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CD Rates Summary February 14, 2017

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CD Rates Summary February 14, 2017

Fed Chair Janet Yellen gave the “Semiannual Monetary Policy Report to the Congress” at a Senate committee meeting Tuesday morning. Based on her comments, the chance of a rate hike at the March Fed meeting has gone up. In her prepared speech, Fed Chair Yellen said:

At our upcoming meetings, the Committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.

Fed Chair Yellen also said that:

waiting too long to remove accommodation would be unwise

If the inflation and employment numbers move in the right direction in the next month, the Fed won’t have an easy time justifying another rate-hike delay. On Wednesday, the Consumer Price Index for January will be released. According to the Calculated Risk blog, “[t]he consensus is for 0.3% increase in CPI, and a 0.2% increase in core CPI.” The February employment report will be released on March 10th, right before the Fed meeting on March 14-15.

Tuesday’s news on Fed Chair Yellen’s testimony did seem to affect Treasury yields. All yields were up today, and most yields were up over the last week. The yield of the 5-year note had the largest increase (13 basis points).

As would be expected, Fed Chair Yellen’s testimony also impacted the Fed funds future contracts. According to the futures, the chance of a March rate hike increased from 8.9% to 17.7%, and the chance that we’ll have at least one hike by June increased from 64.7% to 68.0%.

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

Treasury Yields:

  • 1-month: 0.51% same as last week
  • 6-month: 0.66% up from 0.63% last week
  • 2--year: 1.25% up from 1.16% last week
  • 5--year: 1.98% up from 1.85% last week
  • 10-year: 2.47% up from 2.40% last week
  • 30-year: 3.07% up from 3.02% last week

Fed funds futures' probabilities of future rate hikes by:

  • Mar 2017 - at least one hike: 17.7% up from 8.9% last week
  • Mar 2017 - at least two hikes: 0.0% same as last week
  • Jun 2017 - at least one hike: 68.0% up from 64.7% last week
  • Jun 2017 - at least two hikes: 21.4% up from 15.3% last week
  • Dec 2017 - at least one hike: 94.7% up from 93.4% last week
  • Dec 2017 - at least two hikes: 73.0% up from 68.1% last week

Certificate of Deposit Rates

There were a few rate increases in the last two weeks that suggest that we may actually be at the start of a rising interest rate environment.

The most noteworthy rate increase was at Mountain America Credit Union (MACU) which came out with a special 5-year bump-up CD with a 2.75% APY. MACU is a credit union with easy membership requirements in that anyone can become eligible by joining an association. Please refer to this blog post for the details.

Both State Farm Bank and EverBank increased their 5-year CD rates to 2.30% APY. This is currently the top rate for 5-year CDs at internet banks. The 2.30% rate happens to also be the top rate of brokered 5-year CDs at Fidelity and Vanguard (new issue, non-callable).

There were also several short-term CD rate increases. Connexus Credit Union just increased the rates of its two special CDs. The 1-year CD rate increased 4 bps to 1.42% APY, and the 2-year CD rate increased 5 bps to 1.60% APY. I’m surprised to see these increases since Connexus recently came out with these specials in January.

Andrews Federal Credit Union increased its 1-year Jumbo CD rate to 1.45% APY. It’s a small Jumbo that just requires a $10k minimum deposit. The standard CD rate is 1.41% APY for a $1k minimum. Andrew FCU still has its top-rate 7-year CD with a 3% APY. The credit union is now the rate leader for nationally available CDs for both 1-year and 7-year terms.

Virtual Bank is now the CD rate leader for terms under one year. It had large rate increases on its 6-month CD (1.11% APY) and its 9-month CD (1.16% APY). Its 12-month CD also had a rate increase (1.34% APY).

There were some rate cuts in the last two weeks. PenFed lowered many of their CD rates in February. There was also the case of credit unions coming out with special hot rates and then ending the specials quickly. One example was Transportation FCU which was offering a special 3-year CD with a 2.51% APY, and another example was at INOVA FCU which was offering a 14-month CD with a 1.75% APY. Both specials lasted less than a week.

Melrose Credit Union made news last week when the NCUA reported that the credit union had been placed in a conservatorship with NCUA management now running the credit union “to ensure its financial stability and safe-and-sound operation.” In the last few years, Melrose has been hit hard by the financial troubles of the NYC taxi industry which has been hurt by Uber and Lyft. As I mentioned in my blog post on Melrose, the credit union will continue to operate as it has before, but its future is uncertain. Consequently, it’s very important that members ensure they have all of their deposits under the NCUA coverage limits. Melrose still has top CD rates, and its rates went up in February. I’ll keep listing them with the note about the conservatorship.

