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 8, 2013


Survey of the Best CD Rates for June 8, 2013

I’m a day behind in my usual postings of the weekly recaps. I usually post my CD recap on Fridays and my liquid account recap on Saturday. This week I’m posting my CD recap today and I’ll post my liquid account recap on Sunday. I usually give my economy overview in my liquid account recap, but I’ll say a few words about the economy today. Friday’s job report was slightly better than expected, and that led to a big jump in Treasury yields. However, for the week, they were up just a little bit. Nevertheless, that’s the sixth straight week of yield increases. The good news for savers is that we did see a few banks and credit unions raise their long-term CD rates. It’s too soon to call this a trend, but it offers a faint glimmer of hope for savers looking for higher deposit rates.

For CDs that are available nationwide, there was just one CD on my list with a rate hike. That’s the 10-year CD at Apple Federal Credit Union. The yield increased from 1.90% to 2.00%. It’s nice to see that the 2% nationwide CD remains alive.

There are three local CD rate hikes, and I’ll cover those in the following section.

In addition to CD rate hike at Apple, I also added one new CD to the list. It’s the 16-month CD at DollarSavingDirect. It has long been offering a 1.00% APY on this CD, and thanks to a reader’s tip, I realized this is now quite competitive as compared to 12-month and 18-month CDs. So I added it to the 18-month CD list.

Not all was good news this week. We still had some rate cuts. We lost the last strings-free 2% 5-year CD. Mountain America Credit Union cut its 5-year CD yield from 2% to 1.85%. You can still get around 2% at two all-access credit unions, Connexus and Stanford, but these require an active checking account.

Another noteworthy cut was at EverBank. I’ve long listed its intro rate of its money market and checking account since this rate is guaranteed for the first six months for new accounts. The guarantee makes this like a CD, but with liquidity. Unfortunately, this 6-month guarantee rate fell from 1.25% to 1.10%. It remains a very good deal when compared with 6-month CDs.

The third rate cut was at CIT Bank. Its 1-year Achiever CD yield fell from 1.05% to 1.00%. This requires a $25,000 minimum deposit, but don’t forget its two nice features: one add-on deposit and one rate bump-up option.

Local CD Deals

For the local CD deals, I’m starting with the good news. Three institutions raised their long-term CD rates. First, San Antonio Federal Credit Union (SACU) raised its 10-year CD yield from 2.20% to 2.40% and its 7-year CD yield from 1.80% to 2.00%.

HAPO Community Credit Union in Washington State raised its 4-year and 5-year CD rates by 15 bps. Its 5-year CD yield is now 2.00%, and its 4-year CD yield is now 1.90%.

Lastly, Columbia Bank in New Jersey increased its 7-year CD yield from 2.00% to 2.10%.

Just like the nationwide CDs, the local CDs still had a few rate cuts. The most noteworthy rate cut was at Libertad Bank which allows anyone in Texas to open its CDs. Its special 1.50% APY 15-month CD special ended, and it has been replaced with a 1.25% APY 18-month CD. This is still a good deal, but it’s not nearly as nice as the 15-month special. It also stopped listing its money market special which guaranteed a 1.50% APY until the end of June 2014.

Another noteworthy rate cut was at Security First Credit Union in South Texas which cut its Jumbo 5-year CD yield from 2.43% to 2.07%. There was also a noteworthy cut at Denver Community Credit Union which cut its Jumbo 5-year CD yield from 2.10% to 1.90%.

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 8, 2013

Under 1-Year CD Rates

  • Noteworthy Local Deals
  • Homebanc, N.A. - 1.30% (max $75K) 4-month CD special (Central Florida)
  • 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)
  • Prairieland Federal Credit Union - 1.06% ($100K) 6-month special CD (Central IL)
  • Oritani Bank - 1.02% checking intro rate until 1/2/14 (Northeast NJ)
  • Doral Bank NY - 1.00% 6-month CD (NYC)
  • Your Community Credit Union - 1.00% ($100K) 6-month CD (Dallas-Fort Worth and Houston, TX)
  • Flagstar Bank - 1.00% 6-mo intro rate savings account (Michigan)

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
  • Gulf Coast Federal Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
  • Libertad Bank - 1.25% 18-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
I also picked up on that Everbank reduction.  I'm only about 90% certain I understand the impact on myself.  I opened three or four months ago with the 1.25% guarantee (for six months).  I'm assuming that guarantee is still operative at the (originally) promised rate.  In other words, I'm assuming the 1.10% rate only applies to new accounts going forward, not retroactively.  That would make the most sense and, as I already said, I'm about 90% sure on this.  But 90% does not equal 100%.  
Anonymous   |     |   Comment #2
I am holding off for 6 months or so before opening any new CDs as I am sure rates will be going back to at least 2% as banks will have to comete with the 10 yr treasury eventually.
Anonymous   |     |   Comment #3
#2, I just read an article that the big banks are awash in money and are lending the little banks at bellow any rate the treasury is quoting on the open market.
As long as Bernanke prints money, do not expect money rates to go up, it may be a year or two before we see any movements up
The five big banks have trillions of idle money sitting aside and will be very surprising to see any savings rates go up under such conditions..
Anonymous   |     |   Comment #4
I was sick of low cd rates so I invested with a investment advisor 3 mo. ago to see if I could do any better, well I've lost almost 2% of my money in the stock market! So I can assure you that you aren't missing anything!!!! The stock market is a loser also!
Anonymous   |     |   Comment #5
#4, Rest assure that you are doing what Bernanke wants.  Giving money to the 1%.
Anonymous   |     |   Comment #6
Why is Montauk Credit Union missing from this list? 7 year cd 2.75%