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Banking 101: Why You Need an Emergency Fund and How to Build ItThis Year’s CD Deals We Can Be Thankful For
I want to wish everyone a Happy Thanksgiving. May you enjoy the feast and the company of your family and friends. Thanks for all of your support this year.
It’s sort of my blog tradition for Thanksgiving to look back at some of the bank deals this year that we can be thankful for.
First, we can be thankful for another year of rising interest rates. The Fed has now raised the federal funds rate eight times, and it looks very likely we’ll see a ninth rate hike in December. We now have internet banks offering non-promotional savings account rates as high as 2.35% APY. Last year at Thanksgiving, the highest APY was only 1.55%.
Just like previous years, the best CD deals this year have come from credit unions. First, let’s start with the ones that are still active as of 11/22/2018.
Andrews Federal Credit Union has been offering an exceptional 9-month CD since July. With a rate of 2.75% APY, it’s still the rate leader for nationally available CDs with terms under one year and with similar minimum deposit requirements. On Black Friday, an even better CD special is scheduled to be available at Andrews Federal. As I described yesterday, this Black Friday special will have an 8-month term and a 2.86% APY.
For a larger minimum deposit ($50k), Advancial Credit Union, has some exceptional short-term CD rates. These CD terms include a 6-month (2.78% APY), 12-month (3.01% APY) and an 18-month (3.15% APY). This is another easy-membership-requirement credit union as described in my CD and credit union review.
We are finally starting to see a few 4% CDs, but the nationally available ones are still not lasting long. One that is still available is the 5-year CD at Connexus Credit Union. It has a 4.00% APY with a $5k minimum deposit. The early withdrawal penalty is 365 days of interest. Please see my CD and credit union review for more details.
Occasionally, a credit union will offer an unbelievable CD rate special, but there’s typically a catch. That catch is a relatively small maximum deposit. Great Lakes Credit Union is currently offering this type of CD special. It’s a 7-month term CD with a 7.00% APY. Maximum deposit is $7k. Please refer to my deal and credit union review for more details.
Now let’s review the 2018 hot deals that have ended.
Not all CD specials with an exceptional rate have small maximum deposits. One example this year was the 7-month CD special at Keesler Federal Credit Union. This had the exceptional rate of 5.00% APY with no stated maximum deposit. These hot deals never last long. This one ended just a few days after I reviewed the deal.
It wasn’t as exceptional as the Keesler deal, but the 15-month CD special at NASA Federal Credit Union was still pretty hot when it was offered in September. The 15-month CD special had a 3.25% APY which would still be a rate leading CD if it were offered today. The special lasted a month, ending on October 1st.
One of the first 4% CDs that we saw this year was the 64-month CD special at Sharonview Federal Credit Union. This special had a 4.00% APY with a maximum deposit of $250k with new money. The special began on March 1st and ended on March 9th, only about a week after my CD and credit union review.
Sometimes a credit union will offer exceptional rates on only IRA CDs. That was a case this year at Achieva Credit Union with its 5-year IRA CDs that had APYs that ranged from 4.00% ($500 minimum) to 4.20% ($75k minimum). This deal lasted for a few months during the summer and early fall, ending on October 1st.
We have been seeing more 4% CDs in the last month. One that came and went quickly was the 4-year CD special at Garden Savings Federal Credit Union. This had a 4.08% APY with no stated balance cap and an early withdrawal penalty of only 180 days of interest. This special CD lasted just for a few days early this month.
Lastly, we shouldn’t forget the Ally Payback Promotion which will allow customers to earn up to an additional $1,000 on top of Ally Bank’s standard interest rates. The promotion details weren’t the easiest to understand, but it did allow for existing customers to participate. I was worried that Ally Bank may let its accounts become uncompetitive during the promotion, but they have continued to raise rates. The latest rate hike was a 5-bps rate increase on the 11-month No Penalty CD which now has rates up to 2.25% APY for $25k+ deposits.
With rates continuing to be on the rise, hopefully we’ll soon see more 4% CDs, and hopefully, we’ll see them at both internet banks and credit unions in which anyone can join. I’m thankful that more credit unions have expanded their fields of membership. You can see these in our big list of credit unions anyone can join.
What deposit account deals were you thankful for this year?
And have a great Turkey day!
For the work you do to help DA save safely, Would save you a place at our family table as "Uncle Ken"
POSTED ON THURSDAY, AUGUST 19, 2010 BY Ken Tumin
https://www.depositaccounts.com/banks/pentagon-fcu/offers/#p14751
A 10 year Capital One Direct CD issued in 12/2008 at 5.7% APY. Unfortunately it reaches maturity next month.
This one may be hard to top.
Those IBonds offered back in March of 2001 with a fixed rate of 3.4%. As of today, those bonds are currently earning a compiled rate of 5.66%!
You mentioned in your writeup the ongoing Connexus "four for five" deal. After doing Garden I very nearly went in; was really close. Then I read the Connexus comments here from earlier this year. After that, I still have my money and Connexus does not have my money. Financial institutions need to learn that it is OUR money, at the very least it is our money upon maturity of the CD for goodness sake!
Comments here raised the possibility Connexus might be unaware of this. And if there is one thing, above all, I need upon maturity of my certificate it is prompt availability of MY money. This with no doubts, hassles, arguments, or hesitations whatsoever. Period. Full stop.
So while the Connexus deal might appear superficially juicy at 4%, like the juice from an undercooked turkey the Connexus juice might contain undesired pathogens. Perhaps this in part explains why the deal has survived while other 4% CD deals disappear so quickly.
I spoke with a Connexus rep and brought this up. The guy was nice as could be. But he was totally unaware of DA.com, no less the reports here. He also was not even in Wisconsin!! It appears to me Connexus is a credit union with visions of grandeur. The leaders, to my way of thinking, envision a far flung financial empire with them at the center of importance. But they are out of touch with their members and out of touch with things being written about them, the way they do business, and the way members are treated.
You know, it's weird. I'm confident Garden is a much smaller, far less sophisticated operation. Yet when speaking with the people at Garden I sensed a member focus, a realization that we (members) are of primary importance to Garden's success. It was just the opposite at Connexus. It's difficult properly to explain this. I'm totally comfortable with my money on deposit at Garden. I was not at all comfortable with Connexus, a CU too detached from reality in my view, detached to the point of being able to consider withholding a member's funds when his CD matured.
I check in here several times a day to keep up with the deals
I'm stuck earning those terrible rates until 7/21 and 7/22.
Plenty of anxiety over that.
Nothing over 15 months since those two nightmares,
And how was I supposed to know rates would increase so fast and so far?
Hope you have a great Thanksgiving!
I think your list may be the new kids on the block that replaces the old time use to be three favorites of mine, Penfed, USAA, and Navy Federal Credit Union. This appropriate time to raise rates to comparable levels just is not happening with those three anymore.
Pretty good drop in the 10 year note from the highs this month.