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 December 20, 2013


Survey of the Best CD Rates for December 20, 2013

Treasury yields increased this week after the Fed announced the start of tapering. Apparently, the start of tapering wasn’t offset by the Fed’s additional language saying that it intends to keep rates low for an even longer time after the unemployment rate threshold is reached. The Fed has less control over the long-term rates, so we may continue to see higher long-term Treasury yields, and that may put pressure on banks to raise their CD rates.

This week we continued to see banks increase their 5-year CD rates. The internet division of Flushing Bank, iGObanking.com, increased the rate of its 5-year CD from 2.00% to 2.15% APY. That was the top 5-year rate from a nationwide bank until EverBank increased its 5-year CD rate from 2.12% to 2.16%.

There was also an all-access credit union that raised its CD rates. Melrose Credit Union raised all of its CD rates, and now they’re very competitive. Its 5-year CD rate increased from 1.96% to 2.12% APY, and its 1-year CD rate increased from 0.95% to 1.10% APY. This 1-year CD rate is the highest available nationwide. Connexus Credit Union and AloStar Bank of Commerce also offer this same 1-year rate.

These rate increases are nice, but these long-term CD rates still don’t come close to the CD rates that PenFed is offering. PenFed’s 5-year CD yield of 3.04% continues to be the highest rate by far. PenFed’s 4-year CD yield is much lower (2.22%), but it has one advantage. Its early withdrawal penalty is only 6 months of interest compared to 1 year for the 5-year term. So if you compare PenFed’s 4-year CD with PenFed’s 5-year CD, the 4-year CD comes out ahead when closed early for periods under 28 months. Due to this, I added PenFed’s 4-year CD to the list for terms of 1 year, 18-months and 2 years.

Local CD Deals

There weren’t many rate changes this week for the local CDs in my tables. Just one noteworthy rate cut was at Institution For Savings in Massachusetts. It’s no longer offering 2% APY on its 3-year CD. Since its new rate is only 1.00%, I removed it from the table below. Institution for Savings’ 4-year and 5-year CD yields continue to be 2%.

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.

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 December 20, 2013

Under 1-Year CD Rates

Communitywide Federal Credit Union2.00% ($50K max) 6-mo special CD w/active chkaccount review
EverBank1.10% checking/MMA intro 6-month rate ($100K/$50K max)account review
Seacoast Commerce Bank1.10% ($50K min) 10-month CD
Seacoast Commerce Bank1.00% ($50K min) MMArate guaranteed to 9/30/14
Xceed Financial Credit Union1.00% 7-month CD
Connexus Credit Union1.00% 6-month CDw/active chk
Doral Direct0.91% 9-month CDaccount review
Bank5 Connect0.90% 6-month CDNot available to MA & RI residents
CapitalSource Bank0.90% ($10K) 6-month CD special
Doral Direct0.87% 6-month CDaccount review
Ally Bank0.87% 11-month No-Penalty CDsee account review

Noteworth Local Deals

HomeBanc1.35% ($50K) -month CDCentral Florida
Suntide Credit Union1.10% 6-month CDCorpus Christi, TX metro
Doral Bank NY1.00% 6-month CDNYC
BBCN Bank1.00% ($50K) MMA w/guarantee to 12/31/14Parts of CA, WA, IL, NY, NJ and VA
Capital One Bank1.00% savings acct w/1yr rate lockParts of TX, NY, NJ, MD, VA and DC

1-Year CD Rates

Pentagon Federal Credit Union1.11% (2.22% 4-year CD closed after 1 year)see review & risks
Melrose Credit Union1.10% 1-year CD
AloStar Bank of Commerce1.10% 1-year CD
Connexus Credit Union1.10% 1-year CDw/active chk
CIT Bank1.05% ($25K min)add-on & bump-up 1-year CD
DollarSavingsDirect1.05% 1-year CD
GE Capital Retail Bank1.05% ($25K min) 1-year CDFormerly MetLife
Nationwide Bank1.01% ($100K) 0.96% ($500) 1-year CD
GE Capital Bank1.00% 1-year CD
Bank5 Connect1.00% 1-year CDNot available to MA & RI residents
Barclays1.00% (2.00% 5-year CD closed after 1 year)see review & risks
Ally Bank0.93% (1.60% 5-year CD closed after 1 year w/new ewp)see review & risks

Noteworthy Local Deals

Suntide Credit Union1.50% 1-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.50% 12-month CDCorpus Christi, TX metro
University of Iowa Community Credit Union1.25% 14-month CD specialmany Iowa counties
LOMTO Federal Credit Union1.20% 1-year CDparts of New York City
Doral Bank NY1.20% 1-year CDNYC
HAB Bank1.15% 1-year CDSouthern California
Regal Financial Bank1.11% 11-month CD specialWashington State
Beal Bank1.11% 1-year CDSoutheast FL
BBCN Bank1.10% ($50K) 1-year CDParts of CA, WA, IL, NY, NJ and VA
HAB Bank1.10% 1-year CDNYC metro
General Electric Credit Union1.02% ($100K) 1-year CDCincinnati OH metro

