bank rates

Highest CD Rates Roundup For July 12

Bringing you the very best CD rates from credit unions and local banks.It looks like the Federal Reserve is attempting to move the goal post … again.

After Fed Chairman Ben Bernanke last month said the central bank could begin winding down efforts to keep long-term interest rates low, the market freaked out.

Treasury yields climbed. Mortgage rates shot up a percentage point.

We have seen a few better deals on certificates of deposit coming from some banks and credit unions. But average CD rates have remained at or near record lows.

And then Bernanke began changing his tune, suggesting the Federal Reserve might continue putting pressure on interest rates, both short- and long-term.

This is undeniably bad news for savers who have seen the Fed recast again and again expectations on when interest rates might finally increase.

From Reuters:

“With (Treasury) yields rising, some Fed officials warmed to the idea of anchoring borrowing costs more firmly by pledging to keep overnight rates near zero well after the jobless rate falls below 6.5%, the Fed’s current threshold for considering tighter monetary policy. Unemployment stood at 7.6% in June. …

“The president of the Minneapolis Fed, Narayana Kocherlakota, championed the idea nearly a year ago when he called for a 5.5% threshold for the jobless rate — and he hasn’t backed down since.”

We aren’t expected to reach a 6.5% unemployment rate until 2015. The Fed projects unemployment of 5% to 6% in the “longer run.”

We don’t know if the Fed will take action to keep interest rates low for even longer than expected. What we do know, though, is as long as short- and long-term lending rates remain low, deposit rates will continue to suffer.

This week we added two deals to our list of the highest CD rates from credit unions and local banks. One is available to savers in all 50 states:

  • USAlliance Federal Credit Union ( in New York pays 1.01% APY on 11-month CDs and 1.31% APY on 13-month CDs with a $500 minimum deposit. You must use new money to purchase these certificates of deposit. Credit union membership is open to anyone who donates $15 to Arc of Weschester, a charitable organization helping children with developmental disabilities.
  • Institution for Savings ( in Massachusetts pays 2.00% APY on 40-month CDs with a $500 minimum deposit. You have to live on Massachusetts’ north shore, which includes Boston, to buy these certificates of deposit.

We saw one rate increase on our list this week: San Antonio Federal Credit Union boosted its 84-to-119-month CD rate from 2.00% APY to 2.20% APY and its 120-month CD rate from 2.45% APY to 2.65% APY.

There was just one cut this week. Northern Bank & Trust ended its 18-month deal, but now offers a 36-month CD that tops our CD Rates Leaderboard.

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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