CD Rates Summary June 5, 2018

POSTED ON TUESDAY, JUNE 5, 2018 BY Ken Tumin

Last week’s market volatility proved to be just a glitch for interest rates. The strong May jobs report that was released Friday helped to bring back economic optimism. In his review of the jobs report, Fed Watch economist Tim Duy summed up his view that the economy will continue to be strong for the rest of 2018 and that will push the Fed into raising rates for a total of four times in 2018:

The employment report indicates the economy retains sufficient underlying strength to justify continued Fed rate hikes. The next will come on June 13. I think a rate hike in September is almost a lock as well; the data is not likely to turn around by then. That leaves a December rate hike still arguably up in the air, but I still believe the economy will retain sufficient momentum to coax the Fed into acting for a fourth time this year and push policy deeper into the current range of neutral estimates.

We will know more next week after the Fed’s June 12-13 meeting.

If the Fed continues to hike rates, we may not see a whole lot of movement on long-term rates. In the last year, we’ve seen yield curve compression as short-term rates have risen more than long-term rates. That may continue which could eventually cause short-term rates to exceed long-term rates. An inverted yield curve has often preceded a recession, and it could cause the Fed to hold back on rate hikes. Tim Duy’s Fed Watch post from last week described a speech by Fed Governor Lael Brainard which downplayed the risks of an inverted yield curve which suggests that the Fed may not start holding back on rate hikes if yield curve inversion happens.

The odds of future Fed rate hikes (as indicated by the Fed funds futures) plunged last week after the market volatility, but that didn’t last long. The odds rebounded, but they are still below where they were two weeks ago. The odds of a rate hike next week is close to 100% at 93.8%. The odds that we’ll have at least three more rate hikes by December didn’t return to 50%, but it did rise considerably. The odds are now at 36.7%, up from 14.8% last week.

Treasury yields also rebounded from last week, but most are still below where they were two weeks ago. The 2-year and 5-year Notes had the largest rebound, with the 2-year rising 17 bps and the 5-year rising 18 bps.

Treasuries continue to be a very competitive alternative to CDs. They become even more competitive when the tax advantages of Treasuries are considered. For more discussion on the pros and cons of Treasuries Notes compared to CDs, please refer to this DA Forum thread and this DA blog article.

The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

1-month: 1.82% up from 1.77% last week (0.83% a year ago)
6-month: 2.13% up from 2.06% last week (1.06% a year ago)
1-year: 2.32% up from 2.17% last week (1.16% a year ago)
2--year: 2.49% up from 2.32% last week (1.32% a year ago)
5--year: 2.76% up from 2.58% last week (1.74% a year ago)
10-year: 2.92% up from 2.77% last week (2.18% a year ago)
30-year: 3.07% up from 2.96% last week (2.84% a year ago)

Fed funds futures' probabilities of future rate hikes by:

Jun 2018 - up by at least 25 bps: 93.8% up from 76.3% last week
Sep 2018 - up by at least 50 bps: 65.9% up from 36.6% last week
Dec 2018 - up by at least 75 bps: 36.7% up from 14.8% last week

Certificate of Deposit Rates

The above graph shows the rate trends of the average CD rates. These average rates are based on all the rate data that we have collected over the years. This is an interactive graph. You can choose the term of the CDs (from 3 months to 5 years) and the look-back period (from 3 months to 5 years). As you can see in the graph, average CD rates for all terms have increased in the last year, but the largest gains have been on the short-term CDs.

Best Nationally-Available CD Rates

This is another week with impressive Brokered CD rates. New-issue brokered CD rates at Fidelity and Vanguard are at the top or near the top for all maturities except for the 12-month term. Both Fidelity and Vanguard were listing 3% 3-year CDs, and Fidelity was listing a 3.30% 5-year CD. The brokered CD rates shown in the table below are as of 11:00am EDT today.

We keep seeing more 3% CDs with shorter terms. The latest of these CDs are from PurePoint Financial and Northern Bank Direct. PurePoint Financial increased its 36-month CD rate to 3.00% APY last week (see review), but the 3% nationally-available CD with the shortest term goes to Northern Bank Direct with its 30-month CD that earns 3.01% APY (see review).

Connexus Credit Union continues to offer the best 1-year CD rate with a 2.50% APY. It also continues to have two very competitive long-term CD rates: 42-month CD (3.00% APY) and 5-year CD (3.25% APY). Minimum deposit is $5k. Membership in Connexus Credit Union is open to virtually anyone by joining the Connexus Association (please see this blog post for more details).

For a nationally-available 12-month CD without a balance cap, Connexus Credit Union’s 12-month CD (2.50% APY) continues to be way out in front. The second highest 12-month rate is 2.35% APY. We now have four institutions offering this rate for terms at or around 12 months. These include Synchrony Bank (14-month CD special), Banesco USA (12-month CD), BankPurely (12-month CD) and iGObanking (12-month CD) Note, both BankPurely and iGObanking are divisions of Flushing Bank.

Add-On CDs

Add-On CDs may not appear useful in a rising rate environment. However, they can be very useful to hedge your bets of rising interest rates. Just open an add-on CD with the minimum deposit. If rates don’t rise as expected, you can fall back on the add-on CD.

Bank5 Connect continues to offer an add-on CD it calls the Investment CD with a 2.70% APY. It offers unlimited add-on deposits during the entire term. Bank5 Connect’s CDs are nationally available except for the states of Rhode Island and Massachusetts. Please see this blog post for more details.

Mountain America Credit Union raised its 5-year CD rate to 3.15% APY. In addition to standard CDs, it offers add-on CDs that it calls Term Deposit Plus. These Term Deposit Plus accounts have the same rates as the standard CDs. It has only two downsides. The first is that they have a maximum balance of $100k. An unlimited number of add-on deposits can be made throughout the term as long as the balance of the CD doesn’t exceed $100k. The second downside is that they require automated monthly deposits of at least $10. The minimum deposit to open is only $5. Even with $10 monthly deposits, there’s little to lose if rates do rise considerably. A $5 initial deposit plus $10 per month for 60 months equals only $605 by the end of the term. Please see this blog post for more details.

Long-Term CDs with Mild Early Withdrawal Penalties (EWP)

We now have two 3% CDs with terms under 5 years and with an EWP of only six months of interest.

Two weeks ago, I first mentioned Connexus Credit Union’s 42-month CD (3.00% APY). It has an EWP of 180 days of interest which makes the effective yields when the CD is closed before maturity to be a better deal when Connexus Credit Union’s 5-year CD (3.25% APY) which has an EWP of 365 days of interest.

PurePoint Financial’s 3-year CD (3.00% APY) has an EWP of only 181 days of interest. When closed early, this CD will offer very similar effective yields to the Connexus 42-month CD.

If you think there’s a chance that long-term rates may not rise much above 3%, you may still see value in 3% 5-year CDs. INOVA Federal Credit Union began offering a 5-year CD with a 3% APY and a maximum EWP of 180 days of interest.

Ally Bank continues to offer a 3-year CD rate of 2.50% APY for a minimum deposit of $25k. This rate is much lower than the top 3-year rates, but Ally’s 3-year CD has an EWP of only 90 days of interest. This 3-year CD is now a better deal than Ally’s 5-year CD (2.60% APY and an EWP of 150 days of interest) if the CDs are closed early.

Below is my standard explanation of the strategy of using long-term CDs with mild early withdrawal penalties and how I include these effective yields in the tables below.

An alternative to short-term CDs is long-term CDs that have mild early withdrawal penalties. I include the effective yields of a few long-term CDs when closed early in the tables below. All of these have competitive long-term CD rates and an early withdrawal penalty of 6 months of interest or less. The combination of a high long-term CD rate combined with a mild early withdrawal penalty makes these CDs pretty good deals even when closed early. 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.

Savings & Checking Account Rates

In the past, I’ve covered savings and checking account rate changes in another weekly summary post. Each week I would publish one post with a recap of savings and checking account rate changes and another post with a recap of CD rate changes. I’m now alternating these posts. 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.

Yields Accurate as of June 5, 2018

Under 1-Year CD Rates

Institution	Rates	Notes
Melrose Credit Union	2.19% 9-month Share Certificate	Easy membership
Fidelity Brokered CD	2.15% 9-month non-callable CD	Issued by BoC, SFBT*
The Vanguard Group Brokered CD	2.15% 9-month non-callable CD	Issued by BoC*
USALLIANCE Financial	2.12% 9-month Fixed Rate Certificate	Account review
Popular Direct	2.05% ($10k) 6-month Popular Direct CD	Internet bank See review
Limelight Bank	2.05% 6-month CD	Internet bank See review
CD Bank	2.05% ($10k) 9-month CD	Internet bank See review
The Vanguard Group Brokered CD	2.05% 6-month non-callable CD	Issued by LBS&L*
Fidelity Brokered CD	2.05% 6-month non-callable CD	Issued by LBS&L*
Virtual Bank	2.01% eMoney Market w/1-yr rate guarantee	See review
Ally Bank	2.00% ($25k), 1.75% ($5k) 9-month High Yield CD	Internet bank See review
TAB Bank	1.92% 9-month CD	See review
CD Bank	1.90% ($10k) 6-month CD	Internet bank See review
TAB Bank	1.87% 6-month CD	See review
Live Oak Bank	1.85% 6-month CD	Account review
My eBanc	1.85% ($5k) 6-month Time Deposit	See review
Banesco USA	1.85% 6-month CD	Account review
CIT Bank	1.85% ($1k) 11-month No-Penalty CD	internet bank See review

Noteworthy Local Deals - Under 1-Year CDs

InTouch Credit Union	2.20% 8-month CD Special	Dallas-Fort Worth, Las Vegas, metro Detroit, northern Virginia, and Memphis See review
Commerce State Bank	2.10% 9-months CD Special	Eastern Wisconsin
Apple Bank for Savings	2.00% 6-month CD Special	NYC, Long Island, Rockland and Westchester Counties
Evergreen Bank Group	2.00% ($10k) 7-month CD Special	Chicago metropolitan area See review
Bankers Trust Company	2.00% (base rate) 7-27 month Pick-A-Term CD	Iowa and Arizona See review
SECU of Maryland	2.00% 9-month CD	Employees/retirees of nearly 1,000 companies
Blackhawk Community Credit Union	1.95% ($10k) 6-month Jumbo Share Certificate	9 Wisconsin and 4 Illinois counties See review
Sunstate Bank	1.90% 7-month Promo CD	South Florida See review
Code Credit Union	1.85% ($10k) 9-month Preferred CD	7 Central Ohio counties
Federal Savings Bank	1.85% 10-month CD	New Hampshire Seacoast Region

