All good things must come to an end. That’s the case with PenFed CD rates. PenFed slashed its CD rates for March. The sizes of the cuts range from 51 basis points for the 7-year CD to 25 basis points for the 2- and 3-year CDs. For those who had PenFed CDs maturing in March, I’m afraid the special renewal rates were not extended into March.
Below is a summary of the new March 2014 CD APYs and the old February APYs:
- 1.76% 7-year CD (was 2.27%)
- 1.76% 5-year CD (was 2.02%)
- 1.51% 4-year CD (was 1.76%)
- 1.26% 3-year CD (was 1.51%)
- 0.90% 2-year CD (was 1.26%)
- 0.80% 1-year CD (was 1.16%)
If you’re looking for CDs, there are much better deals at other institutions. The best deal for long-term CDs and IRA CDs continues to be at Navy Federal Credit Union. The two best deals are the Jumbo 7-year CD with a 3.10% APY and the Jumbo 5-year CD with a 2.55% APY. The main downside with Navy Federal is that it has membership limitations. I have more details in this blog post.
If you can’t qualify for Navy Federal membership, you may want to consider an internet bank like Barclays which has a 5-year CD with a 2.15% APY. There is no minimum deposit requirement, and the early withdrawal penalty is only 180 days of interest. You can get a slightly higher rate at CIT Bank with at least a $100K deposit, but the early withdrawal penalty is 12 months of interest for the 5-year Jumbo CD.
The above rates are accurate as of 3/1/2014.