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CD Bonus Rates Index – Week of October 22, 2012

Banking, CDs

On the lookout for CD promotions? Try a short-term account of 3-12 months. On average, banks and credit unions are offering CD specials yielding around 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 this week’s average rates and how do they compare to average promotional rates?

Length of Term (months) Average Promo APY Average Reg. APY
3 0.29% 0.18%
6 0.41% 0.28%
12 0.61% 0.42%
18 0.56% 0.49%
24 0.61% 0.64%
30 0.86% 0.67%
36 0.87% 0.85%
48 0.95% 1.03%
60 1.37% 1.27%

Bonus CD rates that beat the average

Short-term CDs

Institution State Term APY Notes
America’s CU WA 6 months 0.75%  Veterans Family Fund Certificate
Focus Bank MO 7 months  0.60%
 Farmers State Bank IA  10 months 0.60%  —

1-2 year CDs

Institution State Term APY Notes
Montana 1st CU  MT 18 months 1.11% New Money, $10,000 Min
 New Hampshire FCU NH  20 months 1.10% Members under age 18 may open for just $250
Pen Air FCU   AL, FL 13 months 1.00%

3+ year CDs

Institution State Term APY Notes
 Citizens Community CU IA  5 years  2.20%  $5,000 Min
 Co-op CU WI 4 years  2.00% $1,000 Min
TransWest CU UT 6 years  1.80%  $1,000 Min

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