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 9, 2013


Survey of the Best CD Rates for August 9, 2013

Expectations grew this week that the Fed will announce the tapering of its bond buying at its September meeting. That didn’t have much effect on Treasury yields this week. This was another week of slightly falling Treasury yields. The 10-year Treasury yield fell from 2.63% to 2.57%. Treasury yields continue to hold up pretty well, and that appears to be having some effects on CD rates.

CD rates continued to be fairly steady this week. There was one new 2% CD that’s nationally available. State Bank of India - New York raised its 5-year CD yield from 1.75% to 2.00%. This can be opened by mail from any state. With this addition, we now have four banks that are offering 2% 5-year CDs that are nationally available. The other three include EverBank, iGObanking.com and Salem Five Direct.

Not all of the new CD specials have long terms. Two new ones have terms between 1 and 2 years.

First, Fort Knox Federal Credit Union is offering two special CDs: a 1.20% APY 14-month CD and a 1.40% APY 23-month CD. Anyone can join this credit union via an association. However, you might not want to if you know its history.

Second, GE Capital Retail Bank (formerly MetLife Bank) has a new 15-month CD special with a 1.15% APY. It seems like they’re competing against the other GE bank, GE Capital Bank, which has a 1.10% APY 18-month CD. I hope this competition continues.

Local CD Deals

Just like the nationwide CDs, there have been a few local banks and credit unions that have raised their CD rates since the rise of Treasury yields. The largest of theses is M&T Bank which has hundreds branches mostly in the Mid Atlantic states. It’s offering a special 5-year CD with a yield that ranges from 1.97% to 2.22% depending on the customer’s residence.

The Massachusetts-based HarborOne Bank has two nice CD specials: a 2% APY 4-year CD and a 1.05% APY 7-month CD. These can be opened online by anyone in New England. HarborOne was just recently converted from a credit union into a bank.

OmniAmerican Bank also used to be a credit union, but that conversion took place back in 2005. It recently increased its 5-year CD yield to 2.00%. The bank has branches throughout the Dallas/Fort Worth metro area.

The problem with these long-term CDs is that 2% is still low compared to the good old days when 5% CDs were easy to come by. Locking into these current low rates is worrisome. Consumers Credit Union in Michigan has a CD special that addresses this concern by allowing one penalty-free withdrawal during the term. With a top yield of 2.00%, this special 5-year CD is a good deal.

If you can’t get a penalty-free withdrawal option on your long-term CD, you may want to stick with short-term or mid-term CDs. The problem with these is that you typically can’t get rates much higher than the best online savings account rates. However, if you live in certain areas of the country, you have some nice options.

One hot spot for savers is the Corpus Christi area of Texas. I have long been reporting on the 30-month CD at NavyArmy Community Credit Union. Its yield fell from 2.50% to 2.30% on July 1st, but it remains a great deal. But there’s now an even better deal for those who live in the Corpus Christi area. Suntide Credit Union has a 2-year CD with a 2.35% APY and a 1-year CD with a 2.00% APY.

A more recent hot spot for savers is the Spokane area of Washington State. I reported on two hot deals in that area this week. The first one is the 17-month CD special with a 1.70% APY at Numerica Credit Union. The second one is the 18-month CD special with a 2.02% APY at Horizon Credit Union. The nice thing about Washington State is that they make it easy for their credit unions to offer membership to all residents of the state. So anyone in Washington State should be able to join these two credit unions and take advantage of these CD deals.

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 9, 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
In the good'ol days you walked into a bank and purchased a decent-rate CD then went home happy. As my CDs renew I'm having to research everything from callable 20-year CDs to floating rates to index-linked. Then there are munis yielding 5% depending on the grade. Add to the confusion, bank-affiliated brokers promise "a conservative portfolio with returns that beat inflation while minimizing risk". I think I'll stick to the best deals I can find on DA and live on the cheap until rates finally rise to reasonable levels.
Anonymous   |     |   Comment #2
TRULY CD rates are the pits.   If only I were a good stock trader I could risk investing myself ,, but alas, I am not up to all the antics and tricks that the stock market can do to sepate a fool and his money.