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CD Bonus Rates Index – January 2013

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by on January 28, 2013

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On the lookout for CD promotions? Try a short-term account of 1 year or less. On average, banks and credit unions are offering short-term CD specials yielding around 30%-60% higher than the average non-promotional APY for a comparable account.

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
3 0.23% 0.17%
6 0.43% 0.26%
12 0.53% 0.40%
18 0.51% 0.46%
24 0.64% 0.61%
30 0.85% 0.63%
36 0.78% 0.80%
48 0.88% 0.97%
60 1.23% 1.20%

Bonus CD rates that beat the average

Institution State Term APY Notes
FL, RI, TX, UT, VA, Online 11 months 3.00%  $1,000-$20,000; Direct Deposit required
DCH Credit Union AL 61 months 1.86% Min $10,000
Crescent Bank & Trust LA 44 months 1.80% Min $5,000
Hudson City Savings Bank CT, NJ, NY 5 years 1.65% Min $500
Beacon CU IN 34 months 1.61% 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

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