bank rates

Highest CD Rates Roundup For May 4

Bringing you the very best CD rates from credit unions and local banks.Are we finally nearing the bottom?

Yes, according to an analysis by Market Rates Insight, a California-based pricing consultant to financial institutions.

The firm says the national average rate for deposits should remain flat in May — the first month since May 2007 in which average rates haven’t dropped.

Our own analysis shows a flattening of average CD rates, as well. With the exception of 60-month CDs, average rates are virtually unchanged since the beginning of 2012.

This isn’t all that surprising, since average rates could hardly drop much further. The average 3-month CD pays just 0.15% APY, for example.

Unfortunately, we haven’t hit bottom when it comes to the best available CD rates. We’re seeing continuing declines on our CD Rates Leaderboard.

Nationally available rates in five of the six terms we track have fallen since the end of 2011:

  • 3-month CD rates have fallen from 0.80% APY to 0.65% APY.
  • 6-month CD rates have fallen from 0.88% APY to 0.81% APY.
  • 24-month CD rates have fallen from 1.30% APY to 1.20% APY.
  • 36-month CD rates have fallen from 1.65% APY to 1.55% APY.
  • 60-month CD rates have fallen from 2.20% APY to 1.91% APY.

And we’ve also seen some of the best nationally available credit union CD rates fall as well.

Last week, it was Melrose Credit Union; this week, Affinity Plus Federal Credit Union and McGraw-Hill Federal Credit Union slashed top rates, prompting their removal from our list of highest CD rates from credit unions and local banks.

If you’re looking for some hope, there is some optimism to be had, we suppose, both with rates in general and our list in particular.

Dan Geller, executive vice president at Market Rates Insight, says not only will average rates halt their slide, they could increase later this year.

“If the economy continues to improve at the current pace, we are likely to see a turning point in deposit rates later this year barring, of course, any adverse impact by the European sovereign debt crisis or a major spike in oil prices,” he says.

And this week, we added a nationally available credit union deal that’s now the best on our list for 60- and 36-month CDs:

Endura Financial Federal Credit Union pays 2.32% APY on 60-month CDs and 1.87% APY on 36-month CDs.

There are a handful of local banks and credit unions that beat this deal but not many.

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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  1. Kathy at Bankaholic said:
    on June 27th at 07:56 am

    Endura Financial’s rates are lower now — 1.75% for 60-month CDs and 1.21 for 36-month CDs.