bank rates

Highest CD Rates Roundup For June 28

Bringing you the very best CD rates from credit unions and local banks.We’re not ready to call this a trend, but we’re seeing a slight increase in the number of banks and credit unions boosting long-term CD rates.

Just this week, two credit unions on our list of the highest CD rates raised 5-year CD rates.

Melrose Credit Union, which sells certificates of deposit to savers nationwide, now pays 1.96% APY on 60-month CDs. That’s more than two-tenths of a percentage point higher than this New York-based credit union paid last month.

That’s now the best-paying deal available to all savers that doesn’t require a checking account to purchase a CD.

And Singing River Federal Credit Union, which offers CDs to savers in Mississippi and Alabama, boosted its 60-month CD rates. Its tiered rates start at 2.00% APY with a $1,000 minimum deposit and top out at 2.17% APY with a $100,000 minimum deposit.

With 5-year Treasury yields — which are closely correlated with 5-year CD rates — on the rise, this sudden uptick from a number of institutions isn’t totally unexpected.

But even if Wall Street doesn’t believe it (or doesn’t care), officials with the Federal Reserve are trying to do their best to convince us they plan to continue exerting downward pressure on interest rates.

We saw speeches from three officials on Thursday who specifically reiterated the Fed’s plan to continue buying Treasuries and mortgage-backed securities — efforts that have driven down long-term interest rates over the past couple of years.

This comes a week after Fed Chairman Ben Bernanke said the central bank could begin later this year scaling back its efforts to boost the economy by driving interest rates down.

This was not a new policy position, but it prompted a surge in mortgage rates, while Treasury yields continued to climb.

Dennis Lockhart, president and CEO of the Federal Reserve Bank of Atlanta, said this to members of the Marietta, Ga., Kiwanis Club on Thursday:

“It could be argued that financial markets are reflecting a different interpretation of Chairman Bernanke’s commentary. I don’t want to be too cute about a serious matter, but to make an analogy, it seems to me the Chairman said we’ll use the patch (and use it flexibly), and some in the markets reacted as if he said “cold turkey.” In any event, the upshot has been a rise of market volatility, higher long-term interest rates, and a decline in bond and equity prices.”

If reassurances from Fed members begin to work, perhaps Treasury yields will begin to recede. If not, we may see a few more banks and credit unions boost long-term CD rates.

Fingers crossed.

We added two deals to our list of highest CD rates from credit unions and local banks:

  • Credit Union West (www.cuwest.org) pays 1.90% APY on 60-month CDs with a $10,000 minimum deposit. Membership is available to residents of Maricopa or Yavapai counties in Arizona.
  • First Republic Bank (www.firstrepublicbank.com) pays 2.25% APY on 72-month CDs and 2.00% APY on 60-month CDs, both with a $5,000 deposit. The bank operates branches in California, Connecticut, Florida, Oregon, Massachusetts and New York. A branch visit is required to open a CD.

There were a couple of rate cuts this week to report.

Charles Street Federal Credit Union cut its 60-month CD rates from 2.48% APY to 2.00% APY; its 36-month CD rates fell to 1.30% APY from 1.71% APY. The 60-month deal remains on our list, but we removed the 36-month deal.

We also removed the 60-month CD rate deal from P1FCU. This credit union had been offering a 2.75% APY deal to savers in Idaho and Washington state.

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.

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (0)
1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 5.00 out of 5)
Loading...
No Existing Comments

Comments are closed.