bank rates

Highest CD Rates Roundup For March 14

Bringing you the very best CD rates from credit unions and local banks.We’ve spent some time congratulating savers who took advantage of PenFed’s 3.04% APY CD rates. We’ve also marveled at the huge increase in deposits PenFed took in as a result.

But the $700 million in new deposits and total CD deposits of $6.5 billion is practically nothing when compared with what the big banks still manage to hold onto.

Which is just a shame.

We took a look at the financial condition reports Bank of America filed with the FDIC. These are similar to the reports Pentagon Federal Credit Union filed with the National Credit Union Administration.

Here are the sad facts. Through Dec. 31, 2013, Bank of America had deposits of:

  • $12.9 billion in CDs with three months or less to maturity.
  • $25.4 billion in CDs with three to 12 months to maturity.
  • $5.4 billion in CDs with 1 to 3 years to maturity.
  • $2.1 billion in CDs with more than 3 years to maturity.

These are for accounts with $100,000 or less on deposit. And while Bank of America saw the total amount of money in these accounts shrink by $8.6 billion between 2012 and 2013, it still finished last year with more than $46 billion in these kinds of CD accounts.

Forty-six billion dollars vs. $6.5 billion. Not even close.

The big banks are never going to compete if Americans continue to pump this obscene amount of money into accounts that offer an insulting return.

How insulting?

Bank of America’s “featured CD” on its website – a 12-month certificate of deposit – pays 0.12% APY. The average 12-month CD pays 0.23% APY, according to our most recent survey, and the top offer on our CD Rates Leaderboard pays 1.05% APY.

The 5-year term, if you can believe it, is far worse. Bank of America advertises a 0.15% APY online. The average 60-month CD pays 0.80% APY, while the top nationally available bank CD goes for 2.28% APY.

Folks, tell your friends and your neighbors – heck, even your enemies – to stay away from BofA CDs.

Highest CD Rates

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

  • Columbus First Bank (www.columbusfirstbank.com) pays 1.15% APY on 14-month CDs with a $500 minimum deposit. You don’t have to be an Ohio resident to purchase these certificates of deposit, but you need to visit Columbus First Bank in person. It has a single office, at 6877 North High St. in the Columbus suburb of Worthington.
  • HomeBanc (www.homebanc.com) pays 1.50% APY on 3-month CDs with a $5,000 minimum deposit. You have to be a resident of Florida to buy these certificates of deposit and do so in person at one of HomeBanc’s 14 banking centers.

There was just one change on our list of existing deals – an increase!

Freedom Bank in New Jersey raised the rate on its 24-month CD from 1.31% APY to 1.35% APY.

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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