bank rates

Highest CD Rates Roundup For Aug. 17

Bringing you the very best CD rates from credit unions and local banks.CD rates are at record lows, but the situation could be worse for savers.

Here’s how.

If inflation was running at its historic average of 3.4%, even the best 5-year CD would be a losing proposition, as the loss in purchasing power eats away at yields.

But the Consumer Price Index, a common inflation measure, is up just 1.4% over the past year, according to data released this week by the Bureau of Labor Statistics.

That means if you purchased the best nationally available certificate of deposit last August — which paid 2.5% APY — you’re beating inflation.

Even if you buy today’s top 5-year certificate on our CD Rates Leaderboard, you’d still be in good shape. You’d break even on 3-year CDs and lose money with any shorter term.

This is perhaps the best we can hope for in this terrible interest rate environment.

Of course, you can do even better with many of the deals on our list of the highest CD rates at credit unions and local banks.

The top nationally available 5-year credit union CD pays 2.02%. Twenty local deals on our list pay a higher rate, topping out at 2.52% APY.

This week we added two local credit union deals to our list:

  • Consumers Credit Union (www.consumerscu.org) pays 2.02% APY on 5-year CDs with a $25,000 minimum deposit. This Michigan credit union had offered a fantastic 60-month special that paid 2.50% APY, but the deal expired earlier this week. Credit union membership is open to people who live, work, worship or are enrolled in post-high school education in Allegan, Barry, Berrien, Branch, Calhoun, Cass, Kalamazoo, Kent, Ottawa, St. Joseph or Van Buren counties.
  • HEW Federal Credit Union (www.hewfcu.com) pays 2.02% APY on 5-year CDs with a $2,000 minimum deposit. Credit union membership is open to people who live, work, worship, attend school or regularly conduct business in Washington, D.C.; the city of Alexandria and Arlington and Fairfax counties in Virginia; and most areas of Prince George’s and Montgomery counties in Maryland.

There were just two cuts on our list this week, although one of them was fairly significant.

California’s Patelco Credit Union had offered the best long-term deal on our list that was available to all savers with its 7-year, 2.50% APY CD. It cut that offer by half a percentage point and now pays 2.00% APY.

And GECU in Texas once again cut rates. It’s been clipping its rates fairly frequently lately. This local credit union now pays 2.10% APY on 60-month CDs and 1.60% APY on 36-month CDs.

You’ll find all the top-paying deals clearly marked on our highest CD rates page, showing where they are available, with a quick link back to the original post, which includes more information on the institution and its requirements.

We’ll update this page weekly, so you’ll always know what great deals are out there from credit unions and local banks.

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  1. Earl said:
    on August 18th at 12:16 am

    You don’t really believe that crap about the inflation rate is 1.4% do you? If you do, I have a bridge in New York that I will sell cheap.