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Survey of the Best CD Rates for August 11, 2014


Survey of the Best CD Rates for August 11, 2014

Treasury yields can give hints about where CD rates are headed, and if that’s the case, we may see more CD rate cuts in the future. Treasury yields went down last week with the yield on the 10-year Treasury note nearing a low for the year. This year was suppose to be the year of rising Treasury yields. This Forbes article describes how the falling Treasury yields have surprised the experts, and why falling yields may continue:

How could Wall Street economists have been so wrong? On January 1st the consensus forecast of the 66 most senior economists for the year end 10-year US Treasury yield was 3.44%. At the time, 10 year Treasury yields were hovering around 3%, their highest level in almost three years. Since then the benchmark interest rate has declined as low at 2.34% last week

It’s yet another example of the unpredictability of interest rates.

Just like last week, there were a few CD rate hikes at two internet banks. The first is State Farm Bank. This might seem like a regular bank since State Farm insurance agents can help you open accounts, but it’s essentially an internet bank. Once your account is opened, the account must be managed online or by phone. State Farm Bank increased its long-term CD rates to competitive levels: 3-year (1.45% APY), 4-year (1.75% APY), and 5-year (2.15% APY). These are also available in IRAs.

The other internet bank with rate hikes is EverBank. It increased two of its long-term CD rates to competitive levels: 1.46% APY for the 3-year term and 1.85% APY for the 4-year term. Its 5-year CD APY remains at 2.30% which is a top rate for nationally available 5-year CDs. It’s tied with Synchrony Bank and CIT Bank. One advantage that EverBank has is that its CDs require a minimum deposit of only $1,500. To get 2.30% APY requires $100K at CIT Bank and $25K at Synchrony Bank. One downside with EverBank is a harsh early withdrawal penalty. It’s one-fourth of the total interest that would have been earned on the principal balance of the account if funds had not been withdrawn prior to the maturity date. This equals 15 months of interest on a 5-year CD. When taking into account early withdrawal penalties, Synchrony Bank has the best deal if you can deposit a minimum of $25,000. In that case you get 2.30% APY for the 5-year CD and an early withdrawal penalty of only 180 days of interest. You can see how these three 5-year CDs compare when closed early in our CD early withdrawal penalty calculator.

In addition to these two internet banks, two other institutions began offering very competitive CD rates that are nationally available. The first is the large credit union Mountain America. It increased its 5-year CD yield by 20 basis points to 2.20% APY. The other institution is Triumph Savings Bank which has branches in the Dallas area. It has two competitive short-term CDs: an 18-month CD with a 1.25% APY and a 12-month CD with a 1.10% APY.

Not all was good news for savers. Third Federal reduced the rates of its CD specials, but they’re still competitive so they remain in the survey. The 29-month and 49-month CD yields fell 10 basis points to 1.25% APY and 1.75% APY respectively.

The best long-term CD deal continues to be the 3.04% APY 7-year add-on CD at Tobyhanna Federal Credit Union. Many readers have shared their experiences and opinions on this CD in the comments of my Tobyhanna CD review post. One note about these types of deals at small credit unions is that there’s always a risk that the CD features may not hold up through the entire term. I did this post a couple of weeks ago on what happened at another credit union.

An alternative to short-term CDs is long-term CDs that have mild early withdrawal penalties. Two banks with top 5-year CD rates and a mild early withdrawal penalty are Synchrony Bank and Barclays. Both have very competitive 5-year CDs with an early withdrawal penalty of only 6 months of interest. I included the effective yields of these CDs when closed early in the tables below. 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 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.

Yields Accurate as of August 11, 2014

Under 1-Year CD Rates

EverBank1.40% checking/MMA intro 6-month rate ($100K/$50K max)account review
Americas Credit Union1.00% 5-month CDw/relationship
Connexus Credit Union1.00% 6-month CDw/active chk
Charter Oak Credit Union1.00% 8-month GO CD Special ($75K max)Connecticut
Doral Direct0.91% 9-month CDaccount review
Quorum Federal Credit Union0.90% 9-month CD
Ally Bank0.87% 11-month No-Penalty CDsee account review

Noteworthy Local Deals - Under 1-Year CDs

Libertad Bank1.31% MMA with rate guaranteed to 12/31/14Texas
Security First Credit Union1.16% 9-month CD SpecialTexas
Flagstar Bank1.15% savings account w/12-mo rate guaranteeMichigan
WaterStone Bank, SSB1.00% ($5K min) 11-month CDWisconsin
Gulf Coast Federal Credit Union1.00% 6-month CDCorpus Christi, TX metro
NavyArmy Community Credit Union0.95% ($100K) 0.85% ($1K) 6-month CDCorpus Christi, TX metro
Doral Bank NY0.80% 6-month CDNYC