18-month CD Rates

McGraw-Hill Federal Credit Union1.50% 15-month CD specialw/active checking with direct deposit
Pentagon Federal Credit Union1.48% (2.22% 4-year CD closed after 18 months)see review & risks
Xceed Financial Credit Union1.25% 19-month CD
Ally Bank1.16% (1.60% 5-year CD closed after 18 months w/new ewp)see review & risks
AloStar Bank of Commerce1.15% 18-month CD
GE Capital Retail Bank1.15% 15-month CD specialFormerly MetLife
GE Capital Retail Bank1.10% ($100K) 1.05% ($25K) 18-month CDFormerly MetLife
Nationwide Bank1.09% ($100K) 1.04% ($500) 18-month CD
GE Capital Bank1.05% 18-month CD
Bank5 Connect1.05% 18-month CDnot available to MA & RI residents
CapitalSource Bank1.05% ($10K) 18-month CD
Doral Direct1.02% 18-month CD, one-time penalty-free early withdrawal optionaccount review

Noteworthy Local Deals

Gulf Coast Federal Credit Union1.65% 18-month CDCorpus Christi, TX metro
NEFCU1.25% 20-month CDLong Island, NY
Doral Bank NY1.25% 18-month CDNYC

2-Year CD Rates

Pentagon Federal Credit Union1.67% (2.22% 4-year CD closed after 2 years)see review & risks
Pentagon Federal Credit Union1.52% (3.04% 7/5-year CD closed after 2 years)see review & risks
Barclays1.50% (2.00% 5-year CD closed after 2 years)see review & risks
Pentagon Federal Credit Union1.41% 2-year CD
Melrose Credit Union1.36% 2-year CD
Ally Bank1.27% (1.60% 5-year CD closed after 2 years w/new ewp)see review & risks
Connexus Credit Union1.30% 2-year CDw/active chk
AloStar Bank of Commerce1.25% 2-year CD
Bank5 Connect1.25% add-on 2-year CDnot available to MA & RI residents
CIT Bank1.20% ($25K min) add-on & bump-up 2-year CD
Northwest Federal Credit Union1.15% ($100K) 1.05% ($25K) 2-year CD+0.25% w/relationship

Noteworthy Local Deals

Suntide Credit Union1.90% 2-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.85% 2-year CDCorpus Christi, TX metro
NavyArmy Community Credit Union1.70% ($100K) 1.40% ($1K) 2-year CDCorpus Christi, TX metro
Doral Bank NY1.45% 2-year CDNYC
LOMTO Federal Credit Union1.45% 2-year CDparts of New York City
BrightStar Credit Union1.25% 23-month CD (+0.25% w/chk relationship)parts of Southeast FL

3-Year CD Rates

Wilshire State Bank2.28% 3-year installment savings account w/auto xfers, $100K maxaccount review
Pentagon Federal Credit Union2.03% (3.04% 7/5-year CD closed after 3 years)see review & risks
Pentagon Federal Credit Union2.02% 3-year CD
Connexus Credit Union1.75% 3-year CD w/active chk
Barclays1.67% (2.00% 5-year CD closed after 3 years)see review & risks
Melrose Credit Union1.61% 3-year CD
Intervest National Bank1.45% 3-year CD
Andrews Federal Credit Union1.41% 3-year CD
CIT Bank1.40% ($100K) 1.27% ($1K) 3-year CD
Ally Bank1.38% (1.60% 5-year CD closed after 3 years w/new ewp)see review & risks
Northwest Federal Credit Union1.30% ($100K) 1.20% ($25K) 3-year CD+0.25% w/relationship
Bank5 Connect1.18% (average apy) limited no-penalty 3-year CDnot available to MA & RI residents

Noteworthy Local Deals

NavyArmy Community Credit Union2.05% ($100K) 1.75% ($1K) 3-year CDCorpus Christi, TX metro
Spokane Teachers Credit Union (STCU)2.02% ($25K) 30-month CDWA State & parts of ID
Gulf Coast Federal Credit Union2.02% 3-year CDCorpus Christi, TX metro
LOMTO Federal Credit Union1.60% 3-year CDparts of New York City
Doral Bank NY1.60% 3-year CDNYC
Department of Commerce FCU1.55% 3-year CDWashington DC

