CD Rates Summary - October 19, 2021

There weren’t many CD rate changes in the last two weeks. No major online bank had any CD rate changes. For the less-well known online banks and easy-membership credit unions, about half of the noteworthy rate changes were rate hikes.

The two most noteworthy of the CD rate changes were rate hikes at the credit unions PenFed and Veridian.

On October 8th, PenFed increased three of its long-term CD rates. Its 7-year CD had the largest rate gain, rising 40 bps to 1.50% APY. The 5-year and 3-year CD rates went up 15 bps to 1.25% APY and 1.00% APY, respectively. According to PenFed, these new rates are limited-time offers. Thus, it’s unlikely that these rate gains are the start of a steady rise of CD rates at PenFed. Nevertheless, CD specials with competitive rates are always a good sign of an institution in need of more deposits.

The other noteworthy rate change was the rate increase of Veridian Credit Union’s 30-month Bump-Up CD Specials. Its Jumbo 30-month CD rate increased 20 bps to 1.00% APY.

Noteworthy CD rate changes from the last two weeks are included below (All percentages are APYs).

I’ve separated them into three groups: 1) the popular banks, 2) the less well-known banks that have been rate leaders, and 3) the credit unions with easy membership requirements.

Popular Online Banks:

• None

Less well-known banks that have been rate leaders in the past:

• MY Safra Bank (3y 0.30% → 0.61%)
• United Texas Bank (3y 0.65% → 0.60%, 1y 0.60% → 0.40%)
• Luana Savings Bank (3y Jbo 0.50% → 0.55%)
• Industrial Bank (4y 0.35% → 0.20%, 1y 0.10% → 0.03%)

Credit unions that have easy membership requirements:

• PenFed CU (7y 1.10% → 1.50%, 5y 1.10% → 1.25%, 3y 0.85% → 1.00%)
• Veridian CU (30m Jbo BU 0.80% → 1.00%)
• Spectrum CU ($250k+ 5y 0.75% → 0.80%)
• Spectra CU (5y 0.40% → 0.65%, 1y 0.15% → 0.40%)
• Evansville Teachers FCU (1y 0.55% → 0.50%, 6m 0.50% → 0.45%)
• Hope FCU (2y 0.40% → 0.25%, 1y 0.30% → 0.15%)
• University FCU (5y 0.65% → 0.25%, 1y 0.20% → 0.01%)

Brokered CD Rates

This was another week with no non-callable 10-year brokered CDs at both Fidelity and Vanguard. However, 7-year non-callable CDs were available at both Fidelity and Vanguard. Fidelity had the highest rate at 1.20%. Vanguard’s highest 7-year rate was only 0.95%, the same as two weeks ago.

Long-term brokered CD rates have been disappointing since State Bank of India stopped issuing its 10-year and 7-year non-callable CDs. In July, State Bank of India had issued a 1.35% 7-year CD and a 1.80% 10-year CD. These had been issued at both Fidelity and Vanguard. Rates from other issuers for these terms have been much lower.

For non-callable CDs with terms from 18 months to 5 years, the top 2-year and 3-year CD rates went up from two weeks ago at both Fidelity and Vanguard. Most noteworthy were the top 3-year CDs at Fidelity and Vanguard. Both were offering the 3-year CD issued by State Bank of India with a 0.80% rate. Two weeks ago, the top rate was only 0.65% at both Fidelity and Vanguard. The top 4-year and 5-year CD rates went down at Fidelity from two weeks ago, and now they now match the top rates at Vanguard, 0.75% for 4 years and 1.00% for 5 years. The top 18-month CD rate remained unchanged at both Fidelity and Vanguard (0.25%).

For short-term CDs with maturity lengths of one year and under, rate changes were mixed. The rates remain quite low with top rates ranging from 0.05% to 0.20%. The 0.20% rate was listed at Vanguard. It was issued by State Bank of India. At Fidelity, the top 1-year rate was 0.15%. State Bank of India, along with five other banks issued 1-year CDs with this rate.

The most noteworthy callable CD today was a 20-year CD with a 2.00% rate that was issued by Goldman Sachs Bank USA that was listed at Vanguard.

The callable feature gives the bank the right to redeem a CD early. That can save the bank money when interest rates fall. However, the CD holder loses out if rates fall and the CD is called early. When banks offer more callable long-term CDs, it’s a sign that they think rates are heading down. When the number of callable long-term CDs decline, banks may think rates have reached a bottom and will eventually be rising.

Brokered CD rates often follow Treasury yields. Direct CD rates will often follow brokered CD rates with some lag.

Falling brokered CD rates was a trend that began in November 2018 when the top 5-year rates reached as high as 3.60%. However, that trend may be over. In 2021, long-term brokered CD rates have generally been on the rise.

Direct CD Rates and Deals

Advancial’s Jumbo Certificates remain rate leaders for terms of under one year to five years. The October Jumbo CD yields range from 0.91% for a 6-month term to 2.02% for a 5-year term. Advancial used to be an “easy membership requirement” credit union in which you could qualify for membership by joining the Connex association. That has ended. However, there may be another association that can be joined to gain Advancial membership. According to a CSR, being a member of the United States Dog Agility "technically" qualifies for Advancial membership. If this works, it may not last long. Advancial has a history of changing its mind on associations. Also, Advancial has a history of not being welcoming to new members who are interested in their CDs as opposed to their loans.