The two best nationally available CD deals continue to be Andrews Federal Credit Union’s 3% 7-year CD (see blog post) and Navy Federal Credit Union’s add-on 2% 17-month CD (see blog post.)

Finally, here’s my usual note about long-term CDs with mild early withdrawal penalties.

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. Since there aren’t a lot of rate changes, I’m now alternating these posts. This week I’ll just publish this CD summary. Next week I’ll just publish the savings/checking summary. For both summaries I’ll include the same economic overview. You can always get the latest rates for savings/checking accounts and CDs by using our rate tables. Just use the menu on top.

Yields Accurate as of February 14, 2017

Under 1-Year CD Rates

The Palladian PrivateBank1.30% Savings Account promo 6-month rate ($10K min/$500K max)See review
VirtualBank1.16% ($10k) 9-month eCD See review
VirtualBank1.11% ($10k) 6-month eCD See review
EverBank1.11% (1yr intro rate, up to $250k) 0.61% ongoing rateMMA/Checking - Account review
iGObanking1.10% 6-month iGOCD
McGraw-Hill Federal Credit Union1.05% Holiday Money Market Promo (rate guarantee through 4/30/17) See review

Noteworthy Local Deals - Under 1-Year CDs

Coastal Heritage Bank1.60% 9-month CD SpecialMassachusetts' South Shore See review
First Tennessee Bank1.50% ($50k) 9-month Money Market Savings (6 month rate guarantee)AL, AR, GA, KY, MS, NC, TN, and VA See review
Bankers Trust Company1.40% 7-27 month Special CD Rate PromoIowa See review
Geauga Savings Bank1.40% ($25k) 7-month CD Special w/checking3 northeast Ohio counties See review
Maine Highlands Credit Union1.26% 6-month IRA CertificatePiscataquis County and 12 central Maine communities See review
Mercantil Commercebank, N.A.1.20% ($10k) 7-month Smart CD South Florida and Houston, Texas area See review
Geauga Savings Bank1.20% ($25k) 7-month CD Special w/o checking3 northeast Ohio counties See review
Inspire Federal Credit Union1.20% 9-month Share CertificateBucks County, PA See review
Bellwether Community Credit Union1.20% 9-month Certificate SpecialNew Hampshire See review
Synergy Bank, SSB1.20% 10-month CD Special ($10kDallas/Fort Worth area
Direct Federal Credit Union1.20% ($100k) 8-month Jumbo CDNorfolk County, MA See review
University of Iowa Community Credit Union1.20% ($250k), 1.20% ($100k), 1.00% ($1k) 9-month CD Special48 Iowa counties, 4 Illinois counties See review
Direct Federal Credit Union1.15% 8-month CDNorfolk County, MA See review
Capital One Bank1.10% Essential Savings 6-month guaranteeCT, DC, DE, LA, MD, NJ, NY, TX, and VA See review

1-Year CD Rates

Andrews Federal Credit Union1.50% (3.00% 84-month Share Certificate closed after 1 year)Easy membership See review
UNIFY Financial Credit Union1.50% (2.00% 60-month Share Certificate closed after 1 year)Easy membership
Andrews Federal Credit Union1.45% ($10k) 12-month Jumbo Share CertificateEasy membership See review
Connexus Credit Union1.42% 12-month Share Certificate SpecialEasy membership See review
Melrose Credit Union1.41% 1-year Share CertificateCurrently operating under an NCUA conservatorship
Northwest Federal Credit Union1.41% ($250k), 1.31% ($100k) 1-year CDEasy membership See review
SafeAmerica Credit Union1.40% 14-month CD Special Easy membership See review
Colorado Federal Savings Bank1.35% 1-year CDInternet bank
State Bank of Texas1.35% ($100k) 1.25% ($25k) 12-month CD See review
Banesco USA1.35% ($250k) 1.30% ($1.5k) 12-month CD
Live Oak Bank1.35% 1-year CDInternet bank See review
EverBank1.34% 1-year Yield Pledge CD Internet bank See review
VirtualBank1.34% ($10k) 12-month eCD See review
CIT Bank1.32% 1-year Term CD See review
PenFed Credit Union1.31% 1-year Money Market CertificateEasy membership See review
Popular Direct1.30% ($10k) 1-year Popular Direct CDInternet bank
TAB Bank1.26% 12-month CD See review
CIT Bank1.26% 1-year RampUp CD See review
Sallie Mae Bank1.25% 12-month CD
Synchrony Bank1.25% 12-month CD
Ally Bank1.25% 13-month Select CD See review