1-Year CD Rates

Connexus Credit Union	2.50% 12-month Share Certificate	Easy membership Account review
Market USA Federal Credit Union	2.50% ($10k max) 10-month Tax Time Certificate Special	Easy membership Account review
BankPurely	2.35% 12-month PurelyCD	Internet bank See review
iGObanking	2.35% 12-month iGOCD	See review
Banesco USA	2.35% 12-month CD	See review
Synchrony Bank	2.35% 14-month CD	Internet bank See review
TAB Bank	2.33% 12-month CD	See review
AloStar Bank of Commerce	2.32% 12-month CD	Internet bank See review
AFFCU (formerly Air Force Federal Credit Union)	2.30% 1-year CD	Easy membership See review
Colorado Federal Savings Bank	2.30% 1-year CD	Internet bank Account review
Limelight Bank	2.30% 12-month CD	Internet bank See review
MidFirst Direct	2.30% 12-month High Yield Online CD	Internet bank Account review
CD Bank	2.30% ($10k) 12-month CD	Internet bank See review
INOVA Federal Credit Union	2.30% 14-month Certificate ($50k)	Easy membership Account review
The Vanguard Group Brokered CD	2.30% 1-year non-callable CD	Issued by MCBKX, SB*
Fidelity Brokered CD	2.30% 1-year non-callable CD	Issued by SFBT*
M.Y. Safra Bank	2.29% 12-month Online Promo CD	See review
USALLIANCE Financial	2.28% 12-month Fixed Rate Certificate	Account review
First Internet Bank	2.27% 12-month CD	Internet bank See review
KS StateBank	2.27% 1-year CD	See review
Virtual Bank	2.27% ($10k) 12-month eCD	See review
KS StateBank	2.27% ($100k) 1-year Jumbo CD Internet Only Special	See review
Synchrony Bank	2.25% 12-month CD	Internet bank See review
PenFed Credit Union	2.25% 12-month Money Market Certificate	Easy membershipAccount review
EverBank	2.25% 1-year Yield Pledge CD	Internet bank See review
My eBanc	2.25% ($5k) 12-month Time Deposit	See review
Ally Bank	2.25% ($25k), 2.15% ($5k) 12-month High Yield CD	Internet bank See review
State Bank of India (California)	2.22% ($10k) 13-month Promo CD	See review
TAB Bank	2.22% 12-month CD	See review
Barclays	2.20% 12-month Online CD	Account review
Live Oak Bank	2.20% 1-year CD	Internet bank Account review
Marcus by Goldman Sachs	2.20% 12-month High Yield CD
PurePoint Financial	2.20% ($10k) 12-month CD	Internet bank See review
EBSB Direct	2.20% 14-month CD Special	Internet bank See review

Noteworthy Local Deals - 1-Year CDs

Siouxland Federal Credit Union	3.32% ($50k max) 12-month Existing Member CD w/checking	4 Nebraska, 1 Iowa, and 1 South Dakota counties Account review
Siouxland Federal Credit Union	3.32% ($25k max) 12-month New Member CD w/checking	4 Nebraska, 1 Iowa, and 1 South Dakota counties Account review
KEMBA Financial Credit Union	3.00% ($10k min/$50k max) 14-month Advantage Promo CD	7 Ohio counties Account review
Argentine Federal Savings	2.65% 14-month CD Special	Kansas City metro area See review
City CU	2.60% ($99k) 12-months Jumbo CD	7 Texas counties (Dallas) See review
IC Federal Credit Union	2.59% Special 1-year CD	6 eastern Massachusetts counties See review
Horizon Credit Union	2.53% 13-month New Special Certificate	Washington State, 8 Idaho and 14 Montana counties See review
TruWest Credit Union	2.50% ($50k max) 11-month Investment Certificate	4 Arizona and 2 Texas counties See review
Poppy Bank	2.50% 12-month CD	California See review
City CU	2.50% 12-months CD	7 Texas counties (Dallas) See review
ParkeBank	2.50% 13-month CD Special	South New Jersey and Philadelphia metro area See review
P1FCU	2.35% 12-month Share Certificate	12 Idaho and 2 Washington counties See review
The MINT National Bank	2.30% 13-month Promotional CD	Houston metro area See review
Northfield Bank	2.25% 11-month Online CD	New Jersey and New York See review
Investors Community Bank	2.25% 1-year Certificate	6 northeast Wisconsin counties See review
Centreville Bank	2.25% 1-year CD	Rhode Island See review
Brookline Bank	2.25% 13-month CD Special	Greater Boston metro area See review
Evergreen Bank Group	2.25% ($10k) 13-month CD Special	Chicago metropolitan area See review
Mercantil Commercebank	2.20% 12-month Online CD	Florida and Texas See review
Blackhawk Community Credit Union	2.20% ($10k) 12-month Jumbo Share Certificate	9 Wisconsin and 4 Illinois counties See review
East Boston Savings Bank	2.20% 14-month CD Special	Massachusetts See review

18-month CD Rates

MutualOne Bank	2.58% 19-month CD	See review
The Vanguard Group Brokered CD	2.55% 18-month non-callable CD	Issued by UBS, WFB*
Fidelity Brokered CD	2.55% 18-month non-callable CD	Issued by PINB, UBS, WFB*
Greenwood Credit Union	2.50% 15-month CD	EMR See review
Banesco USA	2.50% 18-month CD	Account review
PurePoint Financial	2.50% ($10k) 18-month CD	Internet bank See review
MidFirst Direct	2.45% 15-month High Yield Online CD Special	Internet bank Account review
TAB Bank	2.43% 18-month CD	See review
Colorado Federal Savings Bank	2.40% 18-month CD	Internet bank Account review
MidFirst Direct	2.40% 18-month High Yield Online CD	Internet bank Account review
McGraw-Hill Federal Credit Union	2.40% 20-month Promo CD	Account review
First Internet Bank	2.38% 18-month CD	Internet bank See review
Limelight Bank	2.36% 18-month CD	Internet bank See review
My eBanc	2.36% ($5k) 18-month Time Deposit	See review
EverBank	2.35% 1.5-year Yield Pledge CD	Internet bank See review
Synchrony Bank	2.35% 18-month CD	Internet bank See review
Live Oak Bank	2.35% 18-month CD	Account review
Popular Direct	2.35% ($10k) 18-month Popular Direct CD	Internet bank
CD Bank	2.35% ($10k) 18-month CD	Internet bank See review
TAB Bank	2.33% 18-month CD	See review
USALLIANCE Financial	2.33% 18-month Fixed Rate Certificate	Account review
Capital One	2.30% 18-month 360 CD	Internet bankAccount review
Ally Bank	2.30% ($25k), 2.20% ($5k) 18-month High Yield CD	Internet bank See review
Veridian Credit Union	2.28% 18-month Jumbo CD ($100k)	Easy membership See review
Marcus by Goldman Sachs	2.25% 18-month High Yield CD
Navy Federal Credit Union	2.25% 18-month CD	Military relationship See review
Barclays	2.25% 18-month Online CD	Account review
McGraw-Hill Federal Credit Union	2.25% 18-month Promo CD	Account review
Ally Bank	2.10% (2.50% High Yield 3-Year CD closed after 18 months)	See review
PurePoint Financial	2.03% (3.00% ($10k) 36-month CD closed after 18 months)	Internet bank See review
INOVA Federal Credit Union	2.02% (3.00% 5-year Certificate closed after 18 months)	Easy membership Account review
Connexus Credit Union	2.02% (42-month Share Certificate closed after 18 months)	Easy membership Account review

Noteworthy Local Deals - 18-Month CDs

Direct Federal Credit Union	2.55% ($100k) 21-month Jumbo CD	Norfolk County, Massachusetts See review
Brookline Bank	2.50% 18-month CD Special	Greater Boston metro area See review
City CU	2.50% 18-months CD	7 Texas counties (Dallas) See review
Rockland Federal Credit Union	2.50% 20-month Share Certificate	6 Massachusetts counties Account review
Institution for Savings	2.50% 20-month CD	Massachusetts' North Shore See review
Direct Federal Credit Union	2.50% 21-month CD	Norfolk County, Massachusetts See review
University of Iowa Community Credit Union	2.40%($100k), 2.30% ($1k) 18-month CD Special	All of Iowa and 4 Illinois counties, University of Iowa relationship See review
HarborOne Bank	2.30% 20-month CD Special	CT, ME, MA, NH, RI, and VT See review
Metro Credit Union	2.25% 18-month CD Special	8 eastern Massachusetts counties See review

2-Year CD Rates

Greenwood Credit Union	2.80% 24-month CD	EMR See review
The Vanguard Group Brokered CD	2.80% 2-year non-callable CD	Issued by MSB, UBS, WFB*
Fidelity Brokered CD	2.80% 2-year non-callable CD	Issued by UBS, WFB*
BankPurely	2.75% 24-month PurelyCD	Internet bank See review
iGObanking	2.75% 24-month iGOCD	See review
PurePoint Financial	2.75% ($10k) 24-month CD	Internet bank See review
Bank5 Connect	2.70% 24-month Investment CD	Additional unlimited deposits permitted Account review
KS StateBank	2.65% 2-year CD	See review
Banesco USA	2.65% 24-month CD	See review
Popular Direct	2.65% ($10k) 2-year Popular Direct CD	Internet bank See review
Veridian Credit Union	2.65% ($100k) 24-month Jumbo CD Special	See review
KS StateBank	2.65% ($100k) 2-year Jumbo CD Internet Only Special	See review
Connexus Credit Union	2.60% 24-month Share Certificate	Easy membership Account review
M.Y. Safra Bank	2.56% ($5k) 24-month Online Promo CD	See review
Air Force Federal Credit Union	2.55% 2-year CD	Easy membership See review
MidFirst Direct	2.55% 24-month High Yield Online CD	Internet bank Account review
Veridian Credit Union	2.55% 24-month CD Special	See review
Virtual Bank	2.55% ($10k) 24-month eCD	See review
NASB	2.53% ($10k), 2.48% ($2.5k) 24-month eCD	Account review
Colorado Federal Savings Bank	2.51% 2-year CD	Internet bank Account review
MainStreet Bank	2.50% 2-year CD	See review
My eBanc	2.50% ($5k) 24-month Time Deposit	See review
CD Bank	2.50% ($10k) 24-month CD	Internet bank See review
Kinecta Federal Credit Union	2.50% 24-month ($100k) Jumbo Share Certificate	Easy membership Account review
USALLIANCE Financial	2.50% 25-month Fixed Rate Certificate	Account review
Ally Bank	2.35% 2-Year Raise Your Rate CD	See review
PurePoint Financial	2.28% (3.00% ($10k) 36-month CD closed after 2 years)	Internet bank See review
INOVA Federal Credit Union	2.27% (3.00% 5-year Certificate closed after 2 years)	Easy membership Account review
Connexus Credit Union	2.27% (42-month Share Certificate closed after 2 years)	Easy membership Account review
Ally Bank	2.20% (2.50% High Yield 3-Year CD closed after 24 months)	See review

