bank rates

Highest CD Rates Roundup For Jan. 31

Bringing you the very best CD rates from credit unions and local banks.Since we’ve been writing so much about how savers are fleeing low-rate CDs, I wondered just how attractive PenFed’s 3.04% APY CD rate offer has been.

Well, we’re beginning to see some numbers, and they’re pretty staggering.

Pentagon Federal Credit Union recently posted its year-end financials on its website. The Alexandria, Va.-based credit union ended the year with more than $6.5 billion in share certificate deposits. Share certificates are what PenFed calls its CDs.

Unfortunately, the year-end report doesn’t break down deposits by term. But we can make some assumptions by comparing this figure to the latest financial condition report PenFed filed with the National Credit Union Administration, the federal regulator that manages deposit insurance for credit unions.

As of Sept. 30, 2013, PenFed had about $5.7 billion in share certificate deposits. That means in the last three months of the year, the third-largest credit union in the country added more than $700 million in CD deposits.

Since the NCUA reports (sort of) break down deposits by term, when the fourth quarter report comes out, we’ll be able to see approximately where the growth came from. The financial statements show deposits in accounts of less than a year, one to three years and greater than three years.

As of September 2013, PenFed had a bit less than $1.3 billion in CD deposits for terms longer than three years. It’s a good bet we’ll see big growth in this number.

Also, keep in mind, this year-end data only accounts for one of the two months in which PenFed has offered this rate. So we won’t know until later this spring just how much money flowed into this credit union over the last couple of months.

One more nugget of data: CD deposits at PenFed fell in each of the first three quarters of 2013, but the credit union largely has avoided the huge dip in CD deposits we’ve seen nationally.

chart showing total amount of money in CDs at PenFed.

Highest CD Rates

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

  • Gesa Credit Union in Washington State ( pays 1.14% APY for 14-month CDs, 1.64% APY for 30-month CDs, 2.14% APY for 60-month CDs and 2.34% APY for 84-month CDs with a $500 minimum deposit. Membership is open to all Washington residents.
  • Haverhill Bank in Massachusetts and New Hampshire ( pays 2.27% APY on 60-month CDs with a $500 minimum deposit. To buy these certificates of deposit, you have to live in Haverhill Bank’s market area – it has seven branches in Haverhill, Bradford and Merrimac, Mass., and in Salem, N.H. – and do so in person at a branch.

We saw three rate cuts this week on existing deals on our list.

NEFCU on Long Island cut its special 20-month bump-up CD from 1.25% APY to 1.20% APY, now less than the top 2-year deal on our CD Rates Leaderboard. And Eagle Bank in Massachusetts cuts its 60-month CD rate from 2.27% APY to 2.15% APY. We’ve removed both offers from our list.

In Texas, Suntide Credit Union cut three rates: Its 24-month CD pays 1.50% APY, down from 1.90% APY; its 12-month CD pays 1.25%, down from 1.50% APY; and its 6-month CD pays 1.00% APY, down from 1.10% APY. All three deals remain on our list

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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