Noteworthy Local Deals - 1-Year CDs

Florida Credit Union1.76% 12-month CD Special 27 Florida counties See review
Coastal Heritage Bank1.60% 12-month CD SpecialMassachusetts' South Shore See review
AmeriCU1.55% ($100k) 12-month Jumbo Partner Certificate9 Upstate New York Counties See review
General Electric Credit Union1.55% ($100k) 1-year Jumbo CDSouthwest Ohio
Seasons Federal Credit Union1.51% 14-month Featured Certificate Middlesex County, CT See review
Freedom Federal Credit Union1.50% 52-week Jumbo Certificate ($25k)Harford County, Maryland See review
Idaho Central Credit Union1.50% 12-month Promo CDIdaho
VisionBank1.50% ($100k) 14-month Winter Special CDAmes and Boone Counties, Iowa See review
Texas Exchange Bank, SSB1.46% 12-month CDTexas See review
South Shore Bank1.40% 14-month Rewards CDMassachusetts
Bellwether Community Credit Union1.40% 13-month Certificate SpecialNew Hampshire See review
American Eagle Bank of Chicago1.35% SUPER Saver 13-month Add-On CD SpecialChicago metro area

18-month CD Rates

Andrews Federal Credit Union2.02% (3.00% 84-month Share Certificate closed after 18 months)Easy membership See review
Navy Federal Credit Union2.00% ($50k max) Special 17-month Certificate w/add-on depositsEasy membership See review
Credit Union of New Jersey2.00% ($25k max) 20-month Certificate Special w/checking Easy membership See review
Veridian Credit Union1.60% 15-month Jumbo CD ($100k)Easy membership See review
UNIFY Financial Credit Union1.58% (2.00% 60-month Share Certificate closed after 18 months)Easy membership requirements
USALLIANCE Financial1.51% 15-month CD Special ($100k max)Easy membership
Veridian Credit Union1.50% 15-month CD SpecialEasy membership See review
Service Credit Union1.50% 20-month Certificate Special Limited membership See review
NuVision Federal Credit Union1.48% (2.20% 5-year Certificate ($100k) closed after 18 months)Easy membership requirements See review
PenFed Credit Union1.41% 15-month Money Market CertificateEasy membership See review
Lake Michigan Credit Union1.40% 18-month CD SpecialEasy membership
Live Oak Bank1.40% 18-month CDInternet bank See review
Popular Direct1.40% ($10k) 18-month Popular Direct CDInternet bank
Banesco USA1.40% ($250k) 1.35% ($1.5k) 18-month CD

Noteworthy Local Deals - 18-Month CDs

IntegrUS Credit Union1.71% ($50k) 15-month Share Certificate Special 11 Iowa, 2 Wisconsin, and 1 Illinois counties See review
Collins Community Credit Union1.71% ($250k), 1.66% ($100k), 1.61% ($50k) 15-month CD Special 38 eastern Iowa counties
Cedar Falls Community Credit Union1.70% 15-month Jumbo Certificate7 Iowa counties See review
Nutmeg State Financial Credit Union1.70% 20-month CD Special4 Connecticut counties and 3 towns See review
University of Iowa Community Credit Union1.70% ($250k), 1.60% ($100k), 1.50% ($1k) 19-month CD Special48 Iowa counties, 4 Illinois counties See review
Lincoln 1st Bank1.65% 18-month Variable Rate CDNorthern New Jersey See review
Farmers State Bank1.62% 15-month CD3 NE Iowa counties
Texas Exchange Bank, SSB1.61% 18-month CDTexas See review
Cedar Falls Community Credit Union1.55% 15-month Special Share Certificate7 Iowa counties See review
New Dimensions Federal Credit Union1.51% 15-month Share CertificateKennebec and Somerset Counties, Maine See review
CoVantage Credit Union1.50% 15-month CD Special19 NE Wisconsin counties and 1 Michigan UP counties See review
Walpole Co-operative Bank1.50% 15-month CD SpecialWalpole, Massachusetts area See review

2-Year CD Rates

Andrews Federal Credit Union2.27% (3.00% 84-month Share Certificate closed after 2 years)Easy membership See review
UNIFY Financial Credit Union1.76% (2.00% 60-month Share Certificate closed after 2 years)Easy membership requirements
Hughes Federal Credit Union1.71% ($99k) 29-month CD Easy membership See review
NuVision Federal Credit Union1.66% (2.20% 5-year Certificate ($100k) closed after 2 years)Easy membership requirements See review
Veridian Credit Union1.65% 25-month Jumbo CD ($100k min)Easy membership
Chevron Federal Credit Union1.65% ($250k) 2-year SuperShare 250 CD See review
Hughes Federal Credit Union1.61% ($50k) 29-month CD Easy membership See review
Connexus Credit Union1.60% 24-month Share Certificate SpecialEasy membership See review
Bellco Credit Union1.60% ($100k) 28-month Jumbo CDEasy membership See review
Melrose Credit Union1.56% 2-year Share CertificateCurrently operating under an NCUA conservatorship
VirtualBank1.56% 2-year CD See review
Nationwide Bank1.56% ($100k) 2-year CD See review
Fidelity Brokered CD1.55% 2-year non-callable CD
Partner Colorado Credit Union1.55% 24-month Celebrate CD Easy membership See review
The Vanguard Group Brokered CD1.55% 2-year non-callable CDIssued by Discover Bank
Popular Direct1.55% ($10k) 2-year Popular Direct CDInternet bank
Veridian Credit Union1.55% 25-month Special CDEasy membership
Capital One 3601.51% (2.00% 60-month CD closed after 2 years)