Noteworthy Local Deals - 2-Year CDs

Horizon Credit Union	3.04% (w/checking) 26-month New Deposit Special Certificate	Washington State, 8 Idaho and 14 Montana counties See review
Pawtucket Credit Union	3.00% 25-month CD Special	Rhode Island and portions of Massachussets and Connecticut Account review
Via Credit Union	2.79% ($25k) 27-month CD Special	12 Indiana central counties See review
Horizon Credit Union	2.78% (w/o checking) 26-month New Deposit Special Certificate	Washington State, 8 Idaho and 14 Montana counties See review
Red River Credit Union	2.77% 24-month Summer Anniversary CD	13 Texas, 11 Arkansas, and three Mississippi counties; Caddo Parish, Louisiana See review
Kohler Credit Union	2.75% ($10k) 23-month Share Certificate w/checking	8 Southeast Wisconsin counties See review
City CU	2.75% 24-months CD	7 Texas counties (Dallas) See review
Evergreen Bank Group	2.70% ($10k) 29-month CD Special	Chicago metropolitan area See review
InTouch Credit Union	2.65% ($95k) 21-month Jumbo Certificate	Dallas-Fort Worth, Las Vegas, metro Detroit, northern Virginia, and Memphis See review
Brookline Bank	2.60% 24-month CD Special	Greater Boston metro area See review
Commerce State Bank	2.55% 22-months CD Special	Eastern Wisconsin
Evergreen Bank Group	2.55% ($10k) 23-month CD Special	Chicago metropolitan area See review
First Nations Bank	2.55% ($10k) 24-month CD Special	Chicago metropolitan area See review
First Republic Bank	2.50% ($10k) 23-month CD Special	CA, CT, FL, MA, NY, OR See review
Melrose Bank	2.50% 2-year eCD	CT, ME, MA, NH, RI, and VT See review
PurePoint Financial	2.50% ($10k) 24-month CD	Florida, Illinois, New York, Texas See review
BMI Federal Credit Union	2.50% 25-month CD	8 Central Ohio counties Account review
GenoaBank	2.50% ($100k max) 27-month CD Special	Toledo, Ohio metro area

3-Year CD Rates

Northern Bank Direct	3.01% 30-month CD	Internet bank See review
PurePoint Financial	3.00% ($10k) 36-month CD	Internet bank See review
The Vanguard Group Brokered CD	3.00% 3-year non-callable CD	Issued by AMEX NB, CCB, CTBC, DIS, GSB, UBS, WFB*
Fidelity Brokered CD	3.00% 3-year non-callable CD	Issued by AMEX NB, CCB, DIS, GSB, SMB, UBS, WFB*
Bank5 Connect	2.90% 36-month CD	Internet bank Account review
KS StateBank	2.85% 3-year CD	See review
Veridian Credit Union	2.85% ($100k) 36-month Jumbo CD Special	Easy membershipSee review
KS StateBank	2.85% ($100k) 3-year Jumbo CD Internet Only Special	See review
Connexus Credit Union	2.75% 36-month Share Certificate	Easy membership Account review
Veridian Credit Union	2.75% 36-month CD Special	Easy membership See review
Union Bank	2.75% ($10k) 36-47 month CD	Account review
USALLIANCE Financial	2.74% 36-month Fixed Rate Certificate	Account review
MainStreet Bank	2.70% 3-year CD	See review
Banesco USA	2.70% 36-month CD	See review
EverBank	2.70% 3-year Yield Pledge CD	Internet bank See review
M.Y. Safra Bank	2.65% 36-month Online Promo CD	See review
Air Force Federal Credit Union	2.60% 3-year CD	Easy membership See review
Live Oak Bank	2.60% 3-year CD	Account review
Latino Credit Union	2.60% 36-month CD	Easy membership See review
MidFirst Direct	2.60% 36-month High Yield Online CD	Internet bank Account review
My eBanc	2.60% ($5k) 36-month Time Deposit	See review
Connexus Credit Union	2.53% (42-month Share Certificate closed after 3 years)	Easy membership Account review
INOVA Federal Credit Union	2.53% (3.00% 5-year Certificate closed after 3 years)	Easy membership Account review
Ally Bank	2.50% ($25k), 2.45% ($5k) 3-year High Yield CD	Internet bank See review
Ally Bank	2.26% (2.60% High Yield 5-Year CD closed after 3 years)	See review

Noteworthy Local Deals - 3-Year CDs

Sturgis Bank & Trust Company	3.05% 38-month Best in the Market CD	Southwest Michigan and Northern Indiana See review
Meridith Village Savings Bank	3.04% (blended) 3-year Step-Up CD Special w/checking	New Hampshire See review
City CU	3.00% 36-months CD	7 Texas counties (Dallas) See review
Greater Hudson Bank	3.00% 36-month CD	Orange, Rockland, and Westchester Counties, NY See review
Notre Dame Federal Credit Union	3.00% 36-months Certificate Special	Employees and members of more than 830 Affiliated Organizations See review
FNB Bank	3.00% ($100k max) 3-year CD Special	Western Kentucky See review
Unity Bank	3.00% ($10k max) 36-month CD Special	Northern NJ and Eastern PA
First Federal Credit Union	3.00% ($10k) 36-month CD Special	4 Iowa counties See review
Institution for Savings	3.00% 40-month CD	Massachusetts' North Shore See review
Gulf Coast Federal Credit Union	2.99% 36-month CD Special	3 Southwest Texas counties See review
National Bank of New York City	2.85% 36-41 month CD	NYC, Long Island, Westchester See review
Liberty First Credit Union	2.85% ($25k) 37-month CD Special	Lancaster and Seward Counties, Nebraska See review
Union Bank and Trust	2.78% 32-month Rising Rate CD	Colorado, Iowa, Kansas, Missouri, Nebraska, and South Dakota See review
Navy Army Community Credit Union	2.75% 30-month CD	8 South Texas counties See review
Cornerstone Bank	2.75% 36-month CD	Massachusetts and Connecticut See review
P1FCU	2.75% 36-month Share Certificate	12 Idaho and 2 Washington counties See review
Centreville Bank	2.75% ($20k) 3-year Promotion CD	Rhode Island See review
Stoughton Co-operative Bank	2.75% 40-months CD Special	Bristol, Norfolk, and Plymouth Counties, MA See review
HAB Bank	2.68% 36-month Promo Certificate	NYC, northern NJ, and southern CA
University of Iowa Community Credit Union	2.65%($100k), 2.55% ($1k) 30-month CD Special	All of Iowa and 4 Illinois counties, University of Iowa relationship See review
Union Bank	2.62% (blended) ($25k) 3-year Step CD	Northern Vermont and northwest New Hampshire See review
Stearns Bank	2.60% 3-year CD	Arizona, Florida, Georgia, Minnesota See review

4-Year CD Rates

Fidelity Brokered CD	3.10% 4-year non-callable CD	Issued by AMEX NB, CCB,DIS, NOPB, WFB*
The Vanguard Group Brokered CD	3.10% 4-year non-callable CD	Issued by AMEX NB, DIS, UBS, WFB*
Connexus Credit Union	3.00% 42-month Share Certificate	Easy membership Account review
ConnectOne Bank	2.94% 48-month Personal Certificate	See review
KS StateBank	2.90% 4-year CD	See review
KS StateBank	2.90% ($100k) 4-year Jumbo CD Internet Only Special	See review
Popular Direct	2.80% ($10k) 4-year Popular Direct CD	Internet bank See review
MainStreet Bank	2.75% 4-year CD	See review
Service Credit Union	2.75% 4-year Share Certificate Special	Military relationship See review
Hanscom Federal Credit Union	2.75% 48-month Certificate w/Premier Checking	Easy membership See review
EverBank	2.75% 4-year Yield Pledge CD	Internet bank See review
INOVA Federal Credit Union	2.65% (3.00% 5-year Certificate closed after 4 years)	Easy membership Account review
United States Senate Federal Credit Union	2.51% ($60k), 2.45% ($20k), 2.39% ($1k) 48-60 month CD	Easy membership
Ally Bank	2.35% (2.60% High Yield 5-Year CD closed after 4 years)	See review

Noteworthy Local Deals - 4-Year CDs

KEMBA Financial Credit Union	4.00% ($10k min/$50k max) 44-month Advantage Promo CD	7 Ohio counties Account review
City CU	3.25% 48-months CD	7 Texas counties (Dallas) See review
Tech Credit Union	3.25% ($100k) 50-month Jumbo Compound CD	4 NW Indiana and 2 NE Illinois counties See review
Tech Credit Union	3.12% 50-month Premium Compound CD	4 NW Indiana and 2 NE Illinois counties See review
University of Iowa Community Credit Union	3.00%($100k), 2.90% ($1k) 45-month CD Special	All of Iowa and 4 Illinois counties, University of Iowa relationship See review
Washington Trust Company	3.00% 4-year Promotional CD	Rhode Island, Connecticut, Massachsetts See review
Pinnacle Bank	3.00% 4-year CD	Phoenix and Scottsdale area, Arizona See review
Scient Federal Credit Union	3.00% 50-month Special Rate Share Certificate	Easy membership for residents of CT, MA, NY, and RI See review
State Bank	3.00% 48-month CD	Northwest Ohio and Northeast Indiana See review
P1FCU	2.95% 48-month Share Certificate	12 Idaho and 2 Washington counties See review
National Bank of New York City	2.95% 48-53 month CD	NYC, Long Island, Westchester See review
National Bank of New York City	2.90% 42-47 month CD	NYC, Long Island, Westchester See review
APG Federal Credit Union	2.80% 48-59 month CD	Dutchess, Ulster, and Orange Counties, NY See review
Crescent Bank	2.78% 48-month CD	Louisiana Account review
Mercantil Commercebank	2.75% 48-month Smart CD ($10k)	Florida and Texas See review
Dime Community Bank	2.75% 4-year CD	NYC metropolitan area Account review
Investors Community Bank	2.75% 4-year Certificate	6 northeast Wisconsin counties See review

