If you have served (or are serving) in any of the military agencies (marine core, army, navy, etc) and are in the market for federally insured certificates of deposits I would certainly apply with Navy Federal Credit Union. They offer their members rates that often double current national averages, plus if you’re funding these accounts with new money (aka you’re a new member) you can likely receive even higher rates.
In most cases the CDs can be used in IRA accounts as well.
Special CD rate offers for new money (NFCU)
6 months Money Market Certificate (Share and IRA) – 2.75% APY with a minimum deposit of $2,500. If you deposit $10,000 they will up your APY to 3.0%. This is available for both a regular CD or as an IRA CD, meaning you may receive dividends tax free, as you would with other investments in your IRA account.
1 year Special Share Certificate of Deposit – 3.75% APY with a minimum deposit of $25.00. Currently the national average for one year CD’s is 2.07% APY with the highest yielding, nationally available, 1 year CD rate being 2.85% offered through GMAC bank (according to bankrate.com).
Special 30 month IRA CD – 4.35% APY! With this account you will need a minimum deposit of $15,000. The best nationally available rate for 5 year CD’s doesn’t even compare with this rate (let alone 30 month maturities). It pays to serve your country!
Our only bone to pick with Navy Federal Credit Union is that they haven’t broadened their acceptance beyond the military personel. Their products are always featuring some of the highest rates on the market and don’t disappoint this time around. As far as savings rates as a whole are concerned, rates are likely to continue heading downward as the FED lowers key rates in an attempt to stimulate borrowing and growth. We would recommend locking in a 5 year deposit if possible to hedge against future falling yields.
If you know of any rate that can compete with these (highly unlikely) let us know about it by leaving a comment!