Noteworthy Local Deals - 2-Year CDs

IntegrUS Credit Union2.12% ($125k) 27-month Share Certificate Special 11 Iowa, 2 Wisconsin, and 1 Illinois counties See review
Collins Community Credit Union2.12% ($250k), 2.06% ($100k), 2.01% ($50k) 28-month CD Special 38 eastern Iowa counties
First Federal Credit Union2.00% 29-month CD SpecialLinn County, Iowa See review
Greater Iowa Credit Union1.81% 27-month CD Special33 Iowa counties See review
Farmers State Bank1.80% 28-month CD3 NE Iowa counties
First Service Credit Union1.75% ($50k) 24-month CertificateHarris and Waller Counties, Texas See review
Idaho Central Credit Union1.75% 24-month Promo CDIdaho
Horizon Credit Union1.71% 26-month Special CertificateWashington, 8 Idaho and 14 Montana countiesSee review
Bellwether Community Credit Union1.70% 22-month Certificate SpecialNew Hampshire See review
Texas Exchange Bank, SSB1.69% 24-month CDTexas See review
Cornhusker Bank1.66% 27-month CD SpecialLancaster County, Nebraska See review
First American International Bank1.65% ($100k) 26-month New Year CD Special New York City See review
First Financial Credit Union1.625% 24-month Regular CD California Teachers Association affiliation See review
F & A Credit Union1.61% 24-35 month Term Share Certificate City and County employees in Southern California
Advia Credit Union1.60% 22-month Promo CD 68 Michigan, 7 Wisconsin, and 1 Illinois counties See review
Cedar Falls Community Credit Union1.60% 25-month Special Share Certificate7 Iowa counties See review
Community First Bank1.60% 29-month CD Special21 western Pennsylvania counties

3-Year CD Rates

Andrews Federal Credit Union2.53% (3.00% 84-month Share Certificate closed after 3 years)Easy membership See review
Hughes Federal Credit Union1.87% ($99k), 1.76% ($50k), 1.66% ($1k) 36-month CDEasy membership
NuVision Federal Credit Union1.85% (2.20% 5-year Certificate ($100k) closed after 3 years)Easy membership requirements See review
RTN Federal Credit Union1.85% 37-month CD SpecialEasy membership See review
UNIFY Financial Credit Union1.84% (2.00% 60-month Share Certificate closed after 3 years)Easy membership requirements
Melrose Credit Union1.81% 3-year Share CertificateCurrently operating under an NCUA conservatorship
Popular Direct1.80% ($10k) 3-year Popular Direct CDInternet bank
EverBank1.80% 3-year Yield Pledge CD Internet bank
Kirtland Federal Credit Union1.79% ($200k) 36-month Share CertificateLimited membership, military relationship See review
Third Federal Savings & Loan1.75% 35-month CD Special See review
Fidelity Brokered CD1.75% 3-year non-callable CD
The Vanguard Group Brokered CD1.75% 3-year non-callable CDIssued by Discover Bank
Connexus Credit Union1.75% 3-year CD w/active chk
SafeAmerica Credit Union1.71% 30-month CD Special Easy membership See review
USALLIANCE Financial1.71% 35-month CD SpecialEasy membership
Synchrony Bank1.70% ($100k) 36-month CD Internet bank See review
Veridian Credit Union1.70% ($100k) 39-month Jumbo CD Easy membership See review
Capital One 3601.68% (2.00% 60-month CD closed after 3 years)

