CD Rates Summary May 21, 2019

There have been a few rate hikes and new CD specials, but overall, there have been many more CD rate cuts than hikes in the last two weeks. This is a trend that we have seen for most of 2019.

Brokered CD Rates

For the top brokered CD rates at Fidelity and Vanguard, the rates of the long-term ones (3 years and longer) all went down by 5 bps from two weeks ago. For terms under 3 years, the rates were either flat or increased by 5 bps.

At both Fidelity and Vanguard, the top 1-year rate was 2.45%, and the top 5-year rate was 2.70%. There continues to be little rate difference for brokered CDs with terms under two years. From 3-months to 18-months, the top rates are either 2.40% or 2.45%.

Falling brokered CD rates is a trend that began in November of last year when the top 5-year rates reached as high as 3.60%.

One interesting thing I noticed today is the increased number of callable CDs. For a callable CD, the bank has a right to close the CD before maturity. It makes sense that we’re seeing more callable CDs these days since they are favorable to the bank when rates might fall. Please note that callable brokered CDs are excluded from the lists below. Only non-callable CDs are included.

Direct CD Rates

For nationally available CDs, there was just one institution that came out with noteworthy higher rates. There were a few local banks and credit unions that are offering noteworthy CD rates. I’ll mention a few that have wide availability.

Long-Term CD Rates

Connexus Credit Union increased the rate of its 5-year CD to 3.40% APY. Minimum deposit is $5k, and the early withdrawal penalty is 365 days of dividends. This continues to be the top 5-year rate that’s nationally available. Connexus replaces University FCU for this top spot. Last week, University FCU’s 5-year Jumbo CD APY fell from 3.40% to 3.15%.

Connexus also increased the rate of its 3-year CD to 3.10% APY. Only State Bank of India has a higher rate (3.14% APY).

One noteworthy 5-year CD that continues to be available is the 60-month Promo Jumbo CD at GTE Financial Credit Union which earns 3.30% APY for a $100k minimum deposit. What makes this especially noteworthy is that it allows unlimited add-on deposits. There’s also a non-Jumbo version with a lower rate (3.04% APY). Its minimum deposit is only $500. A couple of readers had been told that these promos were scheduled to end on April 30th, but these promos are still listed at GTE Financial’s website. The only thing that appears to have ended on the 30th was a vacation cruise give-away.

The other add-on deposit 5-year CD that’s nationally available is the 5-year Growth Certificates at Mountain America Credit Union (MACU). These used to have the name “Term Deposit Plus”. It also used to have a much higher yield, but the current yield is still very competitive at 3.10% APY. There’s only a $5 minimum initial deposit. The main downside to this add-on CD is a maximum balance of $100k (in any one or combination of Growth Certificate accounts). MACU allows members to add money to their Growth Certificates at anytime. The account also requires an automated monthly deposit of at least $10.

These add-on CDs can be a useful way to hedge against falling rates. Open these CDs with the minimum deposit. If rates fall, you can always add on to these CDs, and the additional funds will receive the original CD rate.

Two weeks ago I reported on the 4% 4-year Share Certificate at Frontwave Credit Union in California. Unfortunately, this deal didn’t last long. The rate dropped to 3.50% APY, which is still an excellent deal for a 4-year CD. Frontwave’s field of membership is primarily limited to residents of Riverside, San Bernardino, and San Diego Counties, California.

The new local deal leader for 5-year CDs is Advantis Credit Union which is open to Washington State residents and residents of several Oregon counties. For a $100k minimum with at least $25k of new money, the 5-year CD earns 3.75% APY.

We now have several 5-year CDs that are locally available with yields of 3.50%. The latest one added is the 5-year CD at Pioneer Valley Credit Union. Its 5-year CD earns 3.50% APY for a $25k minimum and 3.25% APY for a $1k minimum. Residents of Connecticut, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont are eligible to join.

Mid-Term CD Rates

Important rate cuts took place recently at CD Bank, the online division of TBK Bank. It had been offering top rates on three mid-term CDs. All of these three had big rate cuts: 12-month (-15 bps to 2.85% APY), 18-month (-20 bps to 2.90% APY), and 24-month (-25 bps to 2.95% APY). Unfortunately, CD Bank’s parent, TBK Bank, made rate cuts on its CDs that it offers in the Dallas area. TBK Bank had been offering rates even higher than CD Bank, but now the rates are the same.

We still have one remaining mid-term CD with a 4% APY. It’s the 25-month CD special at Dort Federal Credit Union. Minimum deposit is $50k. Unfortunately, it’s not widely available. Only residents of a few Michigan counties are eligible to join.

Short-Term CD Rates

Andrews Federal Credit Union continues to offer 2.86% APY on a special 8-month CD. This special has been available since November.

PurePoint Financial’s 13-month No-Penalty CD continues to earn 2.50% APY. Minimum deposit is $10k. It functions just like Ally Bank’s No Penalty CD. Since it’s a no-penalty CD, the longer the term, the better. You can make the CD have any term you want, from 7 days to its full 13-month term.

Savings & Money Market Account Rates

For liquid accounts, the top rate is 2.53% APY. The is available nationwide at Susquehanna Community Bank. Its Eagle Premium Savings Account earns 2.53% APY when a $100k minimum deposit is maintained. For those without a large balance, the money market accounts at Western State Bank and Investors eAccess both earn 2.50% APY with no minimum balance requirement. My next update on all of the top savings and money market accounts will be next week. Here's the link to last week's savings/checking account summary. You can always get the latest rates for savings/checking accounts and CDs by using our rate tables, available via the navigational menu on top.

Federal Reserve and Interest Rate Summary

This is my new weekly summary with the Fed review split off on a separate blog post. My weekly summaries will now be focused entirely on deposit rates and deals. Please keep all discussion about the Fed, the economy and politics to my Fed/Economy review blog post.

Yields Accurate as of May 21, 2019

Under 1-Year CD Rates

Noteworthy Local Deals - Under 1-Year CDs

1-Year CD Rates

Noteworthy Local Deals - 1-Year CDs

18-month CD Rates

Noteworthy Local Deals - 18-Month CDs

2-Year CD Rates

Noteworthy Local Deals - 2-Year CDs

3-Year CD Rates

Noteworthy Local Deals - 3-Year CDs

4-Year CD Rates

Noteworthy Local Deals - 4-Year CDs

5-Year CD Rates

Noteworthy Local Deals - 5-Year CDs

Over 5-Year CD Rates

Noteworthy Local Deals - Over 5-year CDs

*BoC (Bank of China), BoH (Bank of Hope), BotW (Bank of the West), BUN (BankUnited), CNTB (Centennial Bank), DIME (Dime Community Bank),GSB (GS Bank), HWB (Hancock Whitney Bank), LBS&L (Luther Burbank Savings & Loan), NYCM (New York Community Bank), RTC (Rockland Trust Company), SBoI (State Bank of India), SBoIIL (State Bank of India IL), SMB (SallieMae Bank), SSB (Southside Bank), SYN (Synchrony Bank), TBK (TBK Bank SSB), TRMB (Triumph Bank)

CDs Removed Due To Low Rates Or Expired Specials

CDs Removed, No Longer Available - Nationwide

None

CDs Removed, No Longer Available - Local

CDs Removed, Rate Too Low - National

CDs Removed, Rate Too Low - Local