For CDs that are nationally available (without any membership limitations), the highest yield is now 1.50%. This is available at PenFed on a 7-year CD.

For CDs with maturity lengths of 5 years and under, the highest yield continues to be 1.35%, which is now offered by two credit unions. Abound is offering this yield on a 47-month CD Special and a 59-month CD. NASA FCU has a 49-month CD Special with this yield.

For banks, the top nationally-available 5-year CD rate continues to be 1.20% APY at First National Bank of America.

For the 3-year category, Hughes Federal Credit Union continues to have the top spot with a 1.21% APY on its 3-year Jumbo CD ($99k minimum). It has a 1.11% APY for a $1k minimum deposit.

Quontic Bank remains the 3-year rate leader for banks with a 1.00% APY.

For the 2-year category, Hughes Federal Credit Union’s 29-month CD continues to hold the top spot with a 1.11% APY ($99k minimum).

For the 18-month category, SkyOne Federal Credit Union’s 18-month Fall CD Special (1.00% APY) has the highest rate for the smallest minimum deposit ($1k). Consumers Credit Union continues to have a 20-month CD Special with a yield of up to 1.00%. This requires a very large $250k minimum deposit. For a $100k minimum, the rate drops to 0.90%, and for a $250 minimum, the rate drops to 0.80%. I have more details in this blog post.

For 1-year terms, Lafayette Federal Credit Union’s 1-year CD (0.80%) continues to be the rate leader for the 1-year category.

Live Oak Bank continues to be on top with the highest 1-year CD rate from a bank (0.75%).

For terms under one year, Cooperative Teachers Credit Union in Texas continues to be way ahead of all others with a 1.55% APY 3-month CD Special. It should be noted that this is a small credit union, and even though there’s an association that anyone can join to qualify for credit union membership, there’s no guarantee that this credit union will be welcoming to out-of-state applicants. Please refer to my review of this credit union and CD Special for more details.

The second highest short-term CD rate continues to be at Veridian Credit Union. Its 9-month Jumbo CD still has a 0.85% APY. A bank continues to hold third place. Luana Savings Bank’s Jumbo 6-month CD Special has a 0.75% APY.

New Category - Nationally Available Add-On CDs

In August, a new category for nationally available add-on CDs was added near the bottom of the tables. These are CDs in which you can make one or more additional deposits during the term.

The best deal continues to be the 42-month promotional add-on CD at Achieva Credit Union. For a minimum deposit of $500, the rate is 0.95%. The rate is 1.05% for a $75k minimum deposit. The CD allows unlimited additional deposits throughout the term, with maximum total add-on deposits limited to $1 million.

The best add-on CDs have long terms, small minimum deposits, no maximum initial deposits and allow add-on deposits with no limits on the number of deposits or the size of deposits. These types of add-on CDs can be a great hedge against a long low-rate environment in which rates stay low or fall even lower. Deposit the minimum, and use the add-on CD as a back-up CD when your other CDs mature. If you can’t find a higher rate when the CD matures, you can always deposit into the add-on CD.

Note, add-on CDs do have a risk that the institution could refuse to allow add-on deposits or may limit the amount of add-on deposits in contradiction to the original CD disclosure. A few credit unions in the past have failed to honor their add-on terms. I described one example in this 2014 blog post.

Savings and Money Market Accounts

Only two institutions continue to offer liquid accounts with yields of at least 1.00% without any small maximum balance, activity/checking requirements or unusual withdrawal limitations. There was a short period when a new online bank (ZYNLO Bank) was offering 1.25% APY on a new online money market account. The promo ended in March, and now only the standard rate is available (0.80% APY).

The first is the fintech M1 Finance. This is a brokerage firm and robo-advisor which also offers a checking account called M1 Spend. M1 Finance has partnered with Lincoln Savings Bank which holds the deposits and allows deposits to be FDIC insured. The Spend account has two options: basic and plus. The basic account offers no interest. The plus account offers 1% APY on all balances. The downside with M1 Plus is a $125-per-year maintenance fee that can’t be waived (they’re now waiving this fee for the first year.)

The second one is the fintech T-Mobile Money. It has partnered with a bank (Customers Bank) to hold the deposits in an FDIC-insured account. Its checking account offers 1.00% APY on all balances without any activity requirements.

Advancial Credit Union used to be in this group with its Premium Money Market account that had a 1.01% APY for a $100k minimum balance. This rate fell to 0.81% in October.

For more details about these three accounts, please refer to my latest liquid account summary.

Federal Reserve and Interest Rate Summary

The Fed and economy review is now 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.

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 October 19, 2021

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

*4thCAP (Fourth Capital TN), BHAP (Bank Hapoalim), BNYML (BNY Mellon), BoC (Bank of China), GSB (Goldman Sachs Bank), HGIS (Hingham Institution for Savings), LUASB (Luana Savings Bank), MLGB (Malaga Bank FSB), NOPB (Northpointe Bank), SAFB (Safra Bank), SBoI (State Bank of India), SYN (Synchrony Bank)

**New To Summary, as of October 19, 2021

Nationally Available Add-On CD Rates

CDs Removed Due To Low Rates Or Expired Specials

CDs Removed, No Longer Available

CDs Removed, Rate Too Low

Post Publication Edits

10/21/2021: Connex Credit Union 1.35% ($500) 15-month CD Special has been withdrawn.