4-Year CD Rates

Pentagon Federal Credit Union2.28% (3.04% 7/5-year CD closed after 4 years)see review & risks
Pentagon Federal Credit Union2.22% 4-year CD
Melrose Credit Union1.86% 4-year CD
Barclays1.75% (2.00% 5-year CD closed after 4 years)see review & risks
CIT Bank1.75% ($100K) 1.65% ($1K) 4-year CD
Nationwide Bank1.72% ($100K) 1.67% ($500) 4-year CD
Andrews Federal Credit Union1.71% 4-year CD
GE Capital Retail Bank1.70% ($100K) 1.50% ($2K) 4-year CDFormerly MetLife
Communitywide Federal Credit Union1.70% 4-year CDaccount review
GE Capital Bank1.51% 4-year CD
Barclays1.65% 4-year CD
Intervest National Bank1.65% 4-year CD
EverBank1.59% 4-year CD
Alliant Credit Union1.55% 4-year CD
Ally Bank1.43% (1.60% 5-year CD closed after 4 years w/new ewp)see review & risks
Ally Bank1.30% Raise-Your-Rate 4-year CD

Noteworthy Local Deals

Bank of Utica2.25% 4-year CDCentral New York
Bayer Heritage Federal Credit Union2.15% 4-year CDparts of WV, OH & SC
HarborOne Bank2.00% 4-year CDNew England
Institution For Savings2.00% 4-year CDparts of MA
Department of Commerce FCU1.80% 4-year CDWashington DC
MidFirst Direct1.75% 4-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
LOMTO Federal Credit Union1.75% 4-year CDparts of New York City
Police and Fire Federal Credit Union1.75% 4-year CDPennsylvania
HAPO Community Credit Union1.70% 4-year CDall of Washington State
Doral Bank NY1.65% 4-year CDNYC
Fifth Third Bank1.50% 4-year CD specialseveral eastern and midwestern states

5-Year CD Rates

Pentagon Federal Credit Union3.04% 5-year CD
Pentagon Federal Credit Union2.43% (3.04% 7-year CD closed after 5 years)see review & risks
Stanford Federal Credit Union2.27% ($100K) 5-year CD, requires chk w/ddaccount review
EverBank2.16% 5-year CD
iGObanking.com2.15% 5-year CD
Melrose Credit Union2.12% 5-year CD
American Heritage Federal Credit Union2.10% 5-year online CD
CIT Bank2.05% ($100K) 1.85% ($1K) 5-year CD
GE Capital Retail Bank2.05% ($100K) 2.00% ($25K) 5-year CDFormerly MetLife
State Bank of India - New York2.05% 5-year CD
GE Capital Bank2.01% 5-year CD
Fidelity New Issue Brokered CD2.00% 5-year non-callable CDissued by BMW Bank
Barclays2.00% 5-year CD
Salem Five Direct2.00% ($10K) 5-year CD
Connexus Credit Union2.00% 5-year CD w/active chk
Communitywide Federal Credit Union2.00% 5-year CDaccount review
Nationwide Bank1.95% ($100K) 1.90% ($500) 5-year CD
Intervest National Bank1.95% 5-year CD
Andrews Federal Credit Union1.91% 5-year CD
State Farm Bank1.90% 5-year CD
Ally Bank1.60% 5-year CD

Noteworthy Local Deals

Credit Union West3.20% (IRA $50K) 2.95% (non-IRA $50K) 5-year CDPhoenix metro
Bank of Utica2.50% 5-year CDCentral New York
American Airlines Credit Union2.47% 5-yr/1.46% 2.5-yr CD ladderlimited membership
Bayer Heritage Federal Credit Union2.40% 5-year CDparts of WV, OH & SC
Progressive Credit Union2.32% 5-year CD (NYC with unique FOM)account review
MidFirst Direct2.25% 5-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
BBVA Compass2.25% (w/relationship checking) 2.00% (w/o relation) 5-year CDparts of AL, AZ, CA, CO, FL, NM and TX
Department of Commerce FCU2.10% 5-year CDWashington DC
General Electric Credit Union2.03% 5-year CDCincinnati OH metro
Institution For Savings2.00% 5-year CDparts of MA
LOMTO Federal Credit Union2.00% 5-year CDparts of New York City
Police and Fire Federal Credit Union2.00% 5-year CDPennsylvania
Wright-Patt Credit Union1.95% ($100K) 1.85% ($500) 5-year CDUS gov military and civilian personnel, Parts of OH

