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 August 23, 2013


Survey of the Best CD Rates for August 23, 2013

Treasury yields fell today after the release of weak housing data, but the yields are still near 2-year highs, and there is speculation that we’ll see the 10-year yields reaching 3% two weeks from now if the August employment report is strong.

Last month we saw a few banks increasing their long-term CD rates. That’s when we finally saw the return of 2% 5-year CDs at internet banks. We’re not seeing more banks jumping on the bandwagon of higher CD rates. We still just have three banks offering 2% 5-year CDs that are nationally available.

Higher CD rates have been more apparent with brokered CDs. I checked Fidelity’s new-issue CD offerings today, and there are now 2% 5-year non-callable CDs. In addition, 7-year and 10-year rates went up this week. The highest non-callable 10-year CD rate is 3.20%. This is a brokered CD from Discover Bank. It’s interesting to note that Discover Bank’s 10-year CD that’s available directly from Discover’s internet bank has a yield of only 1.90%.

There’s just one addition this week to the list of nationally available CDs. The all-access Communitywide Federal Credit Union increased its 4-year and 5-year CD rates this week. Its 5-year CD now has a 2.00% APY. In addition, the credit union came out with a 1-year CD special that has a 2.00% APY. There is a $100K maximum deposit, and it requires a checking account with direct deposit.

Local CD Deals

We lost a few local CD specials this week. M&T Bank ended its 2% 5-year CDs. These CD rates varied by location, but some locations had yields as high as 2.22%. That’s down to 1.66%.

NavyArmy Community Credit Union in Corpus Christi Texas has long offered the best mid-term CD in the nation. Its 30-month CD yield fell this week from 2.30% to 2.05% (2.00% for under $100K). However, its 2-year CD yield increased from 1.85% to 1.95% ($100K), and its 1-year CD yield increased from 1.45% to 1.60% ($100K). This credit union is just one of several credit unions offering top CD rates in the Corpus Christi metro area.

I added two institutions to the list this week.

The first is Dollar Bank which has branches in the Pittsburgh and Cleveland metro areas. It raised its 10-year CD yield to 2.75% and its 6-year CD yield to 2.00%.

The second is Firelands Federal Credit Union in Ohio. It was offering three promotional CDs with very competitive rates. They changed the promotion on Tuesday, and now there are two top rates: a 1.75% APY 1-year CD and a 1.25% APY 9-month 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 August 23, 2013

Under 1-Year CD Rates

  • Noteworthy Local Deals

1-Year CD Rates

  • Noteworthy Local Deals

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 can remember when the banks would offer rates on a 5 year CD equal to what the 10 year treasuries were paying.....any 2.85% 5 year CDs out there... I didn't think so.
Anonymous   |     |   Comment #2
The brokered CD at Discover looks like a good deal. Does anyone know if you can buy it from any broker or just Fidelity.

Also, First NBC Bank is offering a 5-year @ 2.38% but minimum is $100,000.
paoli2   |     |   Comment #3
#2  A couple of days ago, I checked Vanguard Brokerage and they were selling the Discover Bank 10 year CDs for the same interest rate as Fidelity.  We use both brokerages and usually they do have the same CDs at the same rates.  It all depends how fast they sell out of the amount they have for sale.  If what you want isn't available at Fidelity, you can probably find it on the Vanguard CD page. 
Anonymous   |     |   Comment #4
Doesn't anyone expect the CD rates to increase any time soon?  (2% for 5yr and 3.2% for 10yr is too low)
Anonymous   |     |   Comment #6
#4 and #5:  I also expect the CD rates will be increasing soon.
Anonymous   |     |   Comment #5
i expect the CD rates to increase #4
Anonymous   |     |   Comment #7
I think it's wishful thinking about rates going up soon.  I just don't think it's so but hope I'm wrong.
Anonymous   |     |   Comment #8
Folks get real, once the markets start tanking(and that could be soon) interest rate products will be in demand and rates will fall. 
Anonymous   |     |   Comment #9
For people who live in high tax states like New York or connecticut, the Discover 3.2% 10 year CD isn't such a good ddeal relative to treasuries.  that's because treasuries are state and local tax deductible whereas CDs aren't.  The after tax yields are therefore the same, and treasuries are much more liquid.
Anonymous   |     |   Comment #10
Anon #9,

I agree with your regarding the taxability of CD vs treasuries.  However, the treasures with a coupon above 3% are selling above Par with a Yield around 2.7% before taxes.  Don't you care you'll be losing principal at maturity?