bank rates

Highest CD Rates Roundup For Aug. 2

Bringing you the very best CD rates from credit unions and local banks.With the recent increase in long-term CD rates from a number of banks, I thought it time to once again take a look at the best and worst cities to buy a certificate of deposit.

When last I looked at this data at the end of May, Cincinnati had the highest average 5-year CD rate at 1.07% APY, while Pittsburgh had the lowest at 0.55% APY.

Has the uptick at a few banks helped either city’s average?

Before we look at the winners and losers in our 25-city exam, I should point out that although the best nationally available bank deal on our CD Rates Leaderboard increased by more than a quarter of a percentage point between mid-June and the end of July, the national average has held near a record low.

The average 5-year CD pays just 0.77% APY, according to our latest survey of banks and thrifts. That ties the record low first set at the end of May.

Knowing that, it should come as little surprise there’s been little movement among individual cities. Some 19 of the 25 largest cities beat the national average, a slight improvement over May; three cities average a 5-year rate above 1%, also a slight improvement.

No average comes close to the top deal, however, of 2.06% APY.

Here are the cities with the best average rates, with the May ranking in parenthesis:

  • Cincinnati – 1.07% APY (1)
  • Tampa – 1.03% APY (7-tie)
  • Houston – 1.02% APY (2)
  • Minneapolis – 0.91% APY (4)
  • Phoenix – 0.91% APY (10)

And the worst:

  • Detroit – 0.53% APY (2)
  • San Francisco – 0.62% APY (4)
  • Pittsburgh – 0.68% APY (1)
  • Chicago – 0.73% APY (5)
  • Milwaukee – 0.75% APY (11)

This week we added one deal to our list of the highest CD rates from credit unions and local banks:

  • Industrial Credit Union ( in Boston offers top CD rates in four terms with a $1,000 minimum deposit: 1.75% APY on 48-month CDs, 1.55% APY on 36-month CDs, 1.30% APY on 24-month CDs and 0.90% APY on 6-month CDs. Credit union membership is free and open to anyone who works or lives in the greater Boston area.

Good news: No rate cuts this week.

We do have one rate increase to report. First Republic Bank, which operates on the East and West coasts, increased its 72-month CD from 2.15% APY to 2.25% APY.

You’ll find 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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