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 September 13, 2013


Survey of the Best CD Rates for September 13, 2013

Treasury yields fell slightly this week due to weak consumer confidence and retail sales numbers. Even with the drop, the yields remain high compared to earlier this year, and this environment is having an effect on banks. We continue to see more banks and credit unions raising their long-term CD rates.

For nationally available long-term CDs, we saw rate gains at GE Capital Bank, GE Capital Retail Bank, Nationwide Bank and Intervest National Bank. However, none of these banks raised their 5-year CD yields to 2.00%, but they came close. Nationwide Bank raised its Jumbo 5-year CD yield from 1.81% to 1.97%. Both GE Capital Retail Bank and Intervest National Bank raised their 5-year CD yield to 1.95%.

The number of banks offering nationally available 2% 5-year CDs remains at five. The highest rate continues to be at iGObanking.com with a 2.05% APY. If you prefer brokered CDs, you can also get this rate from new-issued non-callable CDs through Fidelity (that was the top 5-year rate when I checked this afternoon).

For terms over 5 years, Apple Federal Credit Union continues to be the best deal for nationally available direct CDs. Its long-term CD rates went up 10 basis points this week. The new yields are 2.50% for a 10-year CD and 2.10% for a 7-year CD.

Brokered CDs continue have the best rates for terms over 5 years. The top rates remain the same as last week: 3.25% for a 10-year CD and 2.75% for a 7-year CD. Both were new-issued non-callable CDs.

Local CD Deals

There weren’t many local CD rate changes this week. Like the nationwide CDs, we continue to see a few higher long-term CD rates.

One noteworthy change this week was new 2% CDs with shorter terms. Two institutions began offering 30-month CDs with 2.00% APY. The first is Institution for Savings in Massachusetts. Before this 30-month CD, it was offering a 2% 40-month CD. The other is Firelands Federal Credit Union in Ohio. It ended its short-term CD specials, and replaced them with a 2-year, a 30-month and a 3-year CD special. The 30-month CD has a 2.00% APY, and the 3-year CD has a 2.25% APY.

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 September 13, 2013

Under 1-Year CD Rates

  • Noteworthy Local Deals
  • Suntide Credit Union - 1.50% 6-month CD (Corpus Christi, TX metro)
  • 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)
  • 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)

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
kcfield   |     |   Comment #1
Ken: I just wanted to take a minute to thank you for the excellent work that you do on this site. The rates, unlike other site, are always current, and your blog speaks to us in "real time" about the best savings, checking, and cd opportunities out there. This site has helped my family and now our church withfinancial planning.
Anonymous   |     |   Comment #2
Ditto kcfield. I'm sure we all have our stories about Ken's site. About two years ago when just about every CD out there was 1% or less Ken pointed out a CU a few blocks from my house that I never knew existed. We got a 2.27% CD that I think was the highest in the nation back then. Plus it has an add-on feature we have used several times. GO KEN!
OldGuy   |     |   Comment #4
I see MidFirst Direct is now posting a 2.25% APY 5-year CD.  According to an earlier post on this site, its CDs are available in 11 states.


Also, BBVA Compass is posting a 2% APY 5-year CD out here in sunny Southern CA.
Anonymous   |     |   Comment #5
OldGuy I called Midfirst to ask if its 7-year 2.5% CD could be purchased on-line or by phone and the rep said only available in two states.
OldGuy   |     |   Comment #6
"MidFirst Direct" is the online branch of Midfirst Bank, which, according to its website, offers online accounts in 11 states.  The 7-year CD may be a branch-only account.  Anyway, comments on Ken's 2012 post about MidFirst Direct indicate that a few readers had trouble opening accounts because of ChexSystem inquiries.  I've run into this problem elsewhere--eg, iGOBanking--and have no desire to repeat it.  Therefore, I'm going to pass on this bank.
OldGuy   |     |   Comment #7
Curiosity got the better of me and I went to the website of "MidFirst Bank" (as opposed to "MidFirst Direct.")  I typed in CA as my residence state and got a table of CD rates that included the 2.50% APY 7-year. I then stumbled upon Ken's most recent (8/30) post about "MidFirst Bank" which indicates that, while the 7-year CD can be opened online, it is available only to residents of two states and does not lock-in a rate until funds are received.  All this is another reason for me to think this bank's CDs are a headache ready to happen for anyone who ventures to open one online.
Anonymous   |     |   Comment #8
OldGuy I think you're right. When I called I said to the rep that it wasn't clear from either their website or other sites that mention MidFirst. There was really no explanation offered, only telling me the rate for other than those two states which was much lower. So I told her someone there should address this issue, particularly because this incomplete information is on other sites.
OldGuy   |     |   Comment #9
I'm also interested in the availability nationwide of the CDs of Northern Bank & Trust Co., which Ken (based quite rightly on a statement on its website) treats as available everywhere.  Several people have been told by CSRs, however, that this isn't the case.  I sent NB&TC an email Friday asking about the availability to CA residents of the 1.60% 3-year CD, but haven't heard back.  Does anyone have experience with this question?  
KenBDG   |     |   Comment #10
@OldGuy, Thanks for checking on availability. I also sent another email. Unfortunately, small banks frequently change their policies on eligibility. And they often don't do a good job at updating their documentation on their website.
OldGuy   |     |   Comment #11
The bank hasn't responded to my email.  Maybe it's thinking about it.