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CD Rates Index – Week of December 3, 2012

Banking, CDs

Last week, we learned a few new things about some of the biggest U.S. banks. Over the weekend news hit that Bank of America, at last check the 2nd largest bank by asset size, will postpone plans to raise fees on checking accounts, a welcome announcement for thousands of consumers. Secondly, we found out that Wells Fargo finally expanded its mobile check deposit capabilities to mobile banking customers across the country.

These developments are all well and good for big bank customers, but unfortunately these banks still fall short in terms of savings and CD rates. Currently, the highest CD yield offered at BofA (for a 5 year CD) is an abysmal 0.35%. Wells Fargo’s offerings are just a bit better, with a special 58 month CD at 0.70% APY, but still well below the national average. Consumers are better seeking higher yields through online banks, community banks or a credit union.

Reference Table:

Length of Term (months) Average Promo APY Average Reg. APY
3 0.35% 0.17%
6 0.37% 0.28%
12 0.59% 0.41%
18 0.59% 0.48%
24 0.64% 0.63%
30 0.93% 0.66%
36 0.85% 0.83%
48 0.93% 1.00%
60 1.31% 1.24%

CD rates that beat the average

Short-term CDs

Institution State Term APY Notes
APCO Employees CU AL 6 months 1.01% Min $2,500
SouthWest Community CU AZ,NV,UT 6 months 1.00% Min $500
URW Community FCU VA 6 months 1.00% Min $500

1-2 year CDs

Institution State Term APY Notes
PATELCO CU CA 12 months 5.00% SPEC: New members only; Min/Max $1,000
Gulf Coast FCU TX 2 years 1.85% Min $500
Northwoods CU MN 2 years 1.51% Min $1,000

3+ year CDs

Institution State Term APY Notes
Progressive CU NY 5 years 2.32%
Menominee County FCU MI 5 years 2.29% Min $10,000
American Airlines FCU TX 5 years 2.27% Min $10,000

Banking image via shutterstock