bank rates

Highest CD Rates Roundup For Feb. 28

Bringing you the very best CD rates from credit unions and local banks.We now know a bit more about how popular the recent Pentagon Federal Credit Union CD offer was.

As I mentioned in January, the Alexandria, Va.-based credit union noted that it added more than $700 million in CD deposits in the last three months of 2013.

But now, thanks to a financial condition report filed with the National Credit Union Administration, the federal regulator that manages deposit insurance for credit unions, we have a better idea of which terms savers favored.

PenFed, the country’s third-largest credit union, in December shocked us all by boosting 60-month CD rates to 3.04% APY. It also paid 2.22% APY on 48-month CDs, 2.02% APY on 36-month CDs and 1.41% APY on 2-year CDs – all well above what the competition offered.

But the year-end report to the NCUA shows:

  • The total number of CD accounts increased by nearly 23,000 – from 211,361 to 234,162 (total accounts had been flat compared with the previous quarter).
  • The amount of money invested in CDs of 1-3 years in term length increased by $364 million – from $2.27 billion to $2.64 billion.
  • The amount of money invested in CDs of 3 years or longer increased by a whopping $576 million – from $1.29 billion to $1.87 billion.

Even with these huge numbers, we still don’t know the full impact of these rates on savers’ behavior. That’s because PenFed held the rate for all savers through January, which isn’t reflected in this report. We still won’t know how much more money savers invested in the first month of 2014 until later this spring.

We can conclude, though, that PenFed demonstrated with these rates we haven’t seen in years that there’s a huge hunger for decent yields among Americans interested in safe investments.

I am curious how many of our readers took advantage of these rates. Take our poll below.

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Highest CD Rates

This week, we added two deals to our list of the highest CD rates from credit unions and local banks:

  • MoutainOne Bank (www.mountainone.com) in Massachusetts pays 1.30% APY with a $1,300 minimum deposit on 13-month CDs. You have to be a resident of New England or New York to purchase these certificates of deposit and do so in person at a branch or through the mail.
  • Valley Green Bank (www.valleygreenbank.com) in Philadelphia pays 1.50% APY on 24-month CDs and 1.75% APY on 36-month CDs, both with a $500 minimum deposit. You have to be a Pennsylvania resident to purchase these certificates of deposit and do so in person at a branch.

We saw two changes to existing deals on our list.

San Antonio Federal Credit Union increased its 10-year CD rate from 2.70% APY to 2.80% APY and its 84-month CD rate from 2.20% APY to 2.30% APY with a $1,000 minimum deposit. Meanwhile, Spokane Teachers Credit Union cut its 30-month CD rate from 2.02% APY to 1.76% 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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  1. Gary said:
    on March 1st at 02:58 pm

    and SACU pays 2.33% for $10,000 or more.