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.

Featured Savings Rates

Popular Posts

Featured Accounts

Survey of the Best CD Rates for September 6, 2013


Survey of the Best CD Rates for September 6, 2013

Today’s employment report was weak, and that has raised doubts that the Fed will start tapering in its September 17-18th meeting. That caused Treasury yields to fall today, but the yields are up for the week. The 10-year Treasury note yield ended the week at 2.94%. The yield came very close to 3% this week.

The higher Treasury yields do seem to be having an effect on long-term CD rates.

Brokered CD rates continue to rise. Today the highest 10-year brokered CD rate listed at Fidelity was 3.25%. One month ago, the highest 10-year brokered CD rate was 3.00%.

The number of banks offering 2% 5-year CDs continues to rise. We now have five banks offering nationally available 5-year CDs with yields of at least 2%. The two new ones this week are EverBank which raised its 5-year CD yield from 1.91% to 2.01% and State Farm Bank which raised its 5-year CD yield from 1.36% to 2.00%.

We’re not seeing much movement on the short end. We occasionally get a short-term CD deal, but these don’t last long. Aspire Federal Credit Union’s 15-month CD special has ended. This had a 1.25% APY. Fort Knox Federal Credit Unions reduced the rates of its 14-month and 23-month CD specials by 10 basis points.

I posted on a new short-term CD deal this week. It’s at First Flight Federal Credit Union in North Carolina. The CD specials include a 15-month CD with a 1.25% APY and a 23-month CD with a 1.50% APY. Anyone can join the credit union via an association.

As we learned this week, all-access credit unions may become more difficult to join. The NCUA sent a letter to federal credit unions warning them about making it too easy to qualify for membership via an association. This is a little worrisome since many of the best CD deals come from credit unions.

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 at Bayer Heritage Federal Credit Union which has branches in parts of WV, OH and SC. Its 5-year CD yield increased from 2.02% to 2.15%, and its 4-year CD yield increased from 1.76% to 1.89%.

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 6, 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
Hi Ken, Evantage Bank Mega Money market account jas dropped the rates:

0.90% APY* on daily balances less than or equal to $35,000.00
0.50% APY* on daily balances greater than $35,000


Shorebreak   |     |   Comment #2
The 7-year Treasury Note yield closed at 2.38% today. I like watching this particular indicator for what we may expect in equivalent CD rates for that maturity.
Robert   |     |   Comment #3
I'm not sure why Ally hasn't raised their 5-year CD rate.  They could raise it to 1.59% and still not be in the top five according to Bankrate.com.  For the longest time, Ally always seemed to set their rates to be just out side of being in the top five. But maybe now they are being a little more greedy?
cumulus   |     |   Comment #4
Re #3 Robert
> I'm not sure why Ally hasn't raised their 5-year CD rate ...
Could well be lots more people are taking advantage of Ally Loyalty
Rewards and treating that 1.50% 5yr CD as a 1.75% 5yr CD; with just
minor planning and a little patience, it's pretty easy to do.
Anonymous   |     |   Comment #5
People, FDIC sets the interest rates, not the banks, they have a list of ranges faxed weekly and must comply to it or else.
Anonymous   |     |   Comment #6
#5  That's true for banks that are not well capitilized.  But well capitilized banks don't need to comply with the list.  It's just plain greed on their part.
Anonymous   |     |   Comment #7
Recently went to one of the big banks to withdraw my CDs and scatter them among other banks and CUs offering much better rates. The rep expressed concern that this bank had become non-competitive on CD rates and were losing depositors whom they could not convince to move money to affiliated brokerage firms. I felt good walking out after their "better alternatives to CDs" sales pitch and getting much better rates elsewhere, but of course still low in comparison to the original rates in these CDs.
Anonymous   |     |   Comment #8
To Anonymous - #6,

FDIC rule is effective for the big banks too. Wells Fargo gets those rates set according to FDIC rules. The banks can set them lower but not higher.
Anonymous   |     |   Comment #9
To Anonymous - #8,

Please read the article from the FDIC website regarding rate caps.  The "interest rate restrictions applicable to less than well capitalized institutions".


Are you stating that Wells Fargo is not well capitilized?