If you have been a frequent BankVibe reader recently then you are undoubtedly aware of our consistent mulling over the conundrum of, who offers the best certificate of deposit rates? Your local bank/credit union or one of the larger national banks?
The simple answer is, there is no definitive answer. Depending on where you live, you may be able to find phenomenal deposit rates offered right down the street or you may be better off investing in one of the large national banks.
After spending the last few weeks sifting through dozens of rates pages from dozens of various credit unions and local banks serving the northeast, the only conclusion we can come to is a state by state conclusion. For example, if you are searching for the best CD rates in Connecticut you have probably noticed that your local institution’s rates are less competitive than those offered by one of the national powerhouses. However, if you are searching for the highest CD rates in New York, you probably recognized that these local institutions will provide much better rates than those national banks.
I guess if we had to give you some form of definitive answer to decipher between investing in local banks vs. the national ones, we would say first, go to your local bank and check out their current rates. If they are less competitive than some of the national offers, simply see if your bank/CU can match that rate. Some BankVibe readers have suggested in the past that if you have been a long-time member or long-standing customer with your local institution they may be willing to provide you with a higher rate. However, if they are not willing to grant you this adjusted rate, you may want to compare CD rates available nationally to secure yourself a lucrative rate.
Northeastern state’s we’ve covered within the last 30 days: