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 July 12, 2013


Survey of the Best CD Rates for July 12, 2013

The steady rise of Treasury yields ended this week when Fed Chairman Ben Bernanke reassured the markets on Wednesday that the Fed isn’t in a hurry to taper its bond-buying program. So it’s premature to say we’ll soon see many higher CD rates. Just like previous years, this may be another cycle in this awful interest rate environment. Nevertheless, we did see some more CD rate increases this week, and most of these rate increases have been on the longer terms. As I mentioned earlier today, bankers are forming their CD strategies, and they are hoping to attract deposits into long-term CDs. So that explains why we’re seeing rate increases. There are two CD rate increases to note this week.

The first notable rate increase was at Salem Five Direct. It was actually a new CD special with a 2.00% APY on a 5-year term. That’s the first 2% 5-year CD that we have seen a bank offer nationwide since January.

The other rate increase was at Northern Bank & Trust Company. Its 18-month CD rate went down, but its 3-year and 5-year CD rates increased to very competitive levels (1.50% APY and 1.75% APY).

I also added an example of a 10-year non-callable CD rate currently available from new issued brokered CDs at Fidelity. The top rate that I found this afternoon was 2.90%. I found a 3.00% earlier today.

As I described earlier today, bankers have been planning to entice savers into long-term CDs in expectations that rates are on the rise. This could backfire on them if the recent increases in Treasury yields are just a false alarm. If this awful interest rate environment continues for many more years, these recent CD rate hikes could be good deals for savers.

Local CD Deals

Like the nationally available CDs, there were a few rate increases on the local long-term CDs this week.

Dayton Firefighters Federal Credit Union in Ohio increased its 4-year and 5-year CD rates by around 12 bps. Its 5-year Jumbo CD yield is now 2.11%.

Columbia Bank in New Jersey increased its 7-year CD rate by 5 bps and increased its 6-year CD rate by 15 bps. Its 7-year CD yield is now 2.15%.

Randolph-Brooks Federal Credit Union in Central Texas increased its 7-year and 6-year CD rates by about 10 bps. Its 7-year CD yield is now 1.87%.

I also added a good 1-year CD deal for those who live in Southern California. HAB Bank (formerly known as Habib American Bank) is listing a very competitive 1-year CD rate for its California branches. The CD has a 1.15% APY. A reader mentioned being able to get this increased to 1.20% APY for a $100K deposit.

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 July 12, 2013

Under 1-Year CD Rates

  • Noteworthy Local Deals

1-Year CD Rates

  • Noteworthy Local Deals
  • Gulf Coast Federal Credit Union - 1.50% 12-month CD (Corpus Christi, TX metro)
  • City County Credit Union - 1.31% 1-year IRA-only CD (many FL counties)
  • LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
  • Doral Bank NY - 1.20% 1-year CD (NYC)
  • HAB Bank - 1.15% 1-year CD (Southern California)
  • Beal Bank - 1.11% 1-year CD (Southeast FL)
  • General Electric Credit Union - 1.02% ($100K) 1-year CD (Cincinnati OH metro)
  • 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