bank rates

Highest CD Rates Roundup For June 14

Bringing you the very best CD rates from credit unions and local banks.Break out the champagne, strap on your dancin’ shoes and grab a party hat.

Average 5-year CD rates are on the rise.

OK, OK, the average rate increased by just one-one hundredth of a percentage point this week in our national survey, lifting it barely off the term’s record low, but …

… It’s the first week-over-week increase since March 2012.

Since then, the average 60-month CD rate has dropped by nearly four-tenths of a percentage point to 0.78% APY.

That’s beyond terrible. So even a slight bump is good news.

But don’t expect much more relief.

The Federal Reserve continues to hold short-term interest rates near zero and has vowed to keep them there until the unemployment rate reaches 6.5%. It’s not expected to hit that mark until sometime in 2015.

Investors have started questioning the Fed’s commitment to this benchmark even as it prepares to wind down another effort to boost the economy.

But a story in Friday’s Wall Street Journal sends a pretty clear message:

“Federal Reserve officials have been trying to convince investors for weeks not to overreact when the central bank starts pulling back on its $85-billion-per-month bond-buying program. An adjustment in the program won’t mean that it will end all at once, officials say, and even more importantly it won’t mean that the Fed is anywhere near raising short-term interest rates.”

That means certificate of deposit yields aren’t likely to show any significant increases for some time.

Still, you can do much better than average by picking a deal on our CD Rates Leaderboard or on our list of the highest CD rates from credit unions and local banks.

We added two deals to that list this week:

  • Libertad Bank (www.libertadbank.com) in Texas pays 1.25% APY with a $1,000 minimum deposit on 18-month CDs. Texas residents can buy these certificates of deposit at Libertad Bank or apply online.
  • P1FCU (www.p1fcu.org) is offering a special anniversary CD for a limited time that pays 2.75% APY for 60 months. Minimum deposit is $500. Credit union membership is open to residents of several counties in northern Idaho and eastern Washington.

A couple of credit unions on our list raised rates this week, a rare occurrence.

Stanford Federal Credit Union raised its 5-year CD rates by five-one hundredths of a percentage point. The rates are tiered based on your deposit, with the highest rate topping out at 2.06% APY.

San Antonio Federal Credit Union raised its 10-year CD rate to 2.30% APY from 2.10% APY.

Of course, there are rate cuts to report, as well.

Denver Community Credit Union cut its 60-month CD rate from 2.10% APY to 1.90% APY. And First Federal Credit Union cut its 5-year CD from 1.85% APY to 1.50% APY and has been removed from 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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