Noteworthy Local Deals - 3-Year CDs

Institution for Savings2.25% 36-month CDMassachusetts' North Shore See review
CFCU Community Credit Union2.20% ($100k), 1.85% ($25k), 1.60% ($10k) 36-month Thanks A Billion Certificate Special Tompkins and Cortland Counties, NY See review
1st Gateway Credit Union2.05% 40-month CD SpecialEastern Iowa, Western Illinois
Haverhill Bank2.02% 36-month CDNE Massachusetts and nearby New Hampshire See review
Perpetual Federal Savings Bank2.02% 36-month CDCentral Ohio See review
Farmers State Bank2.02% 39-month CD3 NE Iowa counties See review
VITAL Federal Credit Union2.01% 36-month CDSpartanburg County, South Carolina See review
Vibrant Credit Union2.00% 33-month CD SpecialIowa, Illinois Quad Cities area
Fairport Savings Bank2.00% 35-month CD SpecialNew York State See review
Financial One Credit Union2.00% 40-month Share Certificate SpecialAnoka County, MN; northeast Minneapolis area See review
Gulf Coast Credit Union1.95% 36-month Share CertificateJim, Nueces, and San Patricio Counties, TX
First Service Credit Union1.95% ($50k) 36-month CertificateHarris and Waller Counties, Texas See review
Glass City Federal Credit Union1.91% 40-month CD Special4 Northwestern Ohio counties See review
Mid-Minnesota Federal Credit Union1.90% 36-month Fast Forward Time Share9 Minnesota counties See review

4-Year CD Rates

Andrews Federal Credit Union2.65% (3.00% 84-month Share Certificate closed after 4 years)Easy membership See review
Fidelity Brokered CD2.10% 4-year non-callable CD
Melrose Credit Union2.07% 4-year Share CertificateCurrently operating under an NCUA conservatorship
Kirtland Federal Credit Union2.04% ($200k) 48-month Share CertificateLimited membership, military relationship See review
Bay State Savings Bank2.00% 48-month CD
Latino Credit Union2.00% 48-month CD Easy membership See review
NASA Federal Credit Union2.00% 49-month CD Special
NuVision Federal Credit Union1.94% (2.20% 5-year Certificate ($100k) closed after 4 years)Easy membership requirements See review
UNIFY Financial Credit Union1.84% (2.00% 60-month Share Certificate closed after 4 years)Easy membership requirements
EverBank1.81% 4-year Yield Pledge CDInternet bank See review
SelfHelp Credit Union1.81% 48-month CD
Popular Direct1.81% ($10k) 4-year Popular Direct CDInternet bank
Capital One 3601.80% 48-month CD
Virtual Bank1.78% 4-year eCD Internet bank
PenFed Credit Union1.76% 4-year Money Market CertificateEasy membership See review
Capital One 3601.76% (2.00% 60-month CD closed after 4 years)

Noteworthy Local Deals - 4-Year CDs

Institution for Savings2.50% 48-month CDMassachusetts' North Shore See review
Institution for Savings2.50% ($250k) 4-year Money Market CD (also requires $250K in MMA)Parts of Massachusetts
Tech Credit Union2.43% ($100k) 50-month Jumbo CompoundCD4 NW Indiana and 2 NE Illinois counties See review
Jefferson Financial Credit Union2.38% ($10k) 48-month Share Certificate4 Louisiana Parishes See review
Deere Employees Credit Union2.30% 48-month Share CertificateEmployees and retirees of Deere & Company See review
Tech Credit Union2.27% 50-month Premium Compound CD4 NW Indiana and 2 NE Illinois counties See review
First Service Credit Union2.20% ($50k) 48-month CertificateHarris and Waller Counties, Texas See review
Pelican State Credit Union2.19% 48-month CDRapides Parish, Louisiana
East Boston Savings Bank2.16% 48-month CD SpecialBoston metro area See review
Beaumont Community Credit Union2.12% 48-month Share CertificateJefferson County, TX
Achieva Credit Union2.10% ($75k) 48-month IRA Plus 10 Florida counties See review
Perpetual Federal Savings Bank2.07% 48-month CDCentral Ohio See review
Security Savings Bank2.06% 48-month CDTri-state area of SD, IA, and MN
Member One Credit Union2.05% 48-month CDVirginia

5-Year CD Rates

Mountain America Credit Union2.75% 5-year Bump Term Deposit SpecialEasy membership See review
Andrews Federal Credit Union2.73% (3.00% 84-month Share Certificate closed after 5 years)Easy membership See review
SafeAmerica Credit Union2.50% 60-month CDEasy membership See review
Melrose Credit Union2.42% 5-year Share CertificateCurrently operating under an NCUA conservatorship
United States Senate Federal Credit Union2.40% ($60k), 2.34% ($20k), 2.28% ($1k) 60-month CD Easy membership
State Bank of India (IL)2.32% 5-year CD
EverBank2.30% 5-year Yield Pledge CD Internet bank
State Farm Bank2.30% 5-year CDInternet bank See review
Fidelity Brokered CD2.30% 5-year non-callable CD
The Vanguard Group Brokered CD2.30% 5-year non-callable CDIssued by Discover Bank
Popular Direct2.28% ($10k) 5-year Popular Direct CDInternet bank
Kirtland Federal Credit Union2.27% ($200k) 60-month Share CertificateLimited membership, military relationship See review
Clark County Credit Union2.27% 60-month CDEasy membership See review
NuVision Federal Credit Union2.20% 5-year Certificate ($100k)Easy membership requirements See review
PenFed Credit Union2.17% -year Money Market CertificateEasy membership See review
Signal Financial Credit Union2.16% 60-month Share CertificateEasy membership requirements See review
Chevron Federal Credit Union2.15% ($250k) 5-year SuperShare 250 CD See review

