The other CD rates are also attractive:

12 months 1.25% APY
18 months 1.50% APY
24 months 1.75% APY
36 months 2.00% APY

These best cd rates can be enjoyed by opening an account for as little as $500.

When you apply for membership to the credit union online, you just need to select from the drop down menu the organization which you want to join. The credit union requires a minimum balance of $5 to a share savings account.

Aspire FCU is the former FAA Eastern Region FCU. They have offices operating in New Hampshire, Virginia, New Jersey, and New York.

Aspire has good financial ratings Bankrate.com issued 3 stars for performance while BauerFinancial stamped 4 stars for soundness and safety. These were based on their June 2009 data.

The credit union is covered by the NCUA through charter number 5800.

You may also get a 0.15% bonus if you are an existing or new savings or checking account client.

It looks that a branch visit is necessary to open an account. They have offices in Missouri, Iowa, South Dakota, Nebraska, Kansas, Colorado, and Arizona. The website does not detail the penalties and fees involved so it will be best to ask the bank representative that you’ll talk to.

Great Western Bank has strong ratings. Both Bankrate.com and BauerFinancial issued 4 stars for their excellent performance.

The bank is covered by the FDIC with certificate number 15289.

Here is a quick glance of the current interest rates for their CD offerings:

                                   
Term            $1K-$95K       $95K-$175K         $175K+
——-       ——–         ———-       ——-
15 months       1.79% APY         1.85% APY        2.10% APY
18 months       1.90%               1.95%              2.20%
2 years             2.10%               2.15%              2.41%
30 months       2.30%               2.36%              2.61%
3 years             2.50%               2.55%              2.81%
4 years             2.75%               2.81%              3.06%
5 years             3.15%               3.21%              3.46%
7 years             3.75%               3.80%              4.06%

We called USAA and asked for the latest interest rates. We were told that the cd rates are usually updated on Fridays. The CSR informed us that the certificate of deposit rates will lock upon submission of the application. You can send the funds via ACH transfer from your savings or checking account. Upon maturity of the certificate of deposit, you can instruct the bank to send the funds to another account through ACH.

USAA also offers IRA certificates which has the same current interest rates and tier structure as their CDs.

We checked out the link to the depository agreement with regard to certificate of deposit and took note that the earnings of the account can be added to the balance of your CD or be transferred to another account on a monthly basis. Certificates that have a term longer than 12 months, interest can be paid yearly, quarterly, or monthly.

There is a grace period of 10 days upon maturity of your CD. You can close the CD during this time without any penalty.

Early withdrawal penalties apply. It will cost you 180 days of earnings if you decide to take funds out prior to maturity of a 1 year to 5 year cd. Seven-year certificates are charged with one year of its interest.

The membership page does not state it yet but we have confirmed that anyone can enjoy the high yield depository products of USAA even when you don’t have a military connection. Their insurance and loan products though still require that you have military connections.

USAA Federal Savings Bank is based in San Antonio, Texas. It has been indexed with the FDIC since 1983 and is covered by certificate number 32188. The rating for its soundness and safety remain to be very strong. Bankrate.com issued 4 stars while BauerFinancial stamped their report with 5 stars. These financial ratings were based on their March 2009 data.

This best cd rate is not listed on the bank’s website. We got a tip from a reader and confirmed the offer with a bank representative.

There are other top cd rates which you can enjoy without having to maintain other accounts with the bank. There is a 24 month CD that earns 2.47% APY; 48-month CD at 2.71% APY; and 60 month CD at 2.96% APY. These certificates require a $500 funding to open and have a ceiling of $90,000.

We were told by United Financial Bank of Florida that you can open an account by mail. This money in the bank deal is considered a local deal since it is a fairly small bank located in Lake Mary up north of Orlando.

The website does not detail anything about early withdrawal penalties and other factors which can affect the earnings of your deposit. It will be wise to inquire prior to signing up for anything.

This bank is a subsidiary of Ohio-based United Midwest Savings. The mother company also offers a similar special certificate of deposit deal for the Ohio market.

The financial ratings of the bank are a bit weak so it will be wise to stay under the FDIC limit. BauerFinancial stamped its report with 2 stars for soundness and safety. This was based on their September 2009 data.

The bank is covered by the FDIC with certificate number 32441.

12 months 1.65% APY
18 months 1.74% APY
2 years 2.09% APY
3 years 2.49% APY
4 years 2.74% APY
5 years 3.15% APY

One good news that we got about the certificate of deposit deals is that the bank has lowered their early withdrawal penalties to only 2 months of interest. This is very beneficial to consumers especially those who invest to take advantage of the highest cd rates of long term certificates.

Most banks and credit union still apply the 180 day interest as their penalties and some can cost you as much half of the earnings for a 60 month CD. Basically, when you have a 5 year CD and you decide to close it down prior to maturity, you still a decent earning that is comparable to other offerings in the market today.

Possible Catches

What could be the possible issued with the reduced early withdrawal penalties of Ally Bank on their CDs? First, any early withdrawal can be refused by the bank. We do not see this in the disclosure page of Ally but make sure that you read the fine prints of any bank deals.