Over 5-Year CD Rates

Fidelity New Issue Brokered CD3.30% 10-year non-callable CDissued by CIT Bank
Pentagon Federal Credit Union3.04% 7-year CD
Fidelity New Issue Brokered CD2.60% 7-year non-callable CDissued by GE Capital Retail Bank
Apple Federal Credit Union2.50% 10-year CD
Apple Federal Credit Union2.10% 7-year CD
Intervest National Bank2.07% ($95K) 2.05% ($2.5K) 10-year CD
GE Capital Bank2.05% 6-year CD
Northrop Grumman FCU1.93% ($40K) 1.77% ($2.5K) 7-year CD
Discover Bank1.90% 10-year CD
Discover Bank1.80% 7-year CD
Third Federal1.75% 6-year CD

Noteworthy Local Deals

Hutchinson Credit Union3.15% ($250K) 3.10% ($100K) 3.05% ($25K) 10-year CDKansas
PeoplesChoice Credit Union3.04% 10-year CDYork and Cumberland Counties of Maine
Frick Tri-County Federal Credit Union3.00% 10-year CDparts of Western PA
SACU2.80% ($90K) 2.75% ($10K) 10-year CDSan Antonio, TX
Dollar Bank2.75% 10-year CDPittsburgh and Cleveland
MidFirst Direct2.75% 7-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Franklin Federal Savings Bank2.73% 7-year CDRichmond, VA metro
Frick Tri-County Federal Credit Union2.50% 8-year CDparts of Western PA
MidFirst Bank2.70% 7-year CDAZ and OK
Hutchinson Credit Union2.50% ($250K) 2.40% ($100K) 2.30% ($25K) 6-year CDKansas
Wright-Patt Credit Union2.45% ($100K) 2.35% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
Franklin Federal Savings Bank2.42% 6-year CDRichmond, VA metro
SACU2.30% ($100K) 2.25% ($10K) 7-yearSan Antonio, TX
Security Service Federal Credit Union2.20% ($100K) 2.05% ($500) 7-year CDparts of Texas, lower rates in CO and UT
Columbia Bank2.15% 7-year CDNew Jersey
Gateway Metro Federal Credit Union2.05% 6-year CDSt. Louis metro
Columbia Bank2.00% 6-year CDNew Jersey
Randolph-Brooks Federal Credit Union1.97% 7-year CDSan Antonio & Austin, TX

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

Related Pages: CD rates
Shorebreak   |     |   Comment #1
Bill Gross, the managing director of PIMCO, the giant bond fund company, predicted during a CNBC interview this month that rates would remain at rock-bottom "until at least well into 2016."
Anonymous   |     |   Comment #2
And, yet the stock market soars. Why?
Anonymous   |     |   Comment #3
See comment #1 above.
Anonymous   |     |   Comment #4
What if the economy is getting better and the market going up now is a prediction of that? That is why you always need to have something in the market, even if it's only 10% of your holdings.......it's called diversification.
Anonymous   |     |   Comment #5
I'm sure Bill Gross is a very smart guy but why should I believe he knows exactly what is going to happen....he has been wrong many times in the last couple of years.
Anonymous   |     |   Comment #6
Could be.  But you probably have been wrong before, too.  So why do I even read your posts. 
Anonymous   |     |   Comment #8
I have been wrong in the past, who hasn't. 
So don't read my posts, if you invest by reading some stranger's post you better stick to money markets.
Anonymous   |     |   Comment #7
The rates on the treasury must stay low for long time, otherwise our taxes will double to pay the national debt that will go up as the rates go up.
There must be an upper ceiling on the rates where the payments to the foreigners will by pass the tax collected and we have come at a point of no return, which means bankrupt nation and no SS checks and worthless money.
Anonymous   |     |   Comment #9
End of the world theory, huh? Let me know when it happens so I don't miss anything.
Anonymous   |     |   Comment #10
Reading comprehension problem? 
No, not the "End of the world theory", but the beginning of the end of the U.S. financial system.
Anonymous   |     |   Comment #11
same thing
Anonymous   |     |   Comment #12
Shorebreak, Obama intends to cut all war war vets pensions in the next session of congress and I believe you still stand by the democrats no matter what.
RickNP   |     |   Comment #13
Military pensions were cut by 1% in the budget just passed. The deal came from a Congressional committee chaired by Patty Murray (D) and Paul Ryan (R). Yet, you say that it is Obama who intends to cut military pensions. How do you arrive at this conclusion?
Anonymous   |     |   Comment #14
He doesn't like Obama?
Anonymous   |     |   Comment #15
But he likes the democrats, he will give his life for them, Obama is a just a by product of the democrats. They made him dictator who can change the law just by making a presidential decree and by passing the congress.
Anonymous   |     |   Comment #16
Who is he?
Anonymous   |     |   Comment #17
#13, that was just atrial run to see the reactions when 10% cut is coming to military personnel.
Anonymous   |     |   Comment #18
Was this a 1% cut in the pension OR was it a 1% cut in COLA?
Anonymous   |     |   Comment #19
They all vote first if they want to see what's in it.