Noteworthy Local Deals - 5-Year CDs

General Electric Credit Union2.75% 5-year CDSouthwest Ohio
Arbor Financial Credit Union2.65% 62-month CD Special21 southwest Michigan counties See review
Firelands Federal Credit Union2.60% 60-month Share Certificate5 north-central Ohio counties See review
Jefferson Financial Credit Union2.58% ($10k) 60-month Share Certificate4 Louisiana Parishes See review
Achieva Credit Union2.55% ($75k) 60-month IRA Plus 10 Florida counties See review
University Federal Credit Union2.50% 60-month CDSalt Lake County, Utah See review
Bank of Utica2.50% 5-year CDUtica, NY area
Cyprus Credit Union2.50% 60-month CD and Dream CD Utah See review
Utah Community Credit Union2.50% 60-month Regular CDJuan, Sanpete, Salt Lake, and Wasatch Counties, Utah See review
First Service Credit Union2.45% ($50k) 60-month CertificateHarris and Waller Counties, Texas See review
American United Federal Credit Union2.40% 60-month CD (includes 0.10% rate increase)Salt Lake and Tooele Counties, Utah See review
Deere Employees Credit Union2.35% 60-month Share CertificateEmployees and retirees of Deere & Company See review
IH Mississippi Valley Credit Union2.32% 60-month CD Quad Cities area, IL and IA
Granite Credit Union2.32% 60-month CertificateSalt Lake County, Utah See review
TruMark Financial Credit Union2.30% ($75k) 60-month Jumbo CD5 Southeastern Pennsylvania counties See review

Over 5-Year CD Rates

Andrews Federal Credit Union3.00% 84-month Share Certificate See review
Fidelity Brokered CD2.80% 10-year non-callable CD
The Vanguard Group Brokered CD2.80% 10-year non-callable CDIssued by Discover Bank
Apple Federal Credit Union2.60% 120-month CD
Fidelity Brokered CD2.50% 7-year non-callable CD
The Vanguard Group Brokered CD2.50% 7-year non-callable CDIssued by Discover Bank
Andrews Federal Credit Union2.25% 72-month IRA Certificate See review
Elements Financial2.25% 10-year CDEasy membership
Apple Federal Credit Union2.25% 84-month CD
Northrop Grumman Federal Credit Union2.24% ($40k) 84-month Bonus Term CDEasy membership
PenFed Credit Union2.22% 7-year Money Market CertificateEasy membership See review
Discover Bank2.20% 10-year CD
Elements Financial2.10% 7-year CDEasy membership
Navy Federal Credit Union2.05% ($100k), 2.00% ($20k), 1.95% ($1k) 7-year CDEasy membership See review

Noteworthy Local Deals - Over 5-year CDs

Black Hills Federal Credit Union2.70% ($200k) 7-8 year Ultimate CD (w/checking)South Dakota See review
Sharefax Credit Union2.68% ($15k) 80-month Gold Share CertificateSouthwestern Ohio
San Antonio Federal Credit Union2.60% 10-year Share CertificateSan Antonio, TX
MidFirst Direct2.50% 84-month CDAZ, AR, CA, CO, FL, MO, NH, NV, NY, OK, TX, WY See review
Financial Center First Credit Union2.50% 84-month Share Certificate10 central Indiana Counties (greater Indianapolis)
Island Federal Credit Union2.50% 84-month CertificateNassau and Suffolk Counties, NY See review
Wright-Patt Credit Union2.40%($100k) 72-month CD 10 Ohio counties See review
Advia Credit Union2.30% 70-month Promo CD 68 Michigan, 7 Wisconsin, and 1 Illinois counties See review
First Republic Bank2.25% ($10k) 6-year CDCA, CT, FL, MA, NY, OR See review
First National Bank (PA)2.25% 10-year CD Special ($10k)PA, MD, OH, WV
PeoplesChoice Credit Union2.22% 84-month CDYork and Cumberland Counties, Maine
Gesa Credit Union2.20% 7-year CDWashington State

CDs Removed Due To Low Rates Or Expired Specials

CDs Removed, No Longer Available - Nationwide

Transportation Federal Credit Union2.51% ($100k max) 3-year Special Share CertificateEasy membership See review
Mountain America Credit Union2.30% 60-month CD