5-Year CD Rates

Northwest Federal Credit Union	3.41% ($250k), 3.35% ($100k), 3.15% ($1k) 5-year Appreciation Certificate	Easy membership See review
Fidelity Brokered CD	3.30% 5-year non-callable CD	Issued by SMB*
Connexus Credit Union	3.25% 60-month Share Certificate	Easy membership Account review
The Vanguard Group Brokered CD	3.25% 5-year non-callable CD	Issued by AMEX NB, CCB, GSB, UBS, WFB*
Mountain America Credit Union	3.15% 5-year Term Deposit	Easy membership See review
Mountain America Credit Union	3.15% ($100k max) 5-year Term Deposit Plus (unlimited additional deposit)	Easy membership See review
Congressional Bank	3.10% ($25k) 60-month High Yield CD Special	See review
State Bank of India (IL)	3.10% 5-year CD
M.Y. Safra Bank	3.06% ($5k) 60-month Online Promo CD	See review
Popular Direct	3.05% ($10k) 5-year Popular Direct CD	Internet bank See review
United States Senate Federal Credit Union	3.01% ($60k), 2.95% ($20k), 2.89% ($1k) 60-month CD	Easy membership
MidFirst Direct	3.00% 60-month High Yield Online CD	Internet bank Account review
PenFed Credit Union	3.00% 5-year Money Market Certificate	Easy membershipAccount review
Navy Federal Credit Union	3.00% 5-year CD	Military relationship See review
American Bank	3.00% 60-month Promotion CD
Service Credit Union	3.00% 5-year Share Certificate Special	Military relationship See review
KS StateBank	3.00% 5-year CD	See review
Utah First Credit Union	3.00% ($500) 60-month CD	Easy membership
Quorum Federal Credit Union	3.00% 60-month CD	Easy membership See review
INOVA Federal Credit Union	3.00% 5-year Certificate	Easy membership Account review
First Internet Bank	2.94% 60-month CD	Internet bank See review
AFFCU (formerly Air Force Federal Credit Union)	2.90% 5-year CD	Easy membership See review
INOVA Federal Credit Union	2.90% 5-year Step-Up Certificate	Easy membership Account review
Synchrony Bank	2.85% 60-month CD	Internet bank See review
MainStreet Bank	2.85% 5-year CD	See review
DollarSavingsDirect	2.80% 60-month CD	Internet bank See review
Latino Credit Union	2.80% 60-month CD	Easy membership See review
Barclays	2.80% 60-month Online CD	Account review
Marcus by Goldman Sachs	2.80% High Yield 5-year CD	Internet bank See review
Capital One	2.80% 60-month 360 CD	Internet bankAccount review

Noteworthy Local Deals - 5-Year CDs

SRP Federal Credit Union	3.54% 54-month New Member CD	Arizona See review
City CU	3.50% 60-months CD	7 Texas counties (Dallas) See review
Founders Federal Credit Union	3.29% 60-month Share Certificate	South Carolina See review
Pinnacle Bank	3.25% 5-year CD	Arizona See review
Nusenda Credit Union	3.23% ($200k), 3.13% ($100k), 3.08% ($75k), 3.03% ($50k), 2.98% ($25k), 2.88% ($10k), 2.78% ($1k) 60-month CD	Easy membership for New Mexico residents Account review
Alaska USA Federal Credit Union	3.20% ($250k), 3.10% ($100k), 3.00% ($500) 60-month CD	Alaska, Washington, San Bernardino County (CA), Maricopa County (AZ) See review
Granite Credit Union	3.20% 60-months Certificate	Salt Lake County, Utah See review
P1FCU	3.15% 60-month Share Certificate	12 Idaho and 2 Washington counties See review
Prairieland Credit Union	3.15% ($100k) 60-month Jumbo Share Certificate	McLean County, Illinois See review
Union Bank and Trust	3.14% ($25k) 60-month CD Special	Colorado, Iowa, Kansas, Missouri, Nebraska, and South Dakota See review
Horizon Credit Union	3.04% 60-month CD Special	Washington, 8 Idaho and 14 Montana counties See review
Crescent Bank	3.03% 60-month CD	Louisiana Account review
National Bank of New York City	3.00% 54-59 month CD	NYC, Long Island, Westchester See review
Embassy Bank for the Lehigh Valley	3.00% 59-month CD	Northampton and Lehigh Counties, Pennsylvania See review
BMO Harris Bank	3.00% 60-month Special Rate CS	AZ, FL, IL, IN, KS, MN, MO, and WI See review
Cyprus Credit Union	3.00% 60-month Certificate	Utah See review
CapEd Federal Credit Union	3.00% 60-month Promotional Share Certificate	Idaho See review
Idaho Central Credit Union	3.00% 60-month Promo CD	Idaho Account review
Mercantil Commercebank	3.00% 60-month Smart CD ($10k)	Florida and Texas See review
RCB Bank	3.00% 60-month CD	Oklahoma and Kansas See review
Roselle Savings Bank	3.00% 60-month CD	7 northern New Jersey counties
Bank First National	3.00% 60-month CD	Wisconsin
Investors Community Bank	3.00% 5-year Certificate	6 northeast Wisconsin counties See review
University Federal Credit Union	3.00% 60-months Share Certificate	Salt Lake and Davis Counties, Utah
Prairieland Credit Union	3.00% 60-month Share Certificate	McLean County, Illinois See review
First National Bank	3.00% 61-month CD Special (w/checking)	MD, NC, OH, PA, SC, and WV See review

Over 5-Year CD Rates

Fidelity Brokered CD	3.45% 10-year non-callable CD	Issued by FFSLO*
The Vanguard Group Brokered CD	3.40% 10-year non-callable CD	Issued by DIS, GSB*
Fidelity Brokered CD	3.35% 7-year non-callable CD	Issued by SMB*
The Vanguard Group Brokered CD	3.30% 7-year non-callable CD	Issued by DIS, GSB*
Air Force Federal Credit Union	3.20% 7-year CD	Easy membership See review
First National Bank of America	3.15% 84-month Time CD
PenFed Credit Union	3.10% 7-year Money Market Certificate	Easy membershipAccount review
MidFirst Direct	3.00% 84-month High Yield Online CD	Internet bank Account review
KS StateBank	3.00% 7-year CD	See review
Sharonview Federal Credit Union	3.00% 84-month CD	Easy membership
Apple Federal Credit Union	3.00% 120-month CD
Marcus by Goldman Sachs	2.85% 6-year High Yield CD

Noteworthy Local Deals - Over 5-year CDs

Credit Human (formerly San Antonio Federal Credit Union)	3.35% 120-month Share Certificate	San Antonio, TX
Security Service Federal Credit Union	3.25% ($50k), 3.20% ($25k), 3.15% ($500) 7-year CD	Select areas in Texas, Colorado, and Utah
The First National Bank of Long Island	3.25% 10-year CD	Long Island, NYC, Brooklyn, and Queens Account review
Afena Credit Union	3.20% ($100k) 84-months Share Certificate	Grant and Wabash Counties, IN
Kemba Credit Union	3.05% 72-Month CD Special	14 SW Ohio, 8 northern Kentucky, 2 SE Indiana counties Account review
Eastman Credit Union	3.05% 6-year ($100k) Investment Certificate	7 Tennessee, 7 Virginia, 2 Texas counties Account review
Indiana Members Credit Union	3.04% 84-month CD	Central Indiana Account review
Amplify Credit Union	3.03% 84-month ($10k) Share Certificate	5 south central Texas counties Account review
First Republic Bank	3.00% ($10k) 6-year CD	CA, CT, FL, MA, NY, OR See review
Consumer Credit Union	3.00% 72-month CD	12 eastern Tennessee counties Account review
EFCU Financial	3.00% 84-month Super 7 Variable Rate CD	9 Louisiana parishes Account review
The First National Bank of Long Island	3.00% 7-year CD	Long Island, NYC, Brooklyn, and Queens Account review

*AMEX NB (American Express National Bank), BoC (Bank of China), CCB (Comenity Capital Bank), DIS (Discover Bank), FFSLO (First Federal Savings & Loan Association Olanthe), GSB (GS Bank), LBS&L (Luther Burbank Savings & Loan), MCBKX (Mountain Community Bank Knoxville), MSB (Morgan Stanley Bank), NOPB (Northpointe Bank), PINB (Pinnacle Bank), SB (Safra Bank), SFBT (Stifel Bank & Trust), SMB (SallieMae Bank), UBS (UBS Bank USA), WFB (Wells Fargo Bank)

CDs Removed Due To Low Rates Or Expired Specials

CDs Removed, No Longer Available - Nationwide

Banco do Brasil Americas	2.25% 1-year Promo CD	Account review
EBSB Direct	2.69% 20-month CD	Internet bank Account review
Banco do Brasil Americas	2.50% 2-year Promo CD	Account review

CDs Removed, No Longer Available - Local

Navigant Credit Union	2.50% 13-month Special CD	Rhode Island, Connecticut, Massachusetts See review
Vantage West Credit Union	2.25% 11-month CD Special	4 Arizona counties Account review
TruWest Credit Union	2.25% ($50k max) 14-month Investment Certificate	4 Arizona and 2 Texas counties See review
Park Bank	2.20% ($10k) 13-month CD Special	Southeast Wisconsin See review
East Boston Savings Bank	2.69% 20-month CD Special	Greater Boston metro area Account review
Vantage West Credit Union	2.50% 21-month CD Special	4 Arizona counties Account review
Park Bank	2.45% ($10k) 19-month CD Special	Southeastern Wisconsin See review
Franklin Savings Bank	3.10% ($25k) 42-month CD Special	Central New Hampshire Account review
Franklin Savings Bank	3.00% 42-month CD Special	Central New Hampshire Account review

CDs Removed, Rate Too Low - National

iGObanking

0.35% 60-month iGOCD

See review

CDs Removed, Rate Too Low - Local

First Federal Credit Union	2.15% ($10k) 12-month CD Special	4 Iowa counties See review
First Federal Credit Union	2.40% ($10k) 24-month CD Special	4 Iowa counties See review

Post Publication Edits

6/7/2018: Argentine Federal Savings 14-month CD Special added.

