Digital Federal Credit Union (DCU) is offering a 60-month CD that pays 2.86% APY with a $25,000 minimum balance and 2.76% with a $500 minimum balance.
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I looked long and hard for a bank or credit union with CD rates above 3%. There are not many left. This week though, I did find a competitive rate from a credit union that is open to almost everyone regardless of where you live in the United States. I thought that was a deal worthy of some regognition.
Digital Federal Credit Union (DCU) is offering a 60-month CD that pays 2.86% APY with a $25,000 minimum balance and 2.76% with a $500 minimum balance. It's hard to call 2.86% APY competitive, but it is when the national 5 year CD rate average is 1.56% APY and the highest 5-year CD rate from a bank is 2.78% APY.
DCU is the largest credit union in Massachusetts with over $3 billion in assets. It is headquartered in Marlborough, MA, about 30 minutes outside of Boston and has 21 branches in the greater Boston area. The CD can be opened via a DCU branch or, via an online application.
One of the ways that credit unions differ from banks, is that they have restriced membership. You must meet the membership criteria before you can join and do business with the credit union. DCU's membership criteria is very open and almost anyone can qualify. Like most credit unions, DCU provides membership if a close family member already belongs or if you work or have retired from a certain employer. They also provide membership if you belong to a long list of organizations. For example a $10 membership to the American Association of People with Disabilities qualifies you to join DCU. It's a win-win. You can take advantage of DCU's competitive CD rates and help a worthy charity at the same time. Full eligibility information can be found here.
Digital Federal Credit Union has a Texas Ratio of 19.09% versus the national credit union average of 10.30%. That's higher than normal but still below the 100% threshold that is considered a sign of bank distress.
If you don't live near a DCU branch and don't want to open an account online, check out the best CD rates from banks and credit unions in your local area.
Check back next Monday for a new bank deal. Email any deals you know about to ratedeal (at) bestcashcow.com. Feel free to also share them below. If you're a bank and have a great deal not listed on BestCashCow, register for access and add the deal to the site.
The aptly named Institution for Savings is offering a 3 year CD that pays 2.50% APY with a $500 minimum balance to open. That's pretty good considering the average 60 month CD is paying only 1.60%. The average 3 year CD rate is 1.12% APY according to BestCashCow data.
The top CD rates actually went up a bit this week, with the top 5 year CD going from 2.78% APY to 3.01% APY. The same is true of the 3 year CD where the top rate of 2.45% APY was dethroned by the Institution for Savings In Newburyport. The aptly named Institution for Savings is offering a 3 year CD that pays 2.50% APY with a $500 minimum balance to open. That's pretty good considering the average 60 month CD is paying only 1.60%. The average 3 year CD rate is 1.12% APY according to BestCashCow data.
The Institution has seven branches around Newburyport, MA in towns such as Ipswich, Rowley, and Newburyport. The bank was founded in 1820 and has approximately $1.21 billion in assets. Financially, the bank looks very strong with a very low Texas Ratio of 2.78% versus the national average of 21.06%. Its Return on Equity is also strong at 9.55% versus the national average of 7.57%. And like many banks offering higher rates, it has grown significantly in the past five years, increasing assets from $552 million in 2006 to the $1.21 billion today.
If you don't live near a First Choice Bank branch, look for the highest CD rates in your local area. BestCashCow has the Inernet's largest database of bank rate information.
Check back next Monday for a new bank deal. Email any deals you know about to ratedeal (at) bestcashcow.com. Feel free to also share them below. If you're a bank and have a great deal not listed on BestCashCow, register for access and add the deal to the site.
The First National Bank of St. Ignace is paying 1.51% APY on a 12 month Flex-CD for balances over $10,000. Funds over $10,000 can be withdrawn at anytime after seven days, making this a CD with a great rate and flexibility.
A reader emailed me today about a great 12-month CD deal from the First National Bank of St. Ignace. The bank is paying 1.51% APY on a 12 month CD for balances over $10,000. The average 1-year CD rate according to BestCashCow is 0.60% APY. But to make the deal even better, the bank allows you to withdraw any funds above $10,000 as many times as you want, within reason. So, you get a guaranteed good rate of 1.51% APY and you have the flexibility of pulling money from the CD if you need it for expenses or simply want to reinvest it at a higher rate should rates go up - which they won't in the next 12 months.
First National Bank is also offering a 36-month CD paying 2.28% APY with a minimum balance of $100,000. It's not the top rate in the country but it's close and much higher than the BestCashCow average of 1.14% APY.
The CDs must be opened in person at one of the seven branches located on the upper Penninsula of Michigan. Interestingly, it seems that a lot of the top rates lately have been from banks located near the Canadian border. I wonder if the relatively robust Canadian economy has spillover effects close to the border? Research I did earlier in the year suggested that banks in the mid-West provided higher rates, possibly due to a booming commodity market.
The bank looks to be in improving financial shape. In 2006, the bank's Texas ratio was 53% but it has come down over the past five years to 21% today. That's close to the national average. The bank has $214 million in assets, up from $185 million in 2006.
For those of you unfamiliar with St. Ignace, as I was, it looks like a popular vacation destination in the Upper Penninsula.
If you don't think you'll make it to St. Ignace or the surrounding towns anytime soon to open a CD, there are tens of thousands of other rates in our database. Find the best CD rates in your local area by clicking through to our tables above.
Check back next Monday for a new bank deal. Email any deals you know about to ratedeal (at) bestcashcow.com. Feel free to also share them below. If you're a bank and have a great deal not listed on BestCashCow, register for access and add the deal to the site.
BestCashCow is the most comprehensive bank rate site on the Internet. Since 2005, we have monitored savings account, money market account and Certificate of Deposit rates from over 8,000 banks and 7,700 credit unions to find and display the best offers for those looking to earn and save more. You can learn more about the company here.
BestCashCow is the most comprehensive bank rate site on the Internet. Since 2005, we have monitored savings account, money market account and Certificate of Deposit rates from over 8,000 banks and 7,700 credit unions to find and display the best offers for those looking to earn and save more. You can learn more about the company here.
The top CD rates actually went up a bit this week, with the top 5 year CD going from 2.78% APY to 3.01% APY. The same is true of the 3 year CD where the top rate of 2.45% APY was dethroned by the 
A reader emailed me today about a great 12-month CD deal from the 
