bank rates

Highest CD Rates Roundup For Jan. 10

Bringing you the very best CD rates from credit unions and local banks.Good thing the Federal Reserve keeps hedging its bets on when it will raise interest rates. Because we’re now awfully close to the 6.5% unemployment threshold the nation’s central bank just abandoned.

December employment numbers released this morning show the unemployment rate dipped to 6.7% on pretty weak one-month job growth numbers.

The rate fell to its lowest since October 2008 because a lot of people gave up looking for work and are no longer counted, not because the economy is expanding more quickly.

But since the Fed reset expectations last month on when it will increase short-term rates, it has rendered the unemployment rate practically useless. That is, the rate is useless for purposes of gauging when savers might again enjoy a decent return on certificates of deposit and other protected investments.

In the end, some believe the Fed will move the goalpost once again anyway, even after announcing in December that it would hold the federal funds rate (the short-term interest rates that influence the yields savers can get) low well past the time we reach 6.5% unemployment.

The economics editor at The Washington Post says the Fed members may now consider slowing the exit from trying to stimulate the economy by revisiting the 6.5% figure altogether.

“That (rate) seemed sensible when it was introduced in December 2012, but since then the unemployment rate has fallen much more than job growth alone would justify, as Americans have left the labor force in surprisingly large numbers. Look for a heightened debate over changing the threshold in the weeks ahead,” Neil Irwin wrote.

The continuing message from those controlling interest rates is wait, wait and wait some more.

Highest CD Rates

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

  • Bogota Savings Bank in New Jersey ( pays 1.00% APY on 6-month CDs with a $1,000 minimum deposit. You have to be a New Jersey resident to buy these certificates of deposit and do so through Bogota Savings Bank’s online banking system.
  • People’s Alliance Federal Credit Union, with branches in Miami and New York (, pays 1.35% APY on 28-month CDs with a $500 minimum deposit. Credit union membership is open to residents of Miami or Hialeah, Fla., or one of more than 50 areas near New York City, predominately on Long Island.

We cut two existing deals from our list that have expired. The 48-month new-money special at Wakefield Co-operative Bank in Massachusetts has ended, as has the 14-month CD special at First Commonwealth Federal Credit Union in New Jersey and Pennsylvania.

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 (1)
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One Existing Comment
  1. jr said:
    on January 11th at 05:10 am

    They wont raise rates when the economy is fixed. They will raise it when conditions exist where they HAVE to.