Local CD Rates in Utah Leave Residents Dissapointed

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.

Lock-in Top CD Rates with Transportation Alliance Bank

Transportation Alliance Bank, based out of Utah, is an FDIC insured bank which can accept deposits nationwide either online or over the phone. Their