Compare CD Rates

FirstFedDirect just came out with a special 9-month CD with a yield of 4.30% APY. The minimum deposit is $10,000. This 9-month CD has an auto rate bump feature that’s tied to the 10-year Treasury rate. If the 10-year Treasury rae goes up, your yield goes up accordingly. However, if the 10-year Treasury Rate goes down, your yield remains where it is. The yield is limited to 9.99%. Potential rate increases will only occur at the end of each calendar quarter.

For those worried about inflation forcing rates up, this seems like it could reduce the risk. I haven’t reviewed the small print and the 10-year Treasury rates to see exactly how the rate bump works and the likelihood that it will be a worthwhile feature. The current yield of 4.30% APY is very competitive even without any rate bump feature.

FirstFedDirect is an internet division of First Federal Bank of California. The online bank serves customers in all states other than California. For those in California, you have to bank with First Federal Bank of California, and fortunately, they are also offering this same 9-month CD special.

The bank is another California bank that has been hit hard by the mortgage mess. It’s now down to the lowest rating of 1 star based on 3/31/08 data. However, BauerFinancial gives it a higher rating of 3 stars (adequate). This is also based on 3/31/08 data. As a result, it’s best to keep below the FDIC limits.

Eagle National Bank is offering a special 4.25% APY 10-month CD. The minimum deposit is $1,000. There’s also a 17-month special CD with a yield of 3.75% APY which is not nearly as competitive as the 10-month CD. The specials are listed in the bank’s rate table.

It appears that a branch visit may be required to open accounts. Branches are located in the suburbs of Philadelphia in the cities of Upper Darby, Villanova, Haverford, Lansdowne, Devon, Newtown and West Chester.

The bank has a 3.5 star rating (good) at BauerFinancial based on 3/31/08 data. It has been FDIC insured since 1987.

BankUnited is offering a special 4.00% APY CD with terms from 9 months to 12 months. The minimum deposit is $5,000. You can apply online to open this CD.

BankUnited’s Online Savings Account

BankUnited is still offering its high yield online savings account. The account used to be one of the rate leaders, but in the last few months it has fallen way behind. The current yield is 3.00% APY. BankUnited finally added an ACH transfer system to this savings account, but with the low rate and the customer service problems that many readers have noted, it’s still not a good deal.

BankUnited’s Financial Health

BankUnited has been hit hard by the mortgage problems. In the latest news, BankUnited is looking for alternative sources of capital. Its non-performing loans have been growing. On May 31st, 6.52% of its loans were non-performing. Share price is way down. Yesterday it closed at 73 cents. It was over $20 a share in 2007. Bankrate.com’s latest ratings is a 1 star based on 3/31/08 data which is down from 3 stars on 12/31/07 data. BauerFinancial gives it 3 stars (adequate) based on 3/31/08 data.

BankUnited is FDIC insured.

AmTrustDirect just increased the rates on many of its online CDs. A yield of 4.00% APY is now available on all terms from 12 months to 60 months. The yields for the shorter terms are 3.51% APY for a 6-month CD and 3.76% APY for a 9-month CD. Minimum on all accounts is $1,000.

Here’s some of the details:

• Online application allows for funding by ACH transfer or check
• IRA CDs are not available online
• The early withdrawal penalty is 3 months of interest for terms 11 months or less, 6 months for terms of 12 to 23 months, 9 months for terms 24 to 47 months and 12 months for terms of 48 months or more
• Accounts can be opened with up to two beneficiaries
• When CD matures, you can request closure of the CD by either mail or online by a secure message

Mutual Bank has just started a CD promotion with some competitive rates. It includes a 4.00% APY 18-month CD and a 4.50% APY 54-month CD. The minimum deposit is $2,500. It’s also available in an IRA.

It has been awhile since Mutual Bank has offered decent CD rates. There were several times last year when Mutual Bank had several very competitive CD specials.

