bank rates

Highest CD Rates Roundup For Aug. 24

Bringing you the very best CD rates from credit unions and local banks.Ben Bernanke and the Federal Reserve haven’t done anything to further prolong savers’ interest rate agony.

Yet.

But the Fed’s rate-setting committee appears to be moving ever closer to extending its forecast for when short-term interest rates will finally, mercifully begin to increase.

Let’s reset this drama a bit first.

The Fed influences how much savers earn on their deposits by setting what’s called the federal funds rate — the interest rate that banks pay to borrow money that other banks have on deposit with the Federal Reserve.

Since December 2008, the Federal Open Market Committee (FOMC) has held that rate at 0% to 0.25% in an effort to spur lending and boost the economy.

That cheap money means there’s less demand for your deposits from banks.

You may recall that, just over a year ago, the Fed released its first prediction that it would continue to hold that rate low “at least through mid-2013.”

On Jan. 25, 2012, it extended its forecast for exceptionally low interest rates “at least through late 2014.”

Now, minutes from the latest meeting of the FOMC released this week show members are itching to hold rates down for even longer.

During its midsummer meeting, board members reached an apparent concensus that by the end of 2014, the unemployment rate would remain high and inflation would remain low.

To help stimulate the economy, one of the options under consideration is to extend the forecast. We may know more following the board’s next two-day meeting in September.

This threat means that, if you’re in the market for a certificate of deposit, things aren’t likely to get better. They may get worse.

But you can make the most of the situation by picking from the highest CD rates on our list of credit unions and local banks.

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

  • San Antonio Federal Credit Union (www.sacu.com) pays 3.35% APY on 10-year CDs, 2.85% APY on 7-year CDs and 2.25% APY on 5-year CDs with a $10,000 minimum deposit. Credit union membership is open to those who live, work or worship in designated areas west and south of San Antonio, or employees of one of the credit union’s select employer groups.
  • Cintel Financial Federal Credit Union (www.cintelfcu.org) pays 2.02% APY on 5-year CDs with a $1,000 minimum deposit. Credit union membership is open to those who live, work, worship, operate a business or attend school or regularly conduct business in the Ohio cities of Cincinnati or Norwood.
  • Sun Federal Credit Union (www.sunfcu.com) pays 2.02% APY on 54-month CDs with a $1,000 minimum deposit. This CD features an option to raise rates once during the term. Credit union membership is open to people who live, work, worship or attend school in designated areas of the Pennsylvania counties of Berks, Delaware, Montgomery and Philadelphia; and to employees, retirees, members and students of one the credit union’s sponsor groups in Ohio and Pennsylvania.
  • Workers’ Credit Union (www.wcu.com) pays 2.00% APY on 5-year CDs and 1.50% APY on 3-year CDs with a $25,000 minimum deposit. Credit union membership is open to residents of Massachusetts or southern New Hampshire. You may also qualify if you work for a company based in Massachusetts.

We cut just one deal from our list this week.

First American Credit Union in Arizona and New Mexico made major cuts to its CD rates (its 5-year CD was cut by nearly a percentage point). We removed all three terms we had been tracking from our list.

And Houston Police Federal Credit Union increased rates on two of its deals. It now pays 1.49% APY on its 15-month CD and 1.07% APY on its 6-month CD.

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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