CD Bonus Rates Index – December 2012
On the lookout for CD promotions? Try a short-term account of 3-6 months. On average, banks and credit unions are offering CD specials yielding almost 50% higher than the average non-promotional APY for a comparable.
For more rate information, use our tool to enter your zip code and how long you’re willing to invest your cash to find the best CD rates in your area.
Reference Table: What are average rates and how do they compare to average promotional rates?
|Length of Term (months)||Average Promo APY||Average Reg. APY|
Bonus CD rates that beat the average
|Xceed Financial FCU||CA||9 months||1.00%||Min $500|
|Fort Knox FCU||KY, IN, TN||6 months||1.00%||Min $500; Member must live in Kentucky, Indiana or Tennessee OR must have opened his/her account prior to November 1, 2009|
|CapitalSource Bank||CA||10 months||0.90%||Min $25,000; “Liquid CD”|
1-2 year CDs
|PATELCO Credit Union||CA||12 months||5.00%||$1,000 Max; New members only|
|Arrowhead Central CU||CA||12 months||2.01%||$2,500 Max|
|Generations Federal Credit Union||TX||18-21 monts||1.50%||Min $1,000|
3+ year CDs
|Citizens Community CU||IA||5 years||2.20%||Min $5,000|
|Idaho Central CU||ID||5 years||2.15%||Min $500; “Freedom” CD|
|Superior Choice CU||WI||58 months||2.08%||Min $10,000|
Note: Promotional rates are subject to change. Make sure to confirm CD rates with your bank or credit union.
A Refresher: Why Promotional/Special Rates Make a Difference
CD rates are historically low, and are likely to remain so for the near future. Yields are primarily a product of two forces that are out of a consumer’s control: (1) economic environment and (2) the fact that longer-term investments will demand higher returns.
There is however, one factor that offers more flexibility for consumers: individual banks and credit unions each have their own capital strategies, which cause them to offer different promotional rates for certain CDs (in an effort to drive balances towards the most ideal deposit products for them). Such promotional/bonus rates can easily outperform typical accounts of a comparable term and are worth looking for to help boost returns.
Bonus button image via shutterstock