Highest CD Rates in Indianapolis – Local vs. National Rates

Big banks have had a big customer retention problem lately stemming from the recent imposition of checking account fees. Following this ‘testing’ of new fees, local credit unions and community banks saw a flash flood of new customers which prompted the big banks to almost immediately take back the fees.

However, despite the reversal, the influx in new credit union accounts remain relatively high, so here at BankVibe.com we’ve been conducting regular survey’s of local bank rates and comparing them with those offered by both large national banks and online banks to help consumers decide on a potential switch.

What we’ve found is that in most cases local institutions have been able to provide the highest yields on bank deposits (especially long term ones), but depending on where you live you still may be better off (rate wise) to stick with a bank that can accept deposits nationwide.

In today’s survey we tracked the top rates provided by local institutions in Indianapolis, IN and compared them with the top rates available nationwide (from our CD rate database here).

Top 12 month CD rates available to Indianapolis residents:

Local – Merchants Bank of Indiana offers top 12 month rate at 1.00% APY.

Nationally Available – Popular Community Bank and CiT Bank both feature the top 12 month CD rate at 1.15% APY.

Top 24 month CD rates available to Indianapolis residents:

Local – Merchants Bank of Indiana offers top 24 month CD rates at 1.50% APY. Credit Union 1 comes in second at 1.20% APY.

Nationally Available – AloStar Bank of Commerce, American Express Bank, FSB, and Hudson City Savings Bank offer top 24 month rate at 1.30% APY.

Top 60 month CD rates available to Indianapolis residents:

Local – Kemba Indianapolis Credit Union offers the top 60 month CD rate at 2.40% APY. North Park Community Credit Union comes in second at 2.27% APY followed by Merchants Bank of Indiana and Centra Credit Union with a 2.25% APY and 2.21 APY, respectively.

Nationally Available – EmigrantDirect and Hudson City Savings Bank offer the highest 60 month rate at 2.0% APY.

Respectable CD Rates from Indiana Based Credit Union

We’ve been forwarded a few short term CD rates from a local credit union in Indiana which are beating the national average by a decent margin.

Currently, Encompass Credit Union, based out of Tipton County Indiana, has a 6 month CD yielding 1.00% APY and a 12 month CD yielding 1.26% APY with minimum deposit requirements of just $500.

We realize it’s hard to get excited about a sub-2-percent annual percentage yields but when you compare them to the national average they end up looking a little more lucrative. The national average for six month and twelve month CD’s sits at roughly 0.50% and 0.80% APY, respectively – meaning Encompass Credit Union’s 6 month CD rate is actually doubling the current national average for deposits with that term.

Unfortunately for many of us, however, these products are off limits as Encompass Credit Union serves those residing, attending school, or worshiping in Tipton or Clinton counties in Indiana. To see how these rates stack up against the best CD rates available nationwide, check out our top CD 6 month CDs or our top 12 month CDs from our database.

About Encompass Credit Union of Indiana:

ECU was originally established in 1953 by a group of employees working for Steel Parts Corp. They serviced the same group of people back then as they do today and, like most credit unions, are entirely not-for-profit. They pass along any profits derived from business back to their members in the form of lower loan rates and higher savings rates. Their board of directors are 100% volunteers and are not paid a salary. They’re a relatively small credit union with just three branches – Tipton, IN, Frankfort, IN and Elwood, IN.

Additional Deposit Products from ECU:

ECU’s short term CD rates are the only products that stand out from their deposit account listings. Their long term CD rates are more closely aligned with today’s national averages. Below is the complete list of CD rates offered from ECU (starting with their 2 year CDs).

- 2 year CD yielding 1.76% APY with a minimum deposit of $500 required.

- 3 year CD yielding 2.02% APY with a minimum deposit of $500 required.

- 4 year CD yielding 2.27% APY with a minimum deposit of $500 required.

- 5 year CD yielding 2.53% APY with a minimum deposit of $500 required.

*Rates accurate as of October 2011.

Best CD Rates in Indianapolis, IN: Top 3

Below are the highest yielding CD (certificate of deposit) rates available to the residents of Indianapolis, Indiana. The institutions we will cover all include the following cities in Indiana: Griffith, , Ft Wayne, Auburn, Carmel, Beech Grove, Roachdale, Evansville, Mishawaka, and South Bend. These come in the form of 6 month CDs, 12 month CDs and 24 month CDs. After sorting through dozens of rate pages by local community banks and credit unions serving the city of Indianapolis as well as Indiana, we found that for the most part, you will be able to receive slightly better rates with national institutions than with local ones.

Keep in mind interest rates are time-sensitive in nature, so you will want to refer to the date of this article for accuracy. To get the most CD current rates from national banks, compare CD rates nationwide.