CDs can be opened by mail from any state. In addition to opening the CD by mail, you can also open the CD at one of Mutual Bank’s branches. Branches are located in the Chicago metro area; in Staten Island, New York; Edison, New Jersey; and Houston, Texas.

Mutual Bank’s rating is currently at 2 out of 5 stars (below peer group). The bank is FDIC insured Please see this post to see ways to be FDIC insured for balances over $100K.

Since the Federal Reserve started cutting its short-term interest-rate target last fall, yields across certificates of deposit, savings accounts and money-market accounts have plummeted. But recently, yields on long term CDs have been rising, in part because of a rise in longer-term Treasury yields this month and investors’ expectations for higher inflation.

Some banks are already responding. While average CD rates have been relatively flat in April, a handful of banks offering high-yield CDs — such as Capital One Financial Corp, Advanta Bank and E*Trade Financial Corp. — have recently bumped up yields on some of their CDs stretching out three to five years.

KeyDirect recently raised rates on its longer-term CDs by 0.25 percentage point to 4.75% and 5% for its 60- and 84-month CDs, respectively. GMAC Bank raised the rates last week on its four- and five-year CDs to 4.35% from 4% and 4.15%, respectively. Bank of America has also increased rates on a variety of CDs stretching out as many as 47 months.

Some banks are also raising some of their short-term CD rates. Earlier this month, for example, ING Direct raised the rates on its six-, nine- and 12-month CDs to 3.3%, from 2.75%, 2.5% and 2.5%, respectively. Meanwhile, IndyMac Bank is offering special one-year CDs online with a yield of 4.15%.

Meriwest Credit Union is currently running two promotions. One is a special share certificate with a yield of 7.50% APY and a term of 12 months. The minimum and maximum deposit is $1,000. New membership and checking account are required. Existing members may open this CD if they refer a new member who opens this CD and a checking account.

The $1K cap applies to a member and not a household, so having more than one person open an account could increase the cap.

The other promotion is a checking account bonus in which you can earn up to $100: $50 for signing up for Direct Deposit and another $50 for setting up Online Bill Pay. The fine print details include:

• $1,000.00 per month minimum ongoing payroll Direct Deposit required to qualify for Direct Deposit bonus
• Active Bill Pay requires at least 2 bills paid with a 60-day period. Qualifying bill payments must be paid within 90 days of signing up for Online Bill Pay
• Limit one (1) Direct Deposit bonus and one (1) Bill Pay bonus per household
• Bonus may be reported as income to the IRS. Membership is required with a one-time, non-refundable $5 fee

Field of membership includes those who live, work or study in Santa Clara, Alameda, Contra Costa, San Mateo, or San Francisco County. Select Employer Groups include IBM employees and retirees. Family members and other SEG’s can also qualify. Membership requires a one-time fee of $5.

Branches are located in California cities of San Jose, Milpitas, San Mateo, Mountain View, Palo Alto, Menlo Park, Dublin and San Ramon. There are also two branches in Tucson, Arizona.

Savoy Bank is offering a special 4.71% APY 12-month CD. The minimum deposit is $2,000. It doesn’t seem to be listed at the bank’s website. A branch visit is required.

The bank was just established this January. The office is located on 1675 Broadway at 52nd Street, New York, NY 10019 (646-775-4000).

DeKalb County Credit Union has a special 5.05% APY 12-month certificate. The minimum deposit is $10,000. This is advertised on the credit union’s home page.

Membership is open to those who live or work in DeKalb, Cortland, Malta, Milan, Shabbona, or Afton Townships of Illionis. Please see the credit union’s membership page for the full details. Membership requires a minimum balance of $5 in the share savings account.

The credit union’s office is located in DeKalb, IL.

After the recent Fed interest rate cuts, many banks have been cutting their CD and savings rates as well. Bank of America’s current top CD rate has a 3.80% APY with $5,000 minimum balance.

Bank of America also offers a risk free CD with 3.35% APY and no fee early withdrawals. This means you can get the benefits of a high CD rate with the flexibility of a savings account.

This CD is only available online and not through brick and mortar Bank of America.