bank rates

Highest CD Rates Roundup For Nov. 15

Bringing you the very best CD rates from credit unions and local banks.Did somebody say bidding war?

The apparent fear in some circles is that banks will start one-upping each other when interest rates begin to rise in an effort to attract savers’ money.

I say bring it on.

The thesis in an alluringly headlined story in BloombergBusinessweek, “Banks Want Higher Interest Rates,” is that banks are tired of the low interest rates Ben Bernanke & Co. have stuck them with.

Pity them.

Mind you, these banks aren’t on our side. It’s not deposit rates that have them down; it’s low lending rates, which are cutting into profits.

Here’s why banks want higher interest rates in 2014: “When rates rise, lenders try to raise the amount they charge for loans faster than what they pay on deposits,” according to the story. This allows them to generate more profits.

But higher interest rates on the lending side could have unintended consequences, one analyst suggested.

Because deposit rates have been stuck so low for so long, there’s some thought that banks won’t be able to hold down yields on certificates of deposit and savings accounts once other interest rates begin to rise.

From the story:

“Savers are hurting after a 30-year run during which interest rates fell from a high of 20 percent to near zero, where they’ve been stuck since 2008. Customers tired of low yields may be quick to seek out competitors offering more attractive deposit rates, setting off bidding wars among banks, according to Nancy Bush, an independent analyst. ‘The banks won’t have the luxury of lagging deposit rates this time,’ she says.”

Again — Bring. It. On.

Highest CD Rates

Last Sunday, we published a post “More Top Banks Boost 60-Month CD Rates” that talked about the uptick in the number of banks that have increased 5-year CD rates.

That trend continued after publication of that post.

First, Virtual Bank, the online division of Florida-based Sabadell United Bank, increased its 60-month offer to 2.02% APY. On Friday, EverBank — the primarily online bank based in Jacksonville, Fla. — increased its 5-year offer to 2.01% APY.

There are now eight banks that offer nationally available 60-month CDs that pay at least 2% APY.

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

  • First Community Federal Credit Union ( pays 2.11% APY on 60-month CDs with a $300 minimum deposit to its customers in Illinois, Michigan and Wisconsin. That offer improves to as high as 2.21% APY based on your relationship with the credit union. Membership is available only in certain counties in these three states. See our original post for details.
  • Island Credit Union on New York’s Long Island ( pays 1% APY on 4-month CDs, 1.10% APY on 11-month CDs and 1.25% APY on 18-month CDs with a $1,000 minimum deposit. Credit union membership is open to anyone who lives, works, worships or attends school in the New York counties of Nassau or Suffolk, with the exception of East Hampton, Southampton and Shelter Island townships.

There was just one change on our list this week.

First Flight Federal Credit Union in North Carolina is no longer offering its 23- and 24-month CD specials so it’s 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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