1-Year CD Rates

Melrose Credit Union1.15% 1-year CD
Synchrony Bank1.15% (2.30% 5-year CD closed after 1 year)see review & risks
Colorado Federal Savings Bank1.10% 1-year CD
East River Bank1.10% 14-month Fixed Rate CD Special
Synchrony Bank1.10% ($25K min) 1-year CDFormerly MetLife
Triumph Savings Bank, SSB1.10% ($1K min) 1-year CD
Connexus Credit Union1.10% 1-year CDw/active chk
Silvergate Bank1.08% ($25K min) 1-year CDOpen and fund online
CIT Bank1.05% ($25K min) 1-year CDadd-on & bump-up 1-year CD

Noteworthy Local Deals - 1-Year CDs

CFG Community Bank1.35% 1-year CD relationshipMD
Gulf Coast Federal Credit Union1.30% 12-month CDCorpus Christi, TX metro
Idaho Central Credit Union1.25% 13-month CD PromoIdaho
Icon Credit Union1.25% 1-year special CDparts of ID and OR
LOMTO Federal Credit Union1.25% 1-year CDparts of New York City
Central State Bank1.25% ($5K min) 1-year CD SpecialIowa
Belmont Savings Bank (OH)1.21% 1 year CDOhio
Nuvo Bank & Trust Company1.21% ($250K max) 13-month CD Massachusetts
NavyArmy Community Credit Union1.20% ($100K) 1.00% ($1K) 1-year CDCorpus Christi, TX metro
Doral Bank Florida1.13% 13-month CDFlorida
Cooper State Bank1.10% 12-35 month CDOhio
South Florida Federal Credit Union1.06% 1-year CDSouth Florida

18-month CD Rates

Synchrony Bank1.53% (2.30% 5-year CD closed after 18 months)see review & risks
Xceed Financial Credit Union1.50% 17-month CD
Barclays1.50% (2.25% 5-year CD closed after 18 months)see review & risks
Darien Rowayton Bank1.50% 17-month CD
Triumph Savings Bank, SSB1.25% ($1K min) 1-year CD
NASA Federal Credit Union1.25% 15-month CD special
BBVA Compass1.25% (w/relationship checking) 1.15% (w/o relation) 18-month CDnow nationally available
Synchrony Bank1.20% 15-month CD specialFormerly MetLife
Ally Bank1.16% (1.60% 5-year CD closed after 18 months w/new ewp)see review & risks

Noteworthy Local Deals - 18-Month CDs

Charter Oak Credit Union2.00% 17-month GO CD Special ($75K max)Connecticut
Idaho Central Credit Union1.50% 21-month CD PromoIdaho
Gulf Coast Federal Credit Union1.45% 18-month CDCorpus Christi, TX metro
Belmont Savings Bank (OH)1.31% 18-month CDSoutheast Ohio
Asian Bank1.28% 18-month CD SpecialPhiladelphia metro area
South Jersey Federal Credit Union1.26% 18-month CDparts of New Jersey
WaterStone Bank, SSB1.15% ($5K min) 19-month CDWisconsin
Doral Bank NY1.10% 18-month CDNYC

2-Year CD Rates

Synchrony Bank1.72% (2.30% 5-year CD closed after 2 years)see review & risks
Barclays1.69% (2.25% 5-year CD closed after 2 years)see review & risks
Quorum Federal Credit Union1.50% 25-month CD special
Melrose Credit Union1.41% 2-year CD
BBVA Compass1.35% (w/relationship checking) 1.25% (w/o relation) 29-month CDnow nationally available
CIT Bank1.30% ($100K min) 2-year CD
Connexus Credit Union1.30% 2-year CDw/active chk
Ally Bank1.27% (1.60% 5-year CD closed after 2 years w/new ewp)see review & risks
USAlliance Credit Union1.26% 25-month CDNew members, new money
Colorado Federal Savings Bank1.25% 2-year CDInternet Bank
Third Federal1.25% 29-month CDpromotional
EverBank1.25% 2-year CD
Salem Five Direct1.25% 2-year CD
CIT Bank1.25% ($25K min) 2-year CDadd-on & bump-up options
Bank5 Connect1.20% add-on 2-year CDnot available to MA & RI residents

Noteworthy Local Deals - 2-Year CDs

Midwestone Bank2.00% 27-month CD Bump Up Specialrelationship
University of Iowa Community Credit Union1.75% 23-month CD SpecialIowa
Gulf Coast Federal Credit Union1.55% 2-year CDCorpus Christi, TX metro
Florida Credit Union1.51% 25-month Special CDFlorida
Frankenmuth Credit Union1.51% 21-month CD SpecialMichigan
Idaho Central Credit Union1.50% 21-month CD PromoIdaho
NavyArmy Community Credit Union1.50% ($100K) 1.30% ($1K) 2-year CDCorpus Christi, TX metro
Keesler Federal Credit Union1.50% ($100K) 1.40% ($1K) 2-year CDMississippi
LOMTO Federal Credit Union1.45% 2-year CDparts of New York City
Security First Credit Union1.39% ($50K) 1.36% ($1K) 2-Year CD SpecialTexas
People's Alliance Federal Credit Union1.35% 28-month CDNYC and Miami
Idaho Central Credit Union1.31% 2-year Online CD Idaho

3-Year CD Rates

Wilshire State Bank2.28% 3-year installment savings account w/auto xfers, $100K maxaccount review
Synchrony Bank1.92% (2.30% 5-year CD closed after 3 years)see review & risks
Barclays1.88% (2.25% 5-year CD closed after 3 years)see review & risks
Connexus Credit Union1.75% 3-year CD w/active chk
USAlliance Credit Union1.71% 35-month CD
Melrose Credit Union1.66% 3-year CD
America's Credit Union1.50% 3-year CDpromotional
CIT Bank1.50% ($100K) 1.35% ($1K) 3-year CD
EverBank1.46% 3-year CD
Sallie Mae Bank1.45% 3-year CD
State Farm Bank1.45% 3-year CD
Colorado Federal Savings Bank1.40% 3-year CDInternet bank

Noteworthy Local Deals - 3-Year CDs

Gulf Coast Federal Credit Union2.02% 3-year CDCorpus Christi, TX metro
University of Iowa Community Credit Union2.00% 32-month CD SpecialIowa
NavyArmy Community Credit Union2.00% ($100K) 1.75% ($1K) 3-year CDCorpus Christi, TX metro
Frankenmuth Credit Union2.00% 37-month CD SpecialMichigan
Guardian Credit Union1.99% ($20K min $100K max) 3-year CD SpecialActive or Retired Military
Firstmark Credit Union1.85% 40-month Regular CD PromotionGreater San Antonio
Lower Valley Credit Union1.81% 3-year CD Washington State
Homebanc National Association1.75% ($10K min $75K max) 39-month CDFlorida
Keesler Federal Credit Union1.70% ($100K) 1.60% ($1K) 3-year CDMississippi
Asian Bank1.68% 30-month CD SpecialPhiladelphia metro area
Keesler Federal Credit Union1.65% ($100K) 1.55% ($1K) 3-year bump-up CDMississippi
LOMTO Federal Credit Union1.65% 3-year CDparts of New York City
Progressive Credit Union1.61% 3-year CD (NYC with unique FOM) account review
Cooper State Bank1.60% 3-year Step Up CDOhio

4-Year CD Rates

NASA Federal Credit Union2.25% 49-month CD special
Alliant Credit Union2.10% 48-60 month CD
Melrose Credit Union2.02% 4-year CD
Synchrony Bank2.01% (2.30% 5-year CD closed after 4 years)see review & risks
Barclays1.97% (2.25% 5-year CD closed after 4 years)see review & risks
CIT Bank1.95% ($100K) 1.85% ($50K) 1.80% ($1K) 4-year CD
EverBank1.85% 4-year CDpromotional
Nationwide Bank1.84% ($100K) 1.79% ($500) 4-year CD
America's Credit Union1.80% 4-year CDpromotional
VirtualBank1.79% 4-year CD
State Farm Bank1.75% 4-year CD
Third Federal1.75% 49-month
Darien Rowayton Bank1.75% 45-month CD
Synchrony Bank1.75% ($25K) 1.70% ($2K) 4-year CDFormerly MetLife
Ally Bank1.30% Raise-Your-Rate 4-year CD