Fan_of_website | Jun 6, 2018 | Comment #2

While rates are rising now, we are also getting closer to the point where they will fall, aka the next recession. By June 2019, we will be in the longest economic expansion in U.S. history. Many economists are predicting a recession by 2020. After rates peak during a recovery, the typical period of flat to declining rates lasts 3-5 years. So if rates do peak in 2019, CDs that mature in 2020, 2021, or 2022 could do so during a period of lower rates than we see today. The average decline in the Fed funds rate during the last 9 recessions is about 420 basis points (340 points if you exclude the 1981-83 recession). If the Fed stops raising at 3.0% +/- 50 basis points, then the odds are we will return to the 0%-0.25% range.

Ken makes a good point about add-on CDs; these are a cheap insurance policy against a period of lower rates that could occur in the early 2020s. There is also an argument to be made that a 3% 5-year CD is a better option than a 3% 3-year CD and that a barbell CD ladder approach (investing in /= 5 year duration, but avoiding 2 to 4 year CDs) is a reasonable option.

Ken, any chance you could include an add-on CD section at DA? It may be a short list, but a useful tool, especially now. Thanks.

jib2424 | Jun 6, 2018 | Comment #3

Yes, please include an add-on section at DA. Thanks.

texark | Jun 6, 2018 | Comment #5

I would stop listening to supposed "experts" and "economists"......Nobody really knows. The US economy has suffered for many years before Trump and he is unleashing a recovery that could last a decade. I wish I would have listened to my own advice years ago when supposed experts were telling me a certain stock was near perfect and a must buy......about a year later it was worthless. Never again.

gregk | Jun 6, 2018 | Comment #8

What Trump has unleashed (presently and prospectively) are enormous federal budget deficits, - likely higher than in the Obama years, - and in Trump's case occurring during an economic expansion.

deplorable 1 | Jun 6, 2018 | Comment #14

@gregk: A big part of that deficit comes from the interest on the 10 trillion in debt Obama added. All that debt came with no tax cuts and a low GDP. The current economic expansion is the direct result of Trump's policies and nothing else.

Milty | Jun 6, 2018 | Comment #17

I think the current expansion predates Trump, notwithstanding all the GOP focus on the deficit (till they reversed).

deplorable 1 | Jun 6, 2018 | Comment #13

@texark: The so called economics experts have been predicting the next recession since before the last election. Funny how the exact opposite has happened.

deplorable 1 | Jun 6, 2018 | Comment #10

"By June 2019, we will be in the longest economic expansion in U.S. history"................This is only true if you actually believe that we had a economic recovery while Obama was president. As I have pointed out before there has NEVER in the history of the U.S. been a economic recovery without inflation and rising interest rates. What we had during the Obama years was a stock market recovery from very low levels due to 0% interest rates and massive QE. The recovery started after Trump was elected and is only a year and a half old. This is why all these gloom and doom predictions of a recession just around the corner will be proven false.

Milty | Jun 6, 2018 | Comment #18

An interesting argument that I have not seen substantiated elsewhere. Please site your sources.

Anonymous | Jun 7, 2018 | Comment #47

Deplorable1, you are completely wrong. Why don't you check how economic recovery is defined first. "An economic recovery is the phase of the business cycle following a recession, during which an economy regains and exceeds peak employment and output levels achieved prior to downturn. A recovery period is typically characterized by abnormally high levels of growth in real gross domestic product, employment, corporate profits, and other indicators."

Real GDP, employment, profits were all up under much of Obama presidency.

Also, note that president's policies don't have economic impact for at least a year or longer (depends on policies but as a general rule of thumb). A lot in the economy does not even come from President (some things are quite indirect, via FED assignments).

But if you really want to assign economy success or failure to a president, Obama's policies have continued to benefit economy for at least another year into Trump's presidency; just like Bush's policies were in charge of economy for some time into Obama presidency, etc.

deplorable 1 | Jun 7, 2018 | Comment #53

I wasn't going strictly by the definition of a economic recovery obviously but just making a personal observation. The Obama years were like treading water and now we are actually swimming again. If what we had during Obama was a economic recovery it has to be the weakest one I have ever seen. If all these economists were right then technically we should already be in a recession now which is why they have been predicting one for over 2 years. Instead the economy is booming, interest rates are rising, unemployment is dropping, the stock market is up etc. It sure looks like the start of a economic recovery to me. Now the typical economic expansion lasts about 5.5 years. Now if there is no recession in Trump's first term that's almost the typical length of a expansion particularly if you are counting the last year of Obama as a starting point since the FED actually did hike rates once back then. In other words I see no recession in Trump's first term.

The Mighty Sven | Jun 7, 2018 | Comment #54

The American economic recovery commenced in the early morning hours of November 9, 2016, in the midst of a huge surprise. It has been proceeding apace ever since. It's just that simple.

Anonymous | Jun 7, 2018 | Comment #56

Yes, you are not using the actual definition but just your politically-biased opinion. Like I said, policy changes take a long time to actually affect the economy and normal lag is around a year.

Interest rates have been rising long before Trump took office and continue to do so on the short end of the curve thanks to Fed, that thankfully Trump did not mess with much. On the long end of the curve, they are NOT rising in fact - market does not believe that they should. That's why we are in the flattened yield curve now.

Unemployment has been dropping ever since Obama policies took office. Trump policies has barely affected that too. Again Fed is more responsible for this, but Trump policies we start having effect if and when we get into trade wars.

The stock market - look at it from a year after Obama took office til a year after - it's had the great run in those 8 years, all the way up until Jan-Feb of this year. So far is has only gone sideways since then.

deplorable 1 | Jun 7, 2018 | Comment #60

@Anonymous: "Interest rates have been rising long before Trump took office"............lol ok now who is being politically biased? Interest rates went down for Obama's entire 8 years! The FED only hiked rates one time in his last year in office and interest rates in bank accounts and CD's actually DROPPED after that hike. Interest rates did not rise until Trump was elected.

Anonymous | Jun 8, 2018 | Comment #74

Sorry for misstatement - I meant it was rather clear what the Fed was going to do with rates long before Trump took office, and yes, the Fed started doing so already too. Interest rates did not keep going down during Obama - they just stayed down there for much of his term, indeed. That's something that needed to be done to get us out of the mess. It was always known ZIRP and QE would need to be unwound. First, discount rate went up in 2011 and later Fed Funds rate started going up in 2015. It's true that Fed increased rates faster starting Dec 2016, but that was the plan indicated by Fed all along. As you may have noticed, the Fed telegraphs what it's going to do quite transparently to the markets, long in advance. There was absolutely no change in policy by the Fed due to Trump. Its direction has not changed. Its approach has not changed. What Fed has been doing has absolutely nothing to do with Trump. Yellen has been doing what she would have done under Obama or Trump or Hillary, all through 2018. Trump did not replace her for a while and the new chairman by all accounts is not much different from her in his worldview or approach. And she was not much different from Bernanke. So, no, Trump gets 0 credit for any of it... except for *not* messing (or not being able to mess) with at least that part of the government!

Milty | Jun 8, 2018 | Comment #78

@Anonymous: From my reading on this, I believe you are correct, sir. (The previous statement that "Interest rates did not rise until Trump was elected" , if referring to the Federal fund rate, is incorrect.)

deplorable 1 | Jun 8, 2018 | Comment #85

@Milty: I don't know if you recall but that FED hike was a bit controversial. It occurred after they had lost all credibility by talking up rate hikes for years but never delivering. Then interest rates on savings and CD's abruptly dropped right afterwards. Just look at the chart above to see when interest rates on CD's and savings actually went up. It should be pretty obvious that it was right after the election.

buckeye61 | Jun 6, 2018 | Comment #20

#2 you make some excellent points about the future of interest rates. After suffering with ultra low rates since the 2008 recession even as the economy improved. I'm not confident that rates will continue to rise in 2019, and any significant event that negatively effects the markets will likely trigger a quick reversal in FED rate policy. Locking in a good 3&5 year rate could be a prudent move for savers, and these add-on CD's could be especially appealing.

Robb | Jun 6, 2018 | Comment #21

@Buckeye61 Mostly agree...pick your spots when the best deals are being offered well above market rates and keep some powder dry in higher savings rates. I did not plan on doing another rung on my current ladder this year until the Sharonview deal came into play. Have to act quickly with regards to the better deals as they typically don't last long.

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Comments

Sort by Date | Sort by Votes

102 Comments.

anonymous | Jun 6, 2018 | Comment #1

This opinion piece from June 4 by Ken's favorite economist concerns me:

https://www.bloomberg.com/view/articles/2018-06-04/the-fed-s-key-interest-rate-is-getting-close-to-neutral

It states that the Fed will reach the low end estimate of a 'neutral rate' within two more rate hikes (= September) and may then shift from being on 'autopilot' with raising rates to having a less clear policy path going forward.

Of course this does not mean that the Fed is done raising by September, but there is a 'risk' for us that the Fed will be done sooner than we think. If this concerns gains traction, I wonder what it will mean for longer-team CD and Treasury rates. They certainly will not rise on that concern, perhaps they might actually fall.

Bad FED policy | Jun 6, 2018 | Comment #6

The policy is not sustainable by the US treasury, borrowing at 3% or above is going to create a huge hole in the national budget, currently paying $485 billions annually just to service the interest, it is a huge dent for the whole economy (country), most of the payments on the national debt go to foreign countries and they do not spend it back here, but are coming back for more goodies (more fat rates, easy money and who will get rich, our foreign adversaries.)

deplorable 1 | Jun 6, 2018 | Comment #12

@Bad FED policy: It is not the FED's mandate to worry about the debt. Their main concern is inflation and employment. The employment numbers are good so their focus becomes inflation. With tax cuts, job growth and wage growth inflation will be picking up and the FED will need to continue raising rates. That being said the debt is a major problem and needs to be paid down. With more people working and thus paying taxes to the federal government there should be enough revenue coming in to start doing this. Spending still needs to be cut and both parties need to do it. Trump will have a opportunity to start paying down the debt after next tax season and if enough Republicans get elected he may actually be able to get something done without Democrat support.