CDs Removed, No Longer Available - Local

Family First Credit Union1.25% Money Market Platinum (6 month rate guarantee)Monroe County and portions of Wayne County, NY See review
People's Credit Union1.15% 10-month CD SpecialRhode Island and nearby areas See review
Ascentra Credit Union1.70% 17-month CD Special 13 Iowa and 8 Illinois counties See review
Bent River Community Credit Union2.20% ($200k) 38-month CD Special See review
United Federal Credit Union2.20% 45-month CD SpecialAR, IN, MI, NV, NC, OH, OK See review

CDs Removed, Rate Too Low - National

PenFed Credit Union1.61% 3-year Money Market CertificateEasy membership See review
RiverLand Federal Credit Union2.10% 60-month CertificateEasy membership requirements See review
Wings Financial Credit Union2.07% ($90k) 2.02% ($10k) 5-year Share CertificateSee review

CDs Removed, Rate Too Low - Local

First American International Bank1.20% ($100k) 13-month New Year CD Special New York City See review
Norwood Bank1.20% 16-month CD SpecialMassachusetts See review
First American International Bank1.40% ($100k) 19-month New Year CD Special New York City See review
IH Mississippi Valley Credit Union1.56% 24-month CD Quad Cities area, IL and IA
Achieva Credit Union1.55% ($75k) 24-month IRA 10 Florida counties See review
Dayton Firefighters Credit Union2.28% 60-month Money Market Share CertificateGreen, Miami, Montgomery Counties, Ohio See review
Founders Federal Credit Union2.27% 60-month Share CertificateSouth Carolina
Inspire Federal Credit Union2.27% 60-month Share CertificateBucks County, PA See review
MidFirst Direct2.25% 60-month CDAZ,AR,CA,CO,FL,MO,NH,NV,NY,OK,TX,WY See review
Northwoods Credit Union2.12% ($100k+) 60-month Certificate Carlton, Pine, and St. Louis Counties, MN See review

Post Publication Edits

2/16/17: Colorado Federal Savings Bank 1-year CD rate raised.

2/17/17: Norwood Bank 16-month CD Special removed following rate drop.

2/17/17: Tech Credit Union 50-month Premium Compound CD rate lowered.

Comments
hank
hank   |     |   Comment #1
ken:
US Senate FCU has one of the higher 5 year rates at 2.4 so why do you not include it in your cd list?
  |     |   Comment #2
Since Monday, 2/13/2017, the top rate of brokered 3-year CDs at Fidelity and Vanguard (new issue, non-callable) has been 1.80%.
Bozo
Bozo   |     |   Comment #3
From time-to-time, I bring up the subject of EWPs and IRA CDs. Given the popularity of this blog, and given the fact that many new folks find this blog all the time, my thoughts might be useful. To old hands at DA, who know all about what I am about to repeat, my apologies. Feel free to disregard.

Background. When you buy an IRA CD and want to withdraw some or all of the principal prior to maturity, you are generally slapped with an EWP, unless you are doing so to satisfy a Required Minimum Distribution, or RMD. For folks younger than 70 1/2 in the year of withdrawal, the "general rule" is that you get slapped with the EWP.

Exception. A few financial institutions carve out an exception to the "general rule" for folks over 59 1/2 but not yet 70 1/2. At those institutions (PenFed, StateFarmBank, NWFCU and Patelco come to mind), folks over 59 1/2 with IRA CDs may make "partial" withdrawals from IRA CDs with no EWP.

Importance. The ability to make a partial withdrawal from an IRA CD without an EWP enables a person nearing or at the age of 59 1/2 to take advantage of longer-term IRA CDs, with higher rates, knowing the funds may be tapped without penalty, either to satisfy current spending requirements, or to indirectly rollover the funds to higher-yielding IRA CDs (once per 365 days).

How to determine if this exists? With the four examples above (PenFed, StateFarmBank, NWFCU and Patelco), the "carve out" appears in the respective Truth-in-Savings or Member Agreements. It generally appears in the "exceptions" in the EWP verbiage, but it might be buried in a separate IRA Disclosure, and incorporated by reference. If you can't find a clear document on-line, call the financial institution, ask if there is such a carve-out, and be persistent. Many CSRs may not be schooled in the exception, even if it exists. Get the disclosures for yourself.
Bozo
Bozo   |     |   Comment #4
Moving right along, why might a person want to explore the "indirect" rollover option? Simple. StateFarmBank, for one, does not consider a rollover "to" another IRA CD a "normal distribution" which qualifies for the EWP waiver. Stated another way, you can't submit a custodian-to-custodian transfer request to SFB for part of your IRA CD and expect them to waive the EWP. Ain't gonna happen. But, you can request a check. It will be mailed within a week to ten days (I've done it twice). What you do with that check is your business. If you rollover to another IRA account within 60 days, all you note on your Form 1040, line 15, is the rollover and a taxable amount of zero. You can do this once every 365 days.

