Best CD Rates in Hawaii vs. National Average

After digging through dozens of CD rate pages from banks and credit unions serving residents of Hawaii, we’ve found that the local institutions are noticeably lagging behind online banks in APY. Traditionally local banks and credit unions can offer better savings rates on deposits to local residents than larger banks – which makes Hawaii’s situation a bit odd.

For example, if you were to check out a couple older posts we’ve put together in the past compiling the best CD rates in Ohio or the best CD rates offered in Texas, you’ll see that the local institutions beat out the major ones by substantial margins. However, in Hawaii you’re likely to snag yourself better rates by locking in CD’s with online banks such as Bank of Internet, Discover Bank or Ally Bank.

Related: Check out the top 5 online savings accounts of 2010.

The only “local institution” serving noteworthy CD rates to Hawaiian residents is Colorado Federal Savings Bank who has a 12 month CD yielding 1.35% APY with a minimum deposit requirement of $5,000. Although Colorado Federal Savings Bank is headquartered in Colorado it serves local residents throughout the west coast (including Hawaii) so we figured we’d group them in with “local” Hawaiian banks.

Top 5 CD Rates available in Hawaii:

(Rates accurate as of Nov. 2010)

- Bank of Internet has a 12 month CD available online yielding 1.41% APY with a minimum deposit requirement of $1,000.

- Colorado Federal Savings Bank has a 12 month CD yielding 1.35% APY with a minimum deposit requirement of $1,000.

- Discover Bank has a 12 month CD available online yielding 1.35% APY with a minimum deposit requirement of $2,500.

- Ally Bank has a 12 month CD available online yielding 1.32% APY with a minimum deposit requirement of $1.

- GiantBank.com has a 12 month CD available online yielding 1.31% APY with a minimum deposit requirement of $2,500.

All of the institutions we’ve mentioned above have FDIC insurance up to $250,000. If you live in Hawaii and know of a better CD rate offered through your local bank or credit union, please share by leaving a comment.

Highest yielding money market account rates in Hawaii

Below are the highest yielding money market account rates serving citizens of the state of Hawaii.

If you are strictly after the best interest rate then you have a variety of options that will provide you with similar yields. The question you need to ask yourself is, “what type of minimum balance can I keep?” Most money market accounts provide a given interest rate based on a certain account balance. The more money you are able to keep in these accounts, the higher the interest rate you will generally receive.

After sorting through dozens of interest rate tables belonging to banks and credit unions serving the state of Hawaii, we have found that in many instances you will lock in more competitive rates with national institutions rather than local ones (if you are eligible). Before committing to one of the banks/credit unions listed below, you may want to browse through our national money market rates tables.

Keep in mind, money market rates are time-sensitive in nature, therefor you may want to refer to the date of this article for accuracy. As with all money market accounts, the interest rates are variable and are subject to change without notice.

Top 2 money market rates in Hawaii:

(click on the institution for more information)

• Wings Financial Federal Credit Union: Honolulu, HI. Money market account yielding 1.92% APY with a minimum balance of $5000. There are no monthly fees or surcharges related with this account. There are no minimum balances required, however anything under $5000 will not provide an interest rate. You are entitled to 2 free withdrawals per month, each withdrawal after will cost $20. Dividends are calculated using the average daily balance method. Membership is available to most people employed in, retired from, or whose job directly supports the air transportation of people or cargo, immediate family members of persons engaged in such activities, and family members (including household relationships) of a current credit union member. Contact (800) 692-2274
• Home Street Bank: Pearl City, HI. Money market account yielding 1.15% APY with a minimum balance of $10,000. Although Home Street Bank is headquartered in the pacific northwest they also serve consumers in Hawaii. Contact: (800) 719-8080

Both of the above institutions are federally insured by either the NCUA or FDIC. If you live in Hawaii and know of a better money market rate offered through your local institution, please share by leaving a comment.