It’s not all bad news.
At Bankaholic, we track the top certificates of deposit in the country daily, so we have lots of data that shows what’s happened over the course of a year. We put that data to use most prominently on our CD Rates Leaderboard, which tracks the top nationally available bank deals.
So, we can easily look back and say, for example, the top 5-year bank CD paid 2.75% APY in January 2011 and 2.00% APY a year later. That 27% decline was a huge fall — the worst, in fact, among the terms we track.
As for 2012?
The chart below shows that we finally saw some stability in a couple of terms. Both the top 6- and 24-month CDs are poised to end the year at roughly the same place they started.
Unfortunately, we still saw double-digit percentage drops in 3-, 36- and 60-month CD rates.
|TERM||Jan. 2011 Rate||Jan. 2012 Rate||% Change||Dec. 2012 Rate||% Change|
|3-month CDs||0.95% APY||0.80% APY||-16%||0.65% APY||-19%|
|6-month CDs||1.11% APY||0.88% APY||-21%||0.90% APY||+2%|
|12-month CDs||1.41% APY||1.15% APY||-18%||1.05% APY||-9%|
|24-month CDs||1.65% APY||1.30% APY||-21%||1.30% APY||No change|
|36-month CDs||2.00% APY||1.65% APY||-18%||1.40% APY||-15%|
|60-month CDs||2.75% APY||2.00% APY||-27%||1.80% APY||-10%|
The Federal Reserve has all but guaranteed low interest rates for a couple of more years, so there’s no reason to be optimistic about CD rates in 2013.
The stability in a couple of these terms could simply mean we’ve finally hit bottom, although many — including us — suggested as much at the end of last year.
We’ll take what we can get, though.
As for the highest CD rates from credit unions and local banks, we saw some pretty big declines in the top deals here since we started this list in April.
Then, the top nationally available credit union deal paid 2.27% APY. Now, the best deal pays 2.02% APY.
The best 5-year CD from a local institution paid 2.75% APY; now it’s 2.27% APY.
This week, we added one deal to our list:
- American Heritage Federal Credit Union (www.amhfcu.org) pays 1.91% APY on 60-month CDs with a $1,000 minimum deposit. Membership to this Philadelphia-based credit union is available to anyone by first donating $15 to the Kids-N-Hope Foundation, which is the credit union’s charitable organization.
Otherwise, it’s been a slow week. We found no changes to the deals on our list.
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.