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Competitive 5-Year CD Rate at BBVA Compass in Several States

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The latest bank to raise its 5-year CD rate to 2% is BBVA Compass. On Friday it raised its 5-year CD rate from 1.25% to 2.00% APY. This is the only CD term that is competitive. Its shorter-term CD rates continue to be low. This 5-year CD rate is listed in the bank’s CD rates page as of 9/16/2013. The rates may vary by location, but this 2% appears to be listed for all of bank’s market areas. Thanks to DA member OldGuy for mentioning this new rate in the comments.

Last year BBVA Compass was offering an extra 10 basis points for customers who also open a checking account. I’ll update this post once I learn if this still applies. Also, I’ll update when I get confirmation on the bank’s early withdrawal penalty. Last year I was told that the early withdrawal penalty is equal to $25 plus 1% of the amount withdrawn.

Update: I called BBVA Compass today, and I was told that you can get an extra 25 basis points on the CDs if you also open a checking or savings account with the CD, and your combined balance (can include the CD) is at least $25,000. I also confirmed that the early withdrawal penalty is equal to $25 plus 1% of the amount withdrawn. So if you withdraw $5,000, the penalty would equal $75 ($25 + 0.01*5,000).

Availability

To open an account I've been told BBVA Compass requires new customers to live within 60 miles from a branch. BBVA Compass branches are located in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas.

Checking Account Promotion

If you do open a Compass CD, you may also want to consider the bank's latest checking account promotion in which you can earn a Samsung Galaxy Tab 3. This is scheduled to last until September 30, 2013. Please refer to my BBVA Compass bonus review for more details.

Bank Overview

BBVA Compass is a large bank that operates 688 branches in Texas, Alabama, California, Arizona, Florida, Colorado and New Mexico. It's under the bank holding company Banco Bilbao Vizcaya Argentaria S.A., the second largest bank in Spain.

BBVA Compass has an overall health score at DepositAccounts.com of A+ with a Texas Ratio of 5.98% (excellent) based on June 2013 data. Please refer to our financial overview of BBVA Compass for more details. The bank has been a FDIC member since 1964 (FDIC Certificate # 19048).

How This CD Rate Compares

The highest 5-year CD rate that’s nationally available is 2.05% APY at iGObanking.com. This is accurate as of 9/16/2013.

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.
Related Pages: CD rates

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9 Comments.
Anonymous
  |     |   Comment #1
It's nice to see the 5 year rate go up.  I'm still keeping my powder dry.  2.25% is starting to look good.  I did buy some muni's that are paying 3.75% recently but they have abot 10 years to mature.
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5
Anonymous
  |     |   Comment #2
#1 You bought munis with Detroit bankrupt? I wonder how many potential Detroits are lurking out there. Plus if interest rates go up it will create problems for nonfed government agencies which can't just print money to pay their debt.
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5
Anonymous
  |     |   Comment #3
I pick very carefully my bonds and most are also insured.  I would never invest in a bond in a city like Detriot.  Even with Detriot the bond failure rate is extremely low.  I usually pick water or sewer services.  I live in NY and enjoy a tax break.  I have a very deversified portfolio
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7
Anonymous
  |     |   Comment #4
#3 Good answer. I'm thinking of moving into Brokered CDs to get higher yields because they are FDIC insured, and there are several 10-years @ 3.25 available now. Never considered insured munis but maybe I will research them in future.
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3
Anonymous
  |     |   Comment #5
Insured munis mean nothing... you have to see what the rating is underneath the insurance rating.... don't forget if things ever go down the toilet and a bunch of insured munis were to default the insurance companies might be in more trouble than the municipals. To say a muni is insured is to say you have faith in all the insurers.... I don't.
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5
Anonymous
  |     |   Comment #6
Pick a muni bond on it's own merits not because it is insured,imo.
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4
Anonymous
  |     |   Comment #7
When I bought munis, I always bought state general obligations.
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5
Anonymous
  |     |   Comment #8
Compass will also do these CD's as IRAs with the same rate. Just did one today. No maintence fees either.
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4
Anonymous
  |     |   Comment #9
I said most have insurance. Private insurance is just as good as the insurers ability topay.  The same can be said for annuties.  The only ones that can truly insure is the FDIC if they use the feds printing press.  You should always look at the underlying rating of a bond.   I use muni's to diversify.  I own stocks, bonds, MLP (Master limited Partnershipse,REITS and many CD's.  I sleep at night with the 10 bonds I own.   I don't see the bond market collapsing. I  mostly pick revenue bonds for sewer and water some in NYC.   
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4

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