bank rates

Highest CD Rates Roundup For May 25

Bringing you the very best CD rates from credit unions and local banks.We all know CD rates have been terrible, and getting worse, for years.

But now a former congressman suggests it could become a presidential campaign issue.

Writing this week on Politico, a political news website, Texas Democrat Martin Frost says senior citizens, President Obama’s “weakest demographic in 2008,” could skew even more Republican, in part because of low interest rates.

“I recall how seniors would come to my congressional town hall meetings to complain about the decline in their standard of living the last time interest rates were low. I was surprised,” Frost wrote. “I had thought the public would be happy with lower interest rates, since it makes it easier to finance a house or a car. But seniors instead gave me an earful about how lower interest rates just aren’t good for everyone.

“Obama cannot ignore these concerns, and he must have some answers ready.”

Never mind that the president has only a secondary influence on interest rates (he nominates the Federal Reserve chairman and its board members, who set rate policy), Frost says he expects seniors to recall their weak CD returns when entering the voting booth this fall.

I’d love to hear from readers about whether they will base their vote, at least in part, on the state of deposit rates. Just add your two cents below in our comments section.

As for the top certificates of deposit on our list of the highest CD rates from credit unions and local banks, we added deals from three credit unions this week, including a 60-month offer available to all savers:

  • Stanford Federal Credit Union pays 2.05% APY on 60-month CDs with a $1,000 minimum deposit. Savers anywhere can become credit union members by joining one of two organizations, the Museum of American Heritage or Friends of Palo Alto Libraries. Museum membership costs $20, while the library organization charges $15 for individual memberships. A checking account with direct deposit is required to earn this rate.
  • Chocolate Bayou Federal Credit Union pays 2.07% APY on 60-month CDs with a $1,000 minimum deposit. Credit union membership is open to anyone who lives, works or worships in Brazoria County, Texas, south of Houston.
  • Via Credit Union pays 2.27% APY on 60-month CDs with a $500 minimum deposit and 1.75% APY on 33-month CDs with a $10,000 minimum deposit. Membership is open to anyone who lives and works in the central Indiana counties of Grant, Blackford, Madison or Miami.

There are a few rate cuts to report as well, including some more from those strong Texas credit unions we featured earlier this month.

El Paso-based GECU cut its 60-month CD rate from 2.58% APY to 2.53% APY.

Randolph-Brooks Federal Credit Union, near San Antonio, cut its top 60-month CD rate from 2.09% APY to 2.04% APY.

This was the second consecutive week of rate cuts for these two institutions.

Houston-based Space City Credit Union’s 60-month CD rates really crashed, falling from 2.53% APY to 2.02% APY.

And Profile Bank in New Hampshire cut its 39-month CD special from 1.76% APY to 1.51% APY. That deal has fallen from our list.

You’ll find all 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 that you’ll always know what great deals are out there from credit unions and local banks.

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One Existing Comment
  1. Kathy at Bankaholic said:
    on June 22nd at 12:36 pm

    Chocolate Bayou is now paying 1.80% on 60-month CDs. Via Credit Union is paying 2.22% on 60-month CDs and 1.65% on the 33-month special.