bank rates

Highest CD Rates Roundup For Sept. 21

Bringing you the very best CD rates from credit unions and local banks.It is my sad duty to report we’ve reached a terrible milestone.

For the first time, the average 5-year CD pays less than 1.00% APY.

A week after the Federal Reserve extended its low-interest rate pledge into 2015, our national survey of banks and thrifts showed 60-month CDs now pay on average 0.99% APY.

That’s down from the already miserable 1.16% APY at the start of the year, and down from 3.00% APY in the week before the Fed’s rate-setting committee first slashed short-term rates to near zero in December 2008.

The slide in the national average has picked up since May, even as the top nationally available bank rate has remained fairly steady. But as the graph below shows, in the last two years the best deal and the national average have tracked downward at roughly the same pace.

That doesn’t bode well.

While the national average slipped once again, the top yields on our list of the highest CD rates from credit unions and local banks generally held steady, although there were a number of institutions that slashed rates.

This week, we added one nationally available credit union deal, one local bank deal and two local credit unions to our list:

  • Eli Lilly Federal Credit Union ( pays 2.00% APY on 5-year CDs with a $1,000 minimum deposit. This offer is available to savers nationwide. You can join this credit union by joining Tru Direction Inc., an Indianapolis-based nonprofit organization that helps people improve their financial literacy. Membership in Tru Direction costs $5, but Eli Lilly Federal Credit Union will turn around and deposit that same amount in your share savings account. This is the highest nationally available credit union rate on our list.
  • Patriot Community Bank ( pays 1.60% APY on 2-year CDs with a $1,000 minimum deposit. You have to be a Massachusetts resident to buy these certificates of deposit and do so in person at the bank’s one branch in Woburn, a suburb north of Boston.
  • Police and Fire Federal Credit Union ( pays 2.00% APY on 60-month CDs with a $500 minimum deposit. Credit union membership is open to all active and retired Philadelphia police officers and firefighters, their immediate families and everyone who works for or belongs to hundreds of affiliated businesses, labor unions and civic groups.
  • SECNY Federal Credit Union ( pays up to 2.30% APY with a $50,000 minimum deposit on 60-month CDs. With a $1,000 minimum deposit, you’ll earn 2.10% APY. Credit union membership is open to anyone who lives, works, worships or attends school in the central New York counties of Onondaga, Madison, Oswego and Cayuga, and requires a $5 deposit in a share savings account. You also must open a checking account to earn these rates.

We’re happy to report HAPO Community Credit Union in Washington state increased its 36-month CD rates from 1.50% APY to 1.75% APY. It now also offers that rate on 24- and 30-month CDs, as well.

Here are this week’s cuts:

We’ve removed from our list Sandia Laboratory Federal Credit Union, which had offered top 36-month rates available to anyone. This week it cut top rates by about three-tenths of a percentage point.

Cole Taylor Bank in Illinois cut its 36-month rate from 1.75% APY to 0.95% APY and its 48-month rate from 2.00% APY to 1.15% APY. Both of these deals have been removed from our list.

CHACO Credit Union in Ohio cut its 60-month rate from 2.00% APY to 1.75% APY and its 37-month rate from 2.02% APY to 1.25% APY. Both of these deals have been removed from our list.

Sun Federal Credit Union cut its 54-month CD rate from 2.02% to 1.75% APY for savers in Ohio and Pennsylvania. We’ve removed this deal from our list.

Western Heritage Bank in New Mexico is no longer offering 60-month CDs and has been removed 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 you’ll always know what great deals are out there from credit unions and local banks.

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Comments (1)
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One Existing Comment
  1. jackson sunzu said:
    on September 24th at 01:20 pm

    no comm
    ent but i want 2 join a club