Local CD Rates in Utah Leave Residents Dissapointed

December 18, 2011 No Comments »

Whenever we do our regular round-up of locally based bank and credit union CD rates coming from individual states, we’re always impressed at how depressingly low Utah’s are.

The top 12 month CD rate from a Utah based credit union, for example, is currently featuring yields of just half of what the top 12 month CD rates can provide nationally. This awkward trend of local rates (especially those from credit unions) lagging behind the top nationally available rates is one that is becoming increasingly more common.

In early 2011, the top locally based savings rates always had a leg up over their nationally available counterparts. This however, is growing less common as CD rates continue to dwindle.

Top CD Rates in Utah (Local Institutions Only):

*Rates accurate as of December 2011

- Gunnison Valley Bank based out of Gunnison, Utah, has a 12 month CD yielding 0.80% APY requiring a minimum deposit of at least $1,000.

- Delta Community Credit Union based out of Salt Lake City, Utah, has a 12 month CD yielding 0.65% APY with a minimum deposit requirement of $1,000.

-  Western Federal Credit Union based out of Salt Lake City, Utah, has a 12 month CD yielding 0.61% APY with a minimum deposit requirement of $1,000.

Top 12 Month CD Rates Available Nationwide (Utah Residents Included):

*Rates accurate as of December 2011

- CiT Bank leads the pack on 1 year CD’s with an APY of 1.15% and a rather steep minimum deposit requirement of $25,000.

- Doral Bank ties for first place on 1 year CD rates with an APY of 1.15% and a much more manageable deposit requirement of just $1,000

- NewDominion Bank comes in third with an APY on their 1 year CD’s of 1.05% and a minimum deposit of $1,000.

Although this phenomena of nationwide institutions beating out local ones on interest rates is certainly not common throughout the country, there are a growing number of states losing their edge – and we find the timing of this to be quite disappointing.

In today’s banking environment many consumers feel a strong disconnect with their bank (especially if they bank with one of the large national powerhouses) – and smaller community based banks and/or credit unions are, by contrast, being perceived in a favorable light. Here at BankVibe.com we feel that if credit unions were able to up their game on the interest rate front just a tad it may be all that’s needed to form a tipping point of consumers turning over to smaller locally based banking institutions.

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