Second, it will take you some effort and a good deal of time to close a CD. Our readers reported that they encountered delays when they tried to close their Ally certificates of deposit early. We asked the CSR on how we go about it when closing a CD, he said told us that you need to contact an Ally advocate to help you with the closure. It usually takes 5 business days for the bank to send the funds to your account via ACH. It can take a week or so if you ask for a check to be mailed to you. If you have a liquid account with Ally, you can ask them to transfer the funds to your savings and it will take one banking day.

Another down side of the Ally offers is that you cannot take out a partial amount. This means, that when you withdraw from the CD, you close the CD. It can be a good strategy if you open small certificates instead of injecting all the funds into one big CD account.

Withdrawal of interest from your Ally CD account can only be done in disbursement. You can not request for a one time big time give me my interest thing but instead opt for a yearly, quarterly, or monthly withdrawal of earnings.

Still, the lowering of the early withdrawal penalty is a good move for Ally Bank. It may be really beneficial when interest rates will jump up in the future.

Other good deals with Ally

Ally Bank still offers their No Penalty CD. It has a 9 month term which earns 1.24% APY. You can open an account by calling the bank, over the internet, or by mail. You can see the details of how you should go about it on the FAQ page of the bank’s website.

Account holders of the no penalty CD can takeout the funds after six banking days after opening or any time moving forward without having to worry about penalties. Again, the withdrawal is considered to be done in full amount.

Ally Bank is FDIC insured with certificate number 57803.

1 year 1.81% APY
2 years 2.07% APY
3 years 2.57% APY
4 years 2.83% APY
5 years 3.39% APY

The top cd rates can be enjoyed if you open an account with an initial deposit of at least $5,000.

The credit union also offers IRA Certificates with the following interest rates:

1 year 2.07% APY
2 years 2.32% APY
3 years 2.83% APY
4 years 3.09% APY
5 years 3.65% APY

You can purchase an IRA certificate for $4,000.

All share certificates may incur early withdrawal penalties. New CDs and renewed certificates compound their dividends on a quarterly basis.

The certificate of deposit rates are in effect as soon as the credit union receives your initial funding. You can apply online but some readers have reported that they were asked still to mail some documents to complete the process.

One good way to expedite the process is sign up for membership and then get the funds of your CD from your share savings account. One friend shared that he was able to open and fund the cd at the same day by going to a local credit union service center.

Melrose Credit Union practically accepts everyone who wants to join because it has an open charter. By the way, one of our readers warned us that the credit union did a hard credit pull when he opened an account.

Melrose Credit Union has excellent ratings from BauerFinancial and bankrate.com. Both issued 5 stars for performance, soundness, and safety based on their June 2009 data.

• 3 years 3.00% APY
• 4 years 3.25% APY
• 5 years 3.50% APY
• 7 years 3.75% APY

These highest cd rates are offered through their money in the bank deal called PenFed Money Market Certificate.

If you are a Penfed CD account holder who enrolled in the CD reservation offered last year, you might get 50 basis points higher atop the current cd rates. Those missed the rollover program offered last November might get 25 basis points higher.

PenFed Certificate of Deposit

We scanned the info page about the certificates being offered by the credit union and we took note of some important things you must not miss:

• There is an early withdrawal penalty of at least 180 days of earnings for CDs with 3 to 5 year terms. It can be all the dividends if you take out the funds before 6 months after account opening.
• The same interest rates apply to IRA
• IRA CD holders who are at over 59 ½ years old can avoid most of the early withdrawal penalties.

There is no grace period upon maturity of the CD. If you decide to close a few days after renewal, you will only lose a couple days of interest which is actually not a worse scenario since most banks don’t pay interest rates during the given grace period.

Membership

People who do not have family or employer affiliation to the military can join the credit union through the National Military Family Association or NMFA. You can signup for both Pentagon FCU and NMFA at the same time online. You need to shell out an annual membership fee of $20 for the NMFA and you do not need to continue this membership to keep your active status with the PenFed. You are also eligible to sign up with PenFed if you are a volunteer or an employee of the American Red Cross.

About the PenFed

Interested individuals who want to take advantage of the cd rates but are not comfortable doing business online can drop by one of their branches. They have offices in Texas, Missouri, North Carolina, Colorado, New York, Virginia, Washington DC, Maryland, and New Jersey. They also have branches in Hawaii and Puerto Rico.

The financial rating of PenFed is not that impressive but still strong. They got a 4 star rating from BauerFinancial when it reviewed the organizations performance. Bankrate.com stamped 3 stars to their soundness and safety report.

Pentagon Federal Credit Union is one of the largest credit unions in the United States with about $13.4 billion in declared assets and about 900,000 members. It is covered by the NCUA through charter 227.

Another competitive interest rate is being offered for their 9-month CD which gains 1.50% APY. The number may not be that impressive but it is what you call attractive cd rates these days.

