bank rates

Highest CD Rates Roundup For Dec. 6

Bringing you the very best CD rates from credit unions and local banks.We’re still so giddy over PenFed breaking the 3% barrier on CD rates, we wanted to take a closer look at how unusual this deal is.

Let’s just get this out of the way: It hasn’t been a pretty two years.

On our CD Rates Leaderboard, where we track the top nationally available bank deals, we last saw 3% on May 25, 2011 – or 927 days and counting.

The top rate offered by banks stands at 2.11% APY, a rate we’d be celebrating today were it not for Pentagon Federal Credit Union. EverBank, the Jacksonville, Fla.-based bank with 14 branches, this week began offering this 5-year rate with a $1,500 deposit (www.everbank.com).

The EverBank offering represents the highest nationally available 5-year bank CD since Dec. 30, 2011, or 708 days.

But this milestone on the path to recovery is plainly overshadowed by PenFed’s 3.04% APY. We should note here that we don’t include credit unions on our rankings, which are limited to banks that impose no restrictions on who can buy their certificates of deposit.

We last reported on a credit union with a 3%, 60-month CD available everywhere in July 2011. And the last nationally available 3% CD in any term expired in mid-September 2011, about a month after the Federal Reserve announced it would hold interest rates at record lows “at least through mid-2013.”

If only the Fed had stuck with that timeline.

Back to that last bank CD at 3%. That offer came from Discover Bank, which paid 3% on 10-year CDs in the fall of 2011. That’s a long, long time to be tied up in a certificate of deposit.

Thanks to PenFed, we don’t have to worry about reaching that far to grab a decent – if still not historically great – rate.

Aside from the PenFed offers, this week, we added one other deal to our list of the highest CD rates from credit unions and local banks:

  • Icon Federal Credit Union in Oregon and Idaho (www.iconcreditunion.org) pays 2.08% for 60-month and 1.38% APY for 24-month CDs with a $500 minimum deposit. The 60-month CD has a bump-up feature, which is why we include this offer even though it doesn’t beat the term leader. Credit union membership is available to those who live or work in Idaho’s Ada, Canyon, Kootenai or Shoshone counties, or in Union or Wallowa counties in Oregon.

As for rate changes on our list, Regal Financial Bank in Seattle extended its 1.11% APY, 11-month CD offer until Dec. 31. It was set to expire Nov. 29.

Gulf Coast Federal Credit Union in Texas reduced its 24-month CD rate from 1.85% APY to 1.75% APY.

And we removed First Community Federal Credit Union in Illinois, Michigan and Wisconsin after it cut 60-month CD rates.

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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Comments (2)
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  1. rbrooks said:
    on December 9th at 10:46 pm

    numerous international banks are offering 4.5% to as high as 18% for 30 day cd’s.

    why would you go with a lousy 3% for 5 years?

  2. Ron Iverson said:
    on January 27th at 06:32 pm

    Which international banks offer CD rates over 4% APY?