As we look forward to a day of feasting and spending time with loved ones this Thanksgiving, savers who were able to lock in a high cd rate a few years ago should be especially thankful. Even 3 year CDs, with average yields below 0.90% are struggling to keep up with some of the best online savings accounts. Average rates declined a few basis points this week for most terms, and even promotional rates are not offering significantly improved yields.
What can be done? In keeping with the spirit of shopping around for Black Friday deals, consumers can still work to find the best CD rates possible and make the best of a bad situation. See below for some of the highest yielding accounts.
|Length of Term (months)||Average Promo APY||Average Reg. APY|
CD rates that beat the average
|HomeBanc N.A.||FL||3 months||1.50%||SPECIAL: New Money, Min $10,000|
|Utah Power CU||UT||6 months||1.15%||Min $1,000|
|Fort Dodge Family CU||IA||6 months||1.00%||Min $500|
1-2 year CDs
|Riverdale CU||AL||2 years||1.59%||Min $500|
|Ed-Med FCU||NY||2 years||1.51%||Min $1,000|
|AB & W CU||VA||2 years||1.50%||Min $1,000|
3+ year CDs
|Northwoods CU||MN||5 years||2.26%||Min $1,000|
|Telcoe FCU||AR||5 years||2.17%||Min $1,000|
|Delta County Credit Union||MI||5 years||2.17%||Min $1,000|
Credit unions and community banks aren’t for everyone. Online banks are excellent options for savers, especially when it comes to CDs. They tend to offer rates much higher than the average.
Ally Bank offers a convenient 12-month CD with no minimum balance required to open and you’ll earn a respectable 1.04% APY on the balance.
Banking image via shutterstock