We called Astoria through their hotline 1800-278-6742 to inquire about their best cd rates. The customer service representative told us that you can open these certificates over the phone. What they will do is take your information and send you a welcome packet. They can lock the interest rate for 10 days which is just enough time for you to decide and send them the initial funds. You can send a check via post or just wire them the money (which will cost you $15 for incoming transfer fee).

The current interest rates are still posted on their website but they can change any time without notice. They usually update the website and the certificate of deposit rates every Tuesday.

Closing the CD account may be a hassle if you don’t live near one of their branches. You will be required to send instructions together with your passbook, then they will send you the check via postal mail. There is no option for a wire transfer to send the money.

The certificates of deposit are available nationwide. Liquid accounts like the checking and savings account are not offered nationwide. Unlike other banks, you don’t have the option to transfer your funds from the CD to any of your liquid accounts to avoid mailing of the check.

If you decide to open an account, the easiest way is still dropping by one of their branches. They have a good network of offices operating in New York. They have offices in Westchester, Suffolk, Nassau, Queens, and Brooklyn.

The financial ratings of Astoria Federal Savings are mixed. Bankrate.com issued 2 stars for performance while BauerFinancial stamped 4 stars on their soundness and safety report. Both of these figures were based on their September 2009 financial data.

The bank is covered by the FDIC with certificate number 29805.

The Navy Federal Credit Union offers competitive interest rates for their long-term certificate of deposit deals. The highest CD rates are the following:

5 years $1,000 minimum deposit 2.85% APY
5 years $20,000 minimum deposit 3.00% APY

5 years $100K minimum deposit 3.15% APY

7 years $1,000 minimum deposit 3.85% APY
7 years $20,000 minimum deposit 4.00% APY

The seven-year money in the bank deal is only available as Share, IRA, and ESA certificates. The current interest rates are still posted on the credit union’s website as of February 8.

Navy FCU also has an attractive 18-month CD which has the top cd rate of 1.65% APY with an opening requirement of $10,000.

Another good deal is the 30-month CD earning 2.75% APY. This one requires an $18,000 initial deposit.

They also have the special CD offerings called EasyStart Certificate which only requires $50 to open earning 3.25% APY on a one year term. Take note though that this has a small cap of $3,000 and several other requirements to go through. It is also limited to one EasyStart CD per member.

If you have questions about their products and services, you can contact them through 1888-842-6328. You can reach them collect through 1703-255-8837 if you are overseas.

Membership to the Navy FCU is not that very easy. The organization expanded its membership to the members of the Army, Air Force, and the Marine Corps back in 2008 so it will be easier to get in if you have connections from these branches of the service. You can visit their website to learn more about the details on how you can sign up. There is no easy way for people without connection to the service to join the credit union.

The credit union has branches spread across the United States and the world. Navy Federal Credit Union is covered by the NCUA charter number 5536. It is considered as the biggest credit union in the U.S. Its assets amount to about $38.7 billion and a member base of more than 3 million people.

The other money in the bank deals has the following interest rates:

Term           $500 to $2,499     $2,500 to $24,999     $25,000 to $99K
6 months             n/a                   1.21% APY                   1.31% APY
1 year                 1.42% APY          1.47% APY                   1.52% APY
2 years               2.07% APY          2.12% APY                   2.17% APY
3 years               2.43% APY          2.53% APY                   2.58% APY
4 years               2.69% APY          2.79% APY                   2.84% APY
5 years               3.15% APY          3.25% APY                   3.30% APY

These cd interest rates are posted as of February 8 but may change any time. It will be best to visit their website or call the bank for the latest figures.

The credit union is still offering the add-on certificates of deposit. The 1 year add-on CD requires a minimum opening balance requirement of $500 and has a current interest rate of 1.52% APY. The 2-year add-on certificate has a 2.17% APY and also requires $500.

Details about the CD

Upon application for the certificate of deposit, you can fund your account via ACH when you apply online. You can also wire money to your share savings deposit and contact the credit union to open a CD for you. They also have shared branches which can accept your deposits.

The bank imposes early withdrawal penalties amounting to all dividends withdrawn for CD with terms of 6 months or less. CDs with six months or longer maturity dates, the penalty is at least equal to 180 days or less of earnings or all of the dividends of the amount withdrawn. They may also ask you to close the certificate in case you take out an amount and the balance falls below the minimum required of the certificate.

The credit union gives a 10-day grace period upon the maturity of the account. You can call the credit union and instruct them to roll over the funds to the existing cd, deposit the proceeds to a liquid account, or send the earnings to you as check.

Membership

Membership to the Northwest Federal Credit Union is basically via select employee groups. The credit union also accepts members from the American Consumer Council. The ACC does not collect any membership fee when you sign up. When you sign up for Northwest you can opt to join the ACC. The Northwest FCU requires a membership fee of $5. You can also use the website to open accounts like certificates of deposit.

The credit union has offices spread across Virginia. These branches are strategically located in Manassas, Herndon, Vienna, and Chantilly. The shared branches can also help you out with withdrawals, deposits, and other transactions with Northwest FCU.

Northwest Federal Credit Union is covered by the NCUA under the charter number 5500. This credit union is a large organization with assets amounting to about $1.7 billion and close to 100,000 members.