Bad FED policy | Jun 6, 2018 | Comment #15

#12, you wrote: "...It is not the FED's mandate to worry about the debt....", not so, if the FEDs create or let inflation run rampant it is the end of a nation with $21 trillion in debt, furthermore, the FEDs are controlling the inflation numbers that controls the employment numbers and that controls the national debt indirectly. If we can no longer depend on borrowing because the FED was raising the rates to control the inflation, it will create a fall of a nation. Employment and the inflation are minuscule factors when we deal with the national debt.

Think in reverse, what is more beneficial for a debited nation, low interest rates to stay afloat or low employment rate, (the inflation numbers are made up and can not be taken seriously) as you said, the dual mandate is two edged sword, pick one side and prey. I like low interest rates that will bring low inflation numbers and will not let the dollar slide in purchasing power. Look at any nation on earth, the moment they raise the interest rates, their currency is trashed.

deplorable 1 | Jun 7, 2018 | Comment #22

@Bad FED policy: We just had low inflation(supposedly) with low interest rates for 8 years. That didn't work out too well for me as I was earning a nice 6% APY before that. Now with rates just starting to finally rise you want to go back to earning nothing on savings again? I figured the debt was going to go up no matter who got elected. I much prefer tax savings, higher interest on savings and CD's and a rising stock market with dividend hikes. Even the dollar has held up well recently. The U.S. dollar is the number one reserve currency and as such you can't really compare it to other countries. In fact The dollar looks like it will soon overtake the Euro. The only real concern is that the debt needs to be addressed seriously by the president and both parties. I would like to see the debt paid down and a 5% FED rate personally. Other than the debt though everything else is going pretty well.

Bad FED policy | Jun 7, 2018 | Comment #23

#22, The consequences of 6% interest rates are still doing some damage to our country, the real estate market collapsed and the unemployment rate went to 22% and we had to borrow money to stabilize the markets and with QEs insane pumping we created hidden debt and we are still recovering from such insane interest rates, if the FED continue to hike the rates, we all gonna pay for it this time. The savers will have to BAIL-IN the banks and the nation.

deplorable 1 | Jun 7, 2018 | Comment #27

You are blaming high interest rates for the housing and financial crisis? We had rates like that for 40 years with no consequences. The housing crisis was from Clinton and continued with Bush lowering the lending standards and banks doing 0 down no doc loans. The borrowers who didn't make their payments are also at fault. 6% interest rates had nothing to do with it.

Bad FED policy | Jun 7, 2018 | Comment #28

#27, Over 70% of todays mortgages are between 3-4%, If 6% interest rate pops up, the housing market will freeze again, it will be like 50%-100% increase in mortgage's monthly payments and I guess another default will happen overnight from those paying mortgages around 3% today. There will be less buyers and you can not sell the property above the current loan amount and negative amortization will come and there you have it, new housing crises and new consumer credit defaults and new bail out for the banks and so on...I hope you can see the relevance of 6% interest rate.

anonymous | Jun 7, 2018 | Comment #31

The question really is, why would people have to depend on loan rates this low to be able to finance their lifestyles? That almost encourages people to take on more debt than is healthy.

If we really depend on 3-4% loan rates for the long term to keep this country going, we're already in trouble. What it probably means is that there is no longer a middle class, a middle class life style has become unaffordable for most, and too much wealth is in the hands of too few people.

deplorable 1 | Jun 7, 2018 | Comment #39

@anonymous: Exactly, all that 0% interest rates did was to encourage folks to buy bigger houses than they could truly afford and take on more debt. The housing crisis and subsequent financial crisis was due to high debt and lack of savings. The savings rate went negative for the first time just before the housing crisis. Everyone wants to blame Bush or the banks but the reality is that it was the debtors who didn't pay their loans that was the root cause. Now do we want to encourage savings or debt? If you want to encourage savings then interest rates need to rise.

deplorable 1 | Jun 7, 2018 | Comment #38

Debtors can suck it up like I did when I had a mortgage! Us savers have been shafted for a decade in order to support debtors. I was paying 7.125% and that was for a 7 year balloon. Rates were 8% for 30 year fixed back then. It didn't stop me from buying a house as renting is a losing proposition. It wasn't interest rates that caused the housing crisis it was the lowering of lending standards. Rising interest rates will not cause another housing crisis.

Bad FED policy | Jun 7, 2018 | Comment #44

Deplorable 1, If there are no debtors, there will be no savers, think about it, selfishness and greediness can drive anyone blind. Why the savings rates were next to nothing after the crisis 9-10 years ago, because there were few borrowers and debtors in possession. We are slowly building a repeat of the same mistake we did a decade ago.

deplorable 1 | Jun 7, 2018 | Comment #61

Who is being selfish and greedy? Us savers have already suffered a decade with ultra low savings rates. To me it is much more greedy and selfish to buy some huge mansion you can't really afford just because rates are 3% on mortgages. I'm just looking to eek out a small income here on a lifetime of savings.

deplorable 1 | Jun 6, 2018 | Comment #11

The FED will need to bump up their dot plot and interest rates due to inflation. This is a good thing because they will need to get rates back to 5% before the next recession which is still a long way off contrary to the belief of most economists.

Bad FED policy | Jun 6, 2018 | Comment #16

#11, that is the old thinking, the interest rates no longer control inflation or employment or economy. We need the new FED stay out of buying treasuries and interfering in the economy (which will strengthen the treasuries and the dollar), they are controlled by the globalist and work against the interest of the American people.

alan1 | Jun 6, 2018 | Comment #4

The 5-year rates listed for Northwest Federal Credit Union are only available to Heritage Club members (over age 62). For other members, the tiered APYs are 3.05/3.10/3.15%.
https://www.nwfcu.org/banking/checking-savings/certificates

The highest rate on a 5-year CD offered by Vanguard has been increased to 3.30% (Sallie Mae Bank).
The highest rate on a 7-year CD offered by Vanguard has been increased to 3.35% (Sallie Mae Bank).

gregk | Jun 6, 2018 | Comment #7

What happens with deposit rates if the US economy moves into a circumstance of "stagflation" (declining output but increasing inflation), - and how might the Fed likely respond to that?

Bad FED policy | Jun 6, 2018 | Comment #9

QE-5 will do it. The FED learned its lesson long time ago, please read about bail-in disclosures that every bank is allowed to introduce today. Stagflation can be controlled and manipulated with just few keystrokes (entries) in the FED's phony books.

Milty | Jun 6, 2018 | Comment #19

Where do you think interest rates with respect to deposit accounts should be now, what would like them to be?

Bad FED policy | Jun 7, 2018 | Comment #24

#19, The interest rates should be a reflection of the nation's productivity and be variable, not static. Raising the rates for a reason to stop another reason is not a reason to hike the rates. Think logically, if the rates are up just because they need to be up, it is a wrong reason to hike. If productivity is low or the GDP stay constant, the reason to hike the rates is a falls positive and will create downfall in the economy. To appease the savers it is not a reason to reflect a wealth creation, nobody can get rich with 3% interest rates and after the taxes and inflation, the earned wealth is neutralized and becomes just an ego satisfaction but it cost all of us $483 billions a year hidden tax on all of us and hidden wealth destruction.

anonymous | Jun 7, 2018 | Comment #29

#24, while I agree with some of your comments regarding the Fed, it also needs to be stated that the Fed only has direct control over short-term rates.

Long-term rates are driven by many market factors, domestic and international. For example, fear over solvency to service the debt or fear over higher long-term inflation could cause long-term rates to rise.

So, one of the most important aspects of Fed policy is to make a convincing argument that the Fed can and will control inflation. The minute that this "trust" in Fed policy is lost, long-term rates will rise. So the Fed naturally needs to use whatever policy tools it has to make sure inflation is contained, including to raise short-term rates as high as necessary.

And maybe therein also lies the answer for gregk about stagflation: likely they would raise interest rates despite making the economy worse. Unless that would make the economy so bad that we run the risk of not being able to pay the interest on the debt. But I think that would be more of a political issue, if the government (and people) would be willing to pay higher taxes and/or have lower benefits.

Bad FED policy | Jun 7, 2018 | Comment #45

#29, If you only knew who controls the FED, your point of view will change at once. There is no trust among central banks around the globe, they are being orchestrated by a select group of people to serve their own agenda. (The phrase: Independent FED, only applies to US laws, which means, not to interfere in their rightful owners decisions).

111 | Jun 7, 2018 | Comment #46

OK, I'll bite. So - who DOES control the fed?

Bad FED policy | Jun 7, 2018 | Comment #57

#46, If you were not curious to find out by now, there is no point going there. Just think, who created the FED and why and who controls it now. There is plenty of a true material out there. Just stay out from the corrupt media before they tell you the FED is a US constitutional body and continue to brainwash the sheeple.

111 | Jun 7, 2018 | Comment #63

Sorry, but when someone says "if you only knew who controls the Fed" - and then, when asked a direct question, for example - "Well, who in fact DOES control the Fed" - that person cannot give a responsive and/or detailed answer - then I gotta smile.

Perhaps it's the Trilateral Commission of yesteryear, or maybe the 3 Witches of Eastwick?

And I say this as, primarily, a fiscal conservative.

