bank rates

Highest CD Rates Roundup For Dec. 21

Bringing you the very best CD rates from credit unions and local banks.Which CD term has held up the best in this terrible interest rate environment?

Not surprisingly, it’s longer-term certificates of deposit that have lost less of their value over the past five years, according to research from Market Rates Insight, a California-based pricing consultant to financial institutions.

Between July 2007 and October 2012, 5-year CDs lost 80% of their yield value, making it the best (or least worst) performer among deposit products.

As you might imagine, short-term CDs fared the worst.

Three-month CDs lost 97% of their value, and 6-month CDs lost 96%.

Our own research shows that between those same dates, the average national yield on 5-year CDs fell from 4.03% APY to 0.95% APY.

Three-month CDs fell from 2.89% APY to 0.13% APY ; 6-month CDs fell from 3.58% APY to 0.18% APY.

This shows that short-term CDs are practically worthless today, which is why we rarely feature them on Bankaholic.

If you’re in the market for certificates of deposit, your best bet remains the 60-month CD.

Our list of highest CD rates from credit unions and local banks currently includes 95 deals, the best of which pays 3.00% APY.

Included on that list are three nationally available deals that pay 2% APY or better.

This week, we added two deals to our list:

  • Alliance Blackstone Valley Federal Credit Union (www.abvfcu.com) in Rhode Island pays 2% APY on 48-month CDs and 1.50% APY on 36-month CDs with a $2,500 minimum deposit. Membership is available to residents of several communities in Providence County.
  • Arizona Federal Credit Union (www.arizonafederal.org) pays 2.00% APY on 60-month CDs with a $500 minimum deposit. Membership is available to residents of Maricopa or Pinal counties.

We had few rate changes on the list this week.

LOMTO Federal Credit Union in New York increased rates in three terms. It pays 1.55% APY on 36-month CDs, 1.40% APY on 24-month CDs and 1.20% APY on 12-month CDs.

We removed just one bank from our list: First Bexley Bank in Ohio, which made a significant cut to its 60-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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