Noteworthy Local Deals - 4-Year CDs

Institution for Savings2.50% ($250K) 4-year Money Market CD (also req $250K in MMA) parts of MA
Bayer Heritage Federal Credit Union2.15% 4-year CDparts of WV, OH & SC
Farmers State Bank2.11% 4-year CDNebraska
Kemba Federal Credit Union2.10% 4-year CDGreater Cincinnati
Idaho Central Credit Union2.00% 4-year CD PromoIdaho
Keesler Federal Credit Union2.00% ($100K) 1.90% ($1K) 4-year CDMississippi
LOMTO Federal Credit Union1.85% 4-year CDparts of New York City
Firelands Federal Credit Union1.75% 4-year CDparts of Ohio
MidFirst Direct1.75% 4-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Doral Bank NY1.55% 4-year CDNYC
People's Alliance Federal Credit Union1.54% 4-year CDNYC and Miami
Fifth Third Bank1.50% 44-month CD specialseveral eastern and midwestern states

5-Year CD Rates

Synchrony Bank2.30% ($25K) 2.25% ($2K) 5-year CDFormerly MetLife
CIT Bank2.30% ($100K) 2.25% ($1K) 5-year CD
EverBank2.30% 5-year CD
Melrose Credit Union2.27% 5-year CD
GE Capital Bank2.25% 5-year CD
Barclays2.25% 5-year CD
Mountain America Credit Union2.20% 5-year CD
State Farm Bank2.15% 5-year CD
Navy Federal Credit Union2.15% ($100K) 2.10% ($20K) 5-year CDlimited membership
Sallie Mae Bank2.10% 5-year CD
BBVA Compass2.10% (w/relationship checking) 2.00% (w/o relation) 5-year CDnow nationally available
Fidelity New Issue Brokered CD2.05% 5-year non-callable CDissued by Synchrony Bank
Velocity Credit Union2.02% 5-year CD
Darien Rowayton Bank2.00% 59-month CD
Nationwide Bank2.00% ($100K) 5-year CD

Noteworthy Local Deals - 5-Year CDs

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
Keesler Federal Credit Union2.30% ($100K) 2.20% ($1K) 5-year CDMississippi
Lower Valley Credit Union2.27% 5-year CD Washington State
Firelands Credit Federal Union2.25% 5-year CDparts of Ohio
Farmers State Bank2.16% 5-year CDNebraska
LOMTO Federal Credit Union2.15% 5-year CDparts of New York City

Over 5-Year CD Rates

Fidelity New Issue Brokered CD3.30% 10-year non-callable CDissued by Synchrony Bank
Tobyhanna Federal Credit Union3.04% 7-year add-on CDaccount review
Fidelity New Issue Brokered CD2.65% 7-year non-callable CDissued by Synchrony Bank
Apple Federal Credit Union2.60% 10-year CD
Navy Federal Credit Union2.55% ($100K) 2.50% ($20K) 7-year CDlimited membership
Special Custodial CD2.53% ($100K) 10-yearaccount review
Doral Direct2.30% 10-year CDaccount review
GE Capital Bank2.30% 6-year CD
Navy Federal Credit Union2.30% ($100K) 2.25% ($20K) 6-year CDlimited membership
Discover Bank2.25% 10-year CD
Franklin Federal Savings Bank2.22% 7- year CDaccount review
Apple Federal Credit Union2.20% 7-year CD
Discover Bank2.05% 7-year CD

Noteworthy Local Deals - Over 5-year CDs

Hutchinson Credit Union3.15% ($250K) 3.10% ($100K) 3.05% ($25K) 10-year CDKansas
MidFirst Direct3.00% 10-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Frick Tri-County Federal Credit Union3.00% 10-year CDparts of Western PA
MidFirst Bank2.90% 10-year CDAZ and OK
San Antonio Federal Credit Union2.90% ($90K) 2.85% ($10K) 10-year CDSan Antonio, TX
PeoplesChoice Credit Union2.78% 10-year CDYork and Cumberland Counties of Maine
MidFirst Direct2.75% 7-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Dollar Bank2.65% 10-year CDPittsburgh and Cleveland
Doral Bank NY2.50% 10-year CDNYC
Frick Tri-County Federal Credit Union2.50% 8-year CDparts of Western PA
Hutchinson Credit Union2.50% ($250K) 2.40% ($100K) 2.30% ($25K) 6-year CDKansas
San Antonio Federal Credit Union2.45% ($100K) 2.40% ($10K) 7-yearSan Antonio, TX
MidFirst Bank2.40% 7-year CDAZ and OK
Wright-Patt Credit Union2.39% ($100K) 2.29% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
Fifth Third Bank2.00% 6-year CD specialseveral eastern and midwestern states

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

Related Pages: CD rates