Bad FED policy | Jun 7, 2018 | Comment #64

#63, I can tell you are not interested in the truth, but I'll give you some hints and quotes:
1) “Give me control of a Nation’s money supply, and I care not who makes its laws.”— M. A. Rothschild
2) '... The most powerful men in the United States were themselves answerable to another power, a foreign power, and a power which had been steadfastly seeking to extend its control over the young republic since its very inception. The power was the financial power of England, centered in the London Branch of the House of Rothschild. The fact was that in 1910, the United States was for all practical purposes being ruled from England, and so it is today' (Mullins, p. 47-48). I did read this factual book and is all true.
3) To unmask this blatant misrepresentation, the late Congressman Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s, described the Fed in the following words:

“Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.”
4) The top eight shareholders are: the Rothschild Banks of London and Berlin; Lazard Brothers Banks of Paris; Israel Moses Seif Banks of Italy; Warburg Bank of Hamburg and Amsterdam; Lehman Brothers of New York; Kuhn, Loeb Bank of New York; Chase Manhatten; and Goldman, Sachs of New York (Kah, p. 13).
5) This is the true flow chart and as you can see the American people are irrelevant:

N.M. Rothschild , London - Bank of England
______________________________________
| |
| J. Henry Schroder

| Banking | Corp.
| |
Brown, Shipley - Morgan Grenfell - Lazard - |
& Company & Company Brothers |
| | | |
--------------------| -------| | |
| | | | | |
Alex Brown - Brown Bros. - Lord Mantagu - Morgan et Cie -- Lazard ---|
& Son | Harriman Norman | Paris Bros |
| | / | N.Y. |
| | | | | |
| Governor, Bank | J.P. Morgan Co -- Lazard ---|
| of England / N.Y. Morgan Freres |
| 1924-1938 / Guaranty Co. Paris |
| / Morgan Stanley Co. | /
| / | \Schroder Bank
| / | Hamburg/Berlin
| / Drexel & Company /
| / Philadelphia /
| / /
| / Lord Airlie
| / /
| / M. M. Warburg Chmn J. Henry Schroder
| | Hamburg --------- marr. Virginia F. Ryan
| | | grand-daughter of Otto
| | | Kahn of Kuhn Loeb Co.
| | |
| | |
Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y.
| | --------------------------
µ
| | | |
8
| | | |
Lehman Brothers - Mont. Alabama Solomon Loeb Abraham Kuhn
| | __|______________________|_________
Lehman-Stern, New Orleans Jacob Schiff/Theresa Loeb Nina Loeb/Paul Warburg
------------------------- | | |
| | Mortimer Schiff James Paul Warburg
_____________|_______________/ |
| | | | |
Mayer Lehman | Emmanuel Lehman \
| | | \
Herbert Lehman Irving Lehman \
| | | \
Arthur Lehman \ Phillip Lehman John Schiff/Edith Brevoort Baker
/ | Present Chairman Lehman Bros
/ Robert Owen Lehman Kuhn Loeb - Granddaughter of
/ | George F. Baker
| / |
| / |
| / Lehman Bros Kuhn Loeb (1980)
| / |
| / Thomas Fortune Ryan
| | |
| | |
Federal Reserve Bank Of New York |
|||||||| |
______National City Bank N. Y. |
| | |
| National Bank of Commerce N.Y ---|
| | \
| Hanover National Bank N.Y. \
| | \
| Chase National Bank N.Y. \
| |
| |
Shareholders - National City Bank - N.Y. |
----------------------------------------- |
| /
James Stillman /
Elsie m. William Rockefeller /
Isabel m. Percy Rockefeller /
William Rockefeller Shareholders - National Bank of Commerce N. Y.
J. P. Morgan -----------------------------------------------
M.T. Pyne Equitable Life - J.P. Morgan
Percy Pyne Mutual Life - J.P. Morgan
J.W. Sterling H.P. Davison - J. P. Morgan
NY Trust/NY Edison Mary W. Harriman
Shearman & Sterling A.D. Jiullard - North British Merc. Insurance
| Jacob Schiff
| Thomas F. Ryan
| Paul Warburg
| Levi P. Morton - Guaranty Trust - J. P. Morgan
|
|
Shareholders - First National Bank of N.Y.
-------------------------------------------
J.P. Morgan
George F. Baker
George F. Baker Jr.
Edith Brevoort Baker
US Congress - 1946-64
|
|
|
|
|
Shareholders - Hanover National Bank N.Y.
------------------------------------------
James Stillman
William Rockefeller
|
|
|
|
|
Shareholders - Chase National Bank N.Y.

I do not think you can comprehend all of this info, but at least I proof myself, I care for this country.

111 | Jun 8, 2018 | Comment #70

I especially like your line item that state "US Congress - 1946-64". Not any time before? Or after? Just that one time period?

The only "usual suspect" missing from your litany are "The Creature From Jekyll Island" (whoops, that's a book title, not a person.

Conspiracy theory much?

deplorable 1 | Jun 8, 2018 | Comment #72

@111: I'm surprised he didn't throw the Koch bros. in there.

ISeeYou | Jun 12, 2018 | Comment #102

You're not nearly as subtle as you think you are. You quote the noted anti-Semite Louis McFadden and then list a bunch of Jewish people who are 'in control of the Fed'.

Am I picking up your 'hints' correctly?

parsimonious | Jun 7, 2018 | Comment #50

Ever hear of QE? The whole point of that was to flatten the yield curve.

Robb | Jun 7, 2018 | Comment #55

QE is now QT and the unwinding is expected to pick up significantly in Q4 this year. Right now the balance sheet is still bloated:

https://fred.stlouisfed.org/series/WALCL

BrokeredCDBum | Jun 7, 2018 | Comment #25

5 Year Brokered CD 3.30% = Direct CD 3.10%
5 Year Brokered CD 3.25% = Direct CD 3.06%

warren | Jun 7, 2018 | Comment #26

Very misleading information. You assume any interest paid from the brokered CD would earn 0%. Who would leave all the interest earned from their brokered CD under a mattress for 5 years???

BrokeredCDBum | Jun 7, 2018 | Comment #35

Then by your logic, ranking Brokered CD 3.30% underneath Direct CD 3.40% is very misleading as well.

The tables improperly conflate simple and compound interest for different products.

Richard | Jun 7, 2018 | Comment #48

I agree with warren’s comment #26, and I also agree with the portion of your comment #35 which states: “The tables improperly conflate simple and compound interest for different products.” Perhaps an appropriate solution would be if Ken merely added an asterisk after the posted Fidelity and Vanguard brokered CD rates. The asterisk would indicate that the interest rates listed for brokered CDs are based on simple interest while the interest rates listed for direct CDs are based on compound interest (APY in this case).

Bankity | Jun 12, 2018 | Comment #103

Brokered CDs are a choice. I have been transitioning my CD capital to Vanguard. Rates are decent enough. CDs only rep a portion of my portfolio. Also, you can select a CD that pays out your interest monthly to your sweep, ready for reinvestment elsewhere.

CD pays quarterly | Jun 7, 2018 | Comment #30

OK, so I opened a 5yr CD at a local CU, I usually have the monthly int being deposited into my MnyMkt. The 1st of June was the first full month and I was looking for the deposit, I found the interest is paid out every "quarter" , I had to go to the CU to get the amount cause it didn't show up.

Now my question is this (am asking here cause I have to wait till tomorrow to ask them)

If the interest that I was shown isn't being deposited on a monthly basis, but only on a 3 mo basis, but also doesn't show up when I check the CD account on line, how would they be able to compound the interest, ie the original amount in the CD still shows the same amount after this first months interest, shouldn't the CD show the accumulated interest of this 1st month be added to the CD? to show a different total to be used in calculating the next months interest?

I sent them an email, about this, cause I was saying if I moved the interest to my MnyMkt it would at least continue to get the rate there, if it doesn't show up on the CD total each month, what happens to that interest, is it just sitting there in limbo and after 3 months transferred to my MnyMkt with only the total of the 3 months of usual interest?

If they do that it doesn't even seem legal, that would be like having 3 months of money sitting idle.

As I said its just a question thrown out there since this is the first time I had this happen, all my other CD's always paid every month. And I would think that the least would be the monthly interest would show up in the CD itself. But as I said when I checked on line, only the starting amount of the CD was there, and no way to know what the "monthly" amount was until I went in and had the guy print me off a copy of their info. Which btw he said he would need to do for me each month to know what it is and send me via email.

So anybody have a CD like this and have some insight?

anonymous | Jun 7, 2018 | Comment #32

When you opened the CD, you should have received a disclosure that explains how often the CD interest is credited. But this is really only a concern if you're planning to withdraw the interest on a regular basis or something like that.

I think one of my CDs also credits every quarter. The time interval in which interest accrues/compounds may be different from the interval in which it is paid. Both are typically stated in the disclosure, e.g. compounds daily and is paid quarterly, something like that.

If you opened the CD based on a stated APY (annual percentage yield), then this APY already includes all the math to make the CD compound at the proper stated rate. It will probably have a stated rate (divided by 365 for daily accrual) and a stated APY.

Anyways, your situation doesn't sound too much out of the ordinary, at first glance. Try to get your CD disclosure!

anonymous | Jun 7, 2018 | Comment #33

So I can confirm that my CD with Chartway FCU is credited quarterly and also appears to compound quarterly.

The compounding period appears to make little difference to the bottom line, for any reasonable current CD rate. For example, my 2.5% CD there with quarterly compounding has 2.52% APY. With daily compounding it would be 2.53%.

anonymous | Jun 7, 2018 | Comment #34

... and just to further continue my thought, if the interest is indeed paid quarterly, I would expect absolutely no activity to show on your CD account for the month, just as it doesn't show monthly activity for my Chartway CD. But the interest for the quarter does show up at the end of each quarter.

Some banks have a little online feature where they show the accrued (but not yet credited) interest for their CDs or savings accounts, but many do not. Anyway, in that case, it still would not show up as any form of statement credit, it's just displayed somewhere in the account info.

CD int quarterly | Jun 7, 2018 | Comment #36

its a 3% with 2.97% rate, says dividends compounded "quarterly", dividends credited "quarterly" and has a 180 day EWP.

I'm just wondering why it can't be shown what it earns per month somewhere when checking on line. And if this "quarterly" compounding is as good as if it was moved on a monthly basis to the mnymkt that gets .75 on the balance each month.

CD int quarterly | Jun 7, 2018 | Comment #37

its a 5yr CD, and yes I have it set to have the int credited back to my mnymkt.

gettin real | Jun 7, 2018 | Comment #51

are you asking if earning 0.75% is better or worse than earning 2.97%?

anonymous | Jun 8, 2018 | Comment #65

I think it' pretty typical in this case that it does not show you anything about what it earns per month (or more precisely, how much has accrued in a month).

There's nothing to move on a monthly basis because the dividends are credited quarterly. Basically, you'll get approx. 2.97% divided by 4 = 0.7425% of your balance credited per quarter. Compounded quarterly, this indeed is a 3% APY:

(1 + 0.007425)^4 - 1 = 0.0300 = 3.00%

If this was sold to you as a 3% CD then there is nothing to worry about, the rate is such that when quarterly compounded, you receive exactly 3%. Please note that the compounding assumes you leave the money in the CD, otherwise your return on this CD will be simply 2.97%.

