Roush   |     |   Comment #6
Yes, I guess it's all relative....and I missed the 30yr, 15%'s also....for some reason at the time, I just could't pull the trigger  ;-)