On average, CD rates are struggling to keep up with most high yield savings accounts at online banks, unless you are willing to stow your cash away for years at a time. The trick to utilizing CDs, however, is to look for bonus rates, or simply do your homework to find the best rate among local banks and credit unions as well as online banks. Be wary of too-good-to-be-true banking offers, however, and always verify that your institution is federally insured by the FDIC or NCUA. Last week, we reported on one case of an outrageous CD offering at an unchartered credit union.
Below are some examples of accounts that are outperforming most of the competition.
|Length of Term (months)||Average Promo APY||Average Reg. APY|
CD rates that beat the average
|SouthWest Community CU||UT||11 months||3.00%||$1,000-$20,000; Requires Direct Deposit|
|Country Heritage CU||MI||6 months||0.91%||Min $1,000|
|West Virginia Central CU||WV||6 months||0.85%||Min $1,000|
1-2 year CDs
|PenFed||DC, HI, MD, NC, NY, TX, VA||2 years||1.60%||Min $1,000|
|Industry State Bank||TX||12 months||1.11%||Min $500|
|Beal Bank||FL||12 months||1.01%||Min $1,000|
3+ year CDs
|Complex Community FCU||TX||5 years||2.10%||Min $500|
|Kraftman FCU||LA||5 years||2.02%||Min $1,000|
|Partner Colorado CU||CO||4 years||1.42%||Min $500|
Banking image via shutterstock