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 28, 2013


Survey of the Best CD Rates for June 28, 2013

The long-term Treasury yields pretty much held steady this week after huge yield increases in the previous week. If we keep seeing rising Treasury yields, CD rates hikes will likely lag as I described in this blog post. Hopefully, it’ll encourage at least some banks and credit unions to raise their CD rates. There were hints of that happening this week.

One example was at Melrose Credit Union. It raised all of its CD rates by 10 bps. It’s 5-year CD yield is now very close to 2% (1.96% APY).

State Bank of India - New York increased its 5-year CD this week from 1.45% to 1.80% APY. This 1.80% APY is now the highest 5-year CD yield that’s nationally available from a bank. However, this bank can only open CDs at a branch or by mail. The last time I checked, they did not have any online account service.

CIT Bank decreased its 3-year CD Jumbo rate from 1.35% to 1.30% APY. However, it added a new 4-year term. Its 4-year Jumbo CD rate is very competitive at 1.55% APY (non-Jumbo of 1.32% APY).

Another nice CD deal at an internet bank is the special 18-month CD at Doral Direct. It has a 1.02% APY, but more importantly, there’s a special one-time no-penalty early withdrawal option (see my review).

The best deal this week is at an all access credit union. I just learned this afternoon that USAlliance Federal Credit Union is offering a 2-year CD special with a 2.00% APY. It also has a 13-month CD special with a 1.31% APY. I have more details in my CD review.

Local CD Deals

There were more hints that CD rates may follow Treasury yields for the local CDs.

The best deal this week is at First Republic Bank which has branches in many of the large metro areas in CA, CT, FL, MA, NY and OR. You can get 2.50% APY on a 6-year CD and a 2.25% APY 5-year CD with a checking account relationship. The rates are 25 bps lower without the relationship. I have more details in my CD review.

Another noteworthy local deal is at Frick Tri-County Federal Credit Union which has 3% CD. It has been awhile since I’ve seen a 3% CD. The CD has a very long term of 10 years, but it’s nice to see 3% CDs again. Credit union membership is open to persons who live or work in parts of western Pennsylvania.

Not all was good news for the local CDs. The 2.75% special 5-year CD ended at Potlatch No 1 Federal Credit Union (P1FCU) which was available in parts of WA and ID.

It’s not a CD, but I included it on the list since there was a rate guarantee. Capital One branches are no longer offering 1% APY guaranteed for one year on its checking account. This guaranteed rate has fallen to 0.50%.

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 28, 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)

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
I opened one of the 2% 2 year CDs, it was pretty easy.
Anonymous   |     |   Comment #2
Was this with US Alliance by mail or did you have to go in to do it?  Can you tell me what their EWP is for that 2 year CD?  I didn't see it in the review.  Thanks.
Anonymous   |     |   Comment #4
#2........I opened the CD on line.
scottj   |     |   Comment #3
Found this on EWP:

If you take an early withdrawal on a Certificate Account of over one year, you will forfeit an amount equal to all dividends from the date of the initial deposit or last renewal up to the date of withdrawal, up to a maximum of 180 days of interest.   For such a short term on a decent rate I doubt many would be closing early
Anonymous   |     |   Comment #5
I ladder my CDs so I never worry about closing early, especially a 2 year CD.
Anonymous   |     |   Comment #6
Thanks for the EWP info.  I rarely close a CD early especially a 2 year but I don't like surprises.  Doesn't hurt to know everything before getting with a new bank or cu.
Anonymous   |     |   Comment #7
Anonymous#1 -- How did you fund your account? Are there various choices?
Anonymous   |     |   Comment #11
#7.....I funded it via a transfer from my American Express savings account..... you can use a credit card but they only allow a $100.... transfer they allow $100K.
Anonymous   |     |   Comment #8
I also opened a 2 year.  The only way to fund your account is with an electronic direct withdrawal from your checking or savings account.  There is an option to use a credit card but the maximim was silly.  
Anonymous   |     |   Comment #12
#8.... I used to do a 5 year ladder but not now.... now I only use short term CDs......hoping rates rise by 2015 then  will ladder 5 years again.
Anonymous   |     |   Comment #9
In this low interest enviroment with no certainty how much longer this will last, what is the best strategy for investing in CDs?  What I mean is, is the traditional CD ladder the best approach?  Or the dumbell CD ladder approach?  Or just stick to short term CDs? 

Anonymous   |     |   Comment #10
#9 I'd wait a few months before tying up your money if you can. The news said mortgage rates jumped the most in a single week in many years. Treasury yields are also moving up fast. It will take awhile for deposit rates to catch up to Treasuries and mortgages, but it will happen.