You should move the interest to your money market account if you can get higher than 3% there.

deplorable 1 | Jun 7, 2018 | Comment #40

You have to look at the terms of the CD. The interest may be compounded daily but only credited monthly. In this case your interest is also earning interest on a daily basis even though it is only credited quarterly. Some banks only compound interest annually, semi annually, quarterly or monthly. I always look for daily compounding myself. One you know the terms you can calculate the quarterly interest down to the penny even though it has not yet been posted. Just take your interest rate APR not APY and divide by 365 to get your daily rate. Then multiply that by the days in the quarter. This amount will change though quarter to quarter as the number of days will be different.

deplorable 1 | Jun 7, 2018 | Comment #41

I meant only credited quarterly in the post above.

Reply | Jun 7, 2018 | Comment #42

dividends compounded "quarterly",

Reply | Jun 7, 2018 | Comment #43

But as I said, it does have a "monthly" interest amount, its just not visable. But I can get that information from the cu guy. So I'm assuming I'd need to have all 3 to calculate what they would total up to, as they will base the rate on that at the end of the quarter. I'm still not sure that would be better than the way I was doing it, by having the interest put back into the mnymkt that than got the..
. 75% each month going.

reply | Jun 7, 2018 | Comment #49

OK, I think I got it figured, I assume,

looks like if I had it going back to the mnymkt it would only come out to like $1.12 added counting 3 months of monthly int, while doing it the quarterly way, the total of 3 mo getting the higher rate, It comes out to over $4.00 bucks more added to the total interest for the 3 mo.. So it looks like a better deal to just leave it be.

gettin real | Jun 7, 2018 | Comment #52

yes, 2.97% is higher than 0.75%, most of the time.

Reply | Jun 7, 2018 | Comment #62

Lol, yup u would think, smirk

It's just that this was the first time I had one like this, and wasn't sure how it worked when the principal amount of the opening CD stayed the same, it looked like only the monthly x3 was what was transferred.

I wasn't aware that that total was than used as the "compound" rate at the end of the quarter.

So now I know how it works. It may have sounded stupid, but it wasn't clear to me.

anonymous | Jun 8, 2018 | Comment #66

#62, no problem, I'm glad if we could help you to figure it out. It's important for all of us to understand how our CD compounding works so we can make the correct choices. I'm sure you'll get an opportunity to help us next time.

anonymous | Jun 8, 2018 | Comment #67

Just to slightly disagree with deplorable for a moment ... if you look at the APY, then the compounding and crediting period really doesn't matter, as long as you leave all the interest compounding in the CD.

A CD that compounds and credits interest once a year at 3.01% APY will be better than a CD that compounds daily at 2.99% APY.

deplorable 1 | Jun 8, 2018 | Comment #71

@anonymous: That's why I said to use the APR to calculate the interest for yourself not the APY. The compounding frequency does matter when you are trying to calculate the exact dollar amount for the month or quarter. I look at the APY when comparing rates but use the APR when calculating the actual dollars that will be earned in a given time frame.

anonymous | Jun 8, 2018 | Comment #75

Deplorable, OK, agreed to use the APY for comparison purposes and the APR to calculate the amount to be credited!

Reply | Jun 8, 2018 | Comment #68

Thanks, that's what I call an understanding reply

Reply | Jun 8, 2018 | Comment #69

My comment 68 was for #66

To #70, it's all good, I have no problem moving the quarterly interest back to the mnymkt even if the rate there is less. I will be using it later with other funds to open other short term CDs. This one is 60-Months.

#58 - This comment has been removed for violating our comment policy.

#59 - This comment has been removed for violating our comment policy.

deplorable 1 | Jun 8, 2018 | Comment #73

Check out what is happening with Popular direct. They are freezing accounts for 60 days and people are reporting they still don't have access to their funds even after the 60 day hold has passed! I wonder if there is something wrong with the bank financially as this is very strange behavior.

Milty | Jun 8, 2018 | Comment #76

Where is this being reported? I just contacted PopularDirect: the 60 day hold is on the initial deposit when opening a savings account, which can be lifted upon request. My account, which continues to earn the 2.0% APY, is not locked or frozen.

deplorable 1 | Jun 8, 2018 | Comment #77

Right here on DA: https://www.depositaccounts.com/banks/popular-direct.html#promo34007

Milty | Jun 8, 2018 | Comment #79

Thanks for the link. Although my phone call to PD was reassuring, all these DA postings are indeed a concern . . . I guess I will just have to test a withdrawal to my linked account.

Anonymously | Jun 8, 2018 | Comment #80

Hey Deplorable

Do you think it is good Trump wants to eliminate the Consumer Protection Financial Bureau?

deplorable 1 | Jun 8, 2018 | Comment #81

While it doesn't sound good he most likely did this as a cost saving measure. I don't know how much the program cost or how successful it actually was at protecting consumers. I personally have not used them. It looks like it may have been political from these articles: https://www.nationalreview.com/2016/12/consumer-financial-protection-bureau-tragic-failures/
https://www.forbes.com/sites/norbertmichel/2017/01/24/the-cfpb-is-in-the-crosshairs-exactly-where-it-belongs/#4d515a501a4f

bankity | Jun 8, 2018 | Comment #83

Cost saving? that is one way of looking at it. Trump is *clearly* representing corporations and donors, not the American people or consumer. By eliminating consumer protections, it allows banks to charge higher fees, interest rates, and in the end, make a larger profit. Looks a lot like authoritarianism to me: get rid of dissenting voices: http://thehill.com/policy/finance/361935-cotton-fire-anyone-in-cfpb-who-disobeys-mulvaney

deplorable 1 | Jun 8, 2018 | Comment #84

@bankity: While I don't like high bank fees I don't recall ever paying any. I work hard at reading the fine print in order to avoid them. The best consumer protection I can think of is being a well informed consumer. It looks like this was more of a liberal politically biased organization in the guise of a consumer protection organization.

deplorable 1 | Jun 9, 2018 | Comment #86

And, now we have a conservative politically biased organization in the guise of a consumer protection organization...

deplorable 1 | Jun 9, 2018 | Comment #87

The National Review and Forbes...stalwart supporters of consumers...right!

#88 - This comment has been removed for violating our comment policy.

deplorable 1 | Jun 11, 2018 | Comment #95

This guy steals my handle and my comment get deleted? What gives no conservative political commentary allowed?

2hrd | Jun 11, 2018 | Comment #96

you always push it too hard

deplorable 1 | Jun 11, 2018 | Comment #97

Well it's tough to give a opinion while remaining "politically correct".

deplorable 1 | Jun 11, 2018 | Comment #98

Well it's tough to give a opinion and remain politically correct.

bankity | Jun 8, 2018 | Comment #82

Banks with high deposit rates are often trying to raise capital and this is a sure sign of a potential issue. If you read the reviews to Popular Direct there are lots of complaints about them. Lots of info there. Complaints galore about teaser rates, withdrawal restrictions. etc.

Milty | Jun 11, 2018 | Comment #93

Regarding Popular Direct, just completed a small external transfer, no problems. Account was opened back in April, still earning 2% APY, and is not locked.

Bankity | Jun 11, 2018 | Comment #100

Glad to hear!

InterestYields | Jun 10, 2018 | Comment #89

The Fed has a surprise in store that could mean an early end to interest rate hikes..

Great coverage-analysis as always Ken, we should have more insight this week.

Can't Trust Fed | Jun 10, 2018 | Comment #90

Yes and that's why many of us have been picking our spots when above market deals are being offered. Because as we've seen in years past you can never trust the Fed based on their outlooks which have proved unreliable many times over the years.

Hoody | Jun 10, 2018 | Comment #91

that's why I'm not all that giddy about some of these 2 yr deals, I'm looking at either going out the 5yr type or real short like 6 or 9 mo. I'd rather be a qt low, than run the block dry, ie I may lock in at 3% and rates may yet go to 3.5 and in some area's a lucky few have, than to find my 2yr CD's mature in yet another 2008 scenario. I stay local, so I only deal with with what rates are available here. Its working out OK, I have more incoming, than out going, and that's all that matters at this point.

Been around long enough now to see rates way up, when I didn't have the funds, and way down when I did, but never got into anything like stock or whatever, but still managed to do OK for myself. Although nobody can foresee the future, you do kinda pick up some points along the way to old age and know not to sit too tight when things look at least do able.

At 72 "long term" doesn't mean a hell of a lot, smirk

still learning | Jun 10, 2018 | Comment #92

https://www.thebalance.com/what-is-fiscal-policy-types-objectives-and-tools-3305844

deplorable 1 | Jun 11, 2018 | Comment #94

Check out Northern Bank Direct 2.26% APY Money market account! Unlimited external accounts for ACH transfers and free complimentary checks. Other than the $5,000 cap for ACH transfers initiated through their website this account looks like a clear winner. I just signed up as this is the best deal for liquid cash I have seen in a long time. Perfect timing too as I have a 2.28% $100,000 Wilshire bank(Bank of Hope) Installment savings account maturing today.

Robb | Jun 11, 2018 | Comment #99

@deplorable1. Good catch on this one! Much better than I've seen. The 3 year at 3.01% isn't bad either. Yeah the 5k could be a pain but...nothing is perfect.

deplorable 1 | Jun 11, 2018 | Comment #101

Actually that 3.01% CD is only for 30 months 2.5 year. I like the fact than Ken includes these odd term CD's while checking rates as it is very helpful in getting a higher rate for a shorter term. I never use Bankrate anymore except for the free credit report.

Milty | Jun 12, 2018 | Comment #104

That's a $5000 maximum per day up to a maximum of $25,000 per month, if using NorthernBankDirect to initiate ACH the transfers. Other alternatives may be your external bank can initiate the ACH transfer, or perform a wire transfer, or use the good old days of mailing a check.

Richard | Jun 13, 2018 | Comment #105

Since this afternoon there is a new interest rate leader in 4-year term, brokered CDs. Fidelity is now offering 4-year term, new issue, non-callable, brokered CDs from both Citibank and Wells Fargo Bank at 3.15%.

#106 - This comment has been removed for violating our comment policy.

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