bank rates

Highest CD Rates Roundup For Sept. 27

Bringing you the very best CD rates from credit unions and local banks.Thanks to a number of nationally available deals, it’s not all that difficult for savers to find a CD that pays 2% again.

But that’s not good enough for most of us.

The best CDs have paid at least 2% for more than two months now. So I thought I’d take a look to see whether that’s had any impact on the flight from certificates of deposit that began in early 2009.

The data suggest savers aren’t ready to embrace CDs just yet.

Through the first eight months of 2013, savers withdrew $74 billion from CD accounts, according to Federal Reserve data on “small time deposits,” Fed-speak for CDs worth less than $100,000. As a percentage of total deposits, savers took out slightly more this year compared with the same time period in 2012.

Indeed, the slide appears to be continuing unabated. Take a look at the chart below to see just how much money has vanished from CD accounts in the last four years. That long, long slide down is measured in the hundreds of billions of dollars.

Chart showing the flight of money from CD accounts 2009-2013.

So where is this money going? Some savers have probably been forced into riskier investments, but the explosive growth in savings account deposits also continues.

As of Sept. 20, banks and thrifts held more than $7 billion in savings deposits, up from $5.4 billion at the start of the year.

As for the highest CD rates from credit unions and local banks, this week we added one deal:

  • Montana 1st Credit Union (www.mtfirst.com), which pays 2.22% APY on 60-month CD rates with a $1,000 minimum deposit. Credit union membership is open to residents of or nearby Missoula, Mont. This credit union’s sister institution, Horizon Credit Union, offers the same deal to its members in Idaho, Montana and Washington State.

We saw both some rate increases and decreases this week among the existing deals on our list.

For the second week in a row, Bank of Utica (www.bankofutica.com) in New York state raised rates on its 60- and 48-month CDs. Five-year CDs pay 2.50% APY, up from 2.40% APY, and 4-year CDs pay 2.25% APY, up from 2.15% APY.

And San Antonio Federal Credit Union (www.sacu.com) raised its 84-month CD rate from 2.05% APY to 2.10% APY.

We removed The Mint National Bank from our list after it cut 60-month CD rates from 2.10% APY to 1.50% APY, as well as Garden Savings Federal Credit Union, which eliminated its special 6-month offer.

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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