How did we compile this list? As you are probably aware, higher CD rates tend to accompany longer maturities and since we did not want to strictly list long maturity CD’s we decided to list the deposit rates which beat the national average by the highest margins.

Best 6 month CD rates in Indianapolis, IN:

• Bank of Indiana National Association has a 6 month CD yielding 1.61% APY with a minimum deposit of $500 required.
• Centra Credit Union has a promotional 7 month CD yielding 1.50% APY with a minimum balance of $5000 required.
• Forum Credit Union also has a promotional 7 month CD yielding 1.50% APY with a minimum balance of only $500 required.

Best 12 month CD rates in Indianapolis, IN:

• Kemba Indianapolis Credit Union has a promotional 12 month CD yielding 10% APY! Unfortunately this comes with a minimum (and maximum) balance of $200. This is designed for new savers.
• Indiana Members Credit Union (out of Beech Grove, IN) has a promotional 15 month CD yielding 2.35% APY with a minimum deposit of $1000 required.
• Centra Credit Union has a 13 month CD yielding 2.0% APY with a minimum deposit of $5000 required.

Best 24 month CD rates in Indianapolis, IN:

• First Financial Bank has a 25 month CD yielding 2.50% APY with a minimum balance of $10,000 required.
• Hudson City Savings bank has a 24 month CD yielding 2.50% APY with a minimum balance of $5000 required. This is a national bank and can accept deposits from any state.
• Bank of Indiana has a promotional 21 month CD yielding 2.27% APY with a minimum deposit of $500 required.

If you’re looking for an online institution, you may want to browse through First Internet Bank of Indiana’s CD rates to compare against the offers above.

Highest yielding money market account rates in Indiana

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

If you are strictly after the best 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 Indiana, we have found that in most instances you will be able to lock in more competitive rates with some local institutions rather than national institutions, however these local banks and credit unions typically come with rather exclusive membership eligibility requirements. Before committing to one of the banks listed below, you may want to browse through our archive of best money market accounts.

Below, we have listed the top 2 banks and/or credit unions serving the state of Indiana which are offering the highest returns on their money market accounts. Keep in mind the national average for money market rates currently sits at roughly 1.17% APY (to put these offers in perspective).

Top 2 MMA (money market account) rates in Indiana:

(click on the institution for more information)

• Allegius Credit Union: Valparaiso, IN. Money market account yielding up to 2.27% APY depending on your balance. This account is set up in two tiers, the first holds an interest rate of 2.0% (or 2.02% APY) and comes with a minimum balance requirement of between $2,500 and $24,999. The second tier yields 2.27% APY, however, you must keep your balance above $25k. Allegius Credit Union has 5 locations throughout Indiana. They have branches in Hobart, Valparaiso, Chesterton, Burns Harbor and Michigan City. They also have a number of “partner credit unions” which you can conduct your banking through as well. These partner credit unions reside in the greater Fort Wayne and Indianapolis areas. To receive membership eligibility information contact: (219) 462-3558
• First Federal Savings Bank: Winimac, IN. Money market account yielding 2.02% APY with a minimum balance requirement of $50,000.  This account operates in five tiers. The first tier is based off of a balance of lower than $2,500 and only yields 1.0% APY. If your balance drops below $2,500 you will also incur a $5.00 maintenance fee. The second tier yields 1.26% APY and requires a balance of between $2,500 and $9,999. The third tier yields 1.51% APY and requires a balance of between $10,000 and $24,999. The fourth tier yields 1.76% APY and requires a balance of between $25k and $49,999. First Federal Savings Bank began in 1966 in the backroom of a neighborhood grocery store in Rochester, Indiana. They have since grown to a six-branch operation as of 2008.

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

High Interest Checking Account through 3 Rivers Credit Union Indiana

3 Rivers Credit Union of Indiana is currently offering an amazing interest rate on their checking accounts. As of this month customers can sign up for their “Epic Checking Account” which yields a 5.01% APY on all balances up to $25,001 (2.0% APY on all balances above $25k).

Make sure you meet the requirements for this high interest checking account or you will receive a pathetic rate of 0.25% APY on all balances.

Requirements for obtaining 5.01% APY checking account:

• actively enroll in E-Statements (you’ll want to do this anyway because rates are subject to change without notice)
• at least 10 VISA check card transactions each month (one direct deposit, automatic debit or Online Bill Payer payment each month)

3 rivers Credit Union’s high interest checking account also comes with free ATM usage nationwide up to $12.00 per month. In other words, if you are charged $2.00 per withdraw at a competing ATM, then make sure you only make 6 of these transactions per month or the rest of the fees are on you.