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CD Bonus Rates Index – March 2013

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by on March 26, 2013

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If you’re looking for the best place to store some extra cash, promotional CDs may be one of your best bets. They can offer rates 50% or more above the typical rate, especially at a big bank. Read on for promotional CDs that are beating the average.

For more local rate information, use our tool 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% 0.16%
6 0.79% 0.25%
12 0.51% 0.38%
18 0.50% 0.44%
24 0.59% 0.58%
30 0.80% 0.61%
36 0.79% 0.78%
48 0.88% 0.94%
60 1.19% 1.16%

Bonus CD rates that beat the average

Institution State Term APY Notes
TTCU The Credit Union OK 19 months 1.15%  Min $1,000
Patriot FCU PA 3 years 1.75% Min $1,000
BrightStar CU FL 23 months 1.25% Smart CD; Min $500
Vermont FCU VT 45 months 1.40% Min $500
Penn Liberty Bank PA 42 months 1.40% Min $1,000

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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