Is this "gaming" the system? Well, sure, to a degree. On the other hand, financial institutions offering this carve-out do so (I assume) as a result of a cost-benefit analysis. We here at DA are entitled to perform cost-benefit analyses on our own.
decades
decades   |     |   Comment #6
great info Bozo . do you know if Andrews allows this ?
Bozo
Bozo   |     |   Comment #9
Decades, I do not know if Andrews offers this exception.
jimbeau
jimbeau   |     |   Comment #5
The CPI-U inflation index that includes food and energy went up 0.6% in January. That's about twice what was expected. After years of yielding a lower return versus 5 year CD's, 5 year TIPS might finally be making a comeback. The trailing 12 month inflation rate has jumped to 2.5% (it's been rising steadily since last July).

That 2.5% inflation rate is running ahead of most of the best CD's currently available (the exception being MACU). The best 5 year CD rates out there are running about 2.3% (even at Fidelity). However, 5 year TIPS still have a negative YTM of approximately -0.15. This lowers the TIPS inflation yield to 2.35%. That's basically a wash against the 5 year CDs. Of course, that 5 year CDs rate is locked into place (unless you want to eat the EWP).

The 5 year TIPS with it's variable inflation factor is starting to look attractive again (unless deflation returns). So, I may have to start putting aside some funds for the April TIPS auction. I know that this isn't a TIPS forum but you've got to consider all of your options when trying to preserve principal in retirement. If you haven't been getting at least a 2.5% yield on your CD's over the last 12 months, you're losing purchasing power on whatever you haven't spent.

I was just about to purchase more CDs when I read an article about the jump in the inflation rate. Now, that 2.75% 5 year CD at MACU doesn't look so appealing. Since I'm well past 59 1/2, I may just hedge my bets a bit and settle for 2.12% in a 5 year IRA CD that I'll be able to dump anytime without an EWP. At least that's better than having it sit in an IRA savings account getting 1.0%.
decades
decades   |     |   Comment #7
great info jimbeau....I guess as CD investors we are at best running in place ....
Rickny
Rickny   |     |   Comment #8
If you believe government inflation numbers or how they are calculated. I do see the weight and size of many items such as food keep shrinking but not the price which is a hidden price increase.
jimbeau
jimbeau   |     |   Comment #10
That's a common myth. The BLS does make adjustments for size changes and adjusts the prices accordingly. The following is from the BLS site.

"The recorded information is sent to the national office of BLS, where commodity specialists who have detailed knowledge about the particular goods or services priced review the data. These specialists check the data for accuracy and consistency and make any necessary corrections or adjustments, which can range from an adjustment for a change in the size or quantity of a packaged item to more complex adjustments based upon statistical analysis of the value of an item's features or quality. Thus, commodity specialists strive to prevent changes in the quality of items from affecting the CPI's measurement of price change."
jimbeau
jimbeau   |     |   Comment #11
Up until December, it was easy to beat the trailing 12 month inflation rate with a 5 year CD yielding 2%. In fact last July when it was 0.8%, you could beat inflation with a 1% saving account at Ally.

At this stage in the game, I'd be happy to just be running in place. However, over the last six months, the FED and financial institutions interest rate hikes have not kept up with the pace of inflation.

Traditionally, a measly 3 month T-Bill would beat inflation (currently yielding 0.52%). Nowadays, it's taking a 10 year nominal Treasury bond to come close (currently yielding 2.45%). Talk about interest rate risk!

The CPI-U measurement at 2.5% is called "headline inflation" and includes gas and food prices. It's been running from a low of 0.8% to the curren high of 2.5% over the last 12 months.

Due to the collapse of oil prices over the last couple of years, this has caused deflation. Now oil prices are headed the other way (up 20% from a year ago). So, inflation is on the rise.

The other measure of the CPI-U excludes food and energy prices simple because they are so volatile. It's called "core inflation". It's been running between 2.1% and 2.3% over the last year.

It's the one that the FED uses to make a decision on interest rates. From the above numbers you can see why. Food and energy prices can have high variances over a 12 month period.

If you look at just core inflation, the inflation situation doesn't look as bad as it appears with headline inflation. But if food and energy prices rise in tandem, look out!
Bozo
Bozo   |     |   Comment #12
Jimbeau, I've always advocated that folks do their own calculation of what I somewhat tongue-in-cheek call the CPI-P, or one's personal rate of inflation. The CPI-U is a good start, but many demographics have eccentricities. For example, real estate prices and rental increases in certain areas of the country easily exceed the CPI-U. On the other hand, folks in those areas who own their homes (and who may be entitled to caps on property tax increases (think Prop 13 in CA)), may actually have to adjust downward. The CPI-U basket may well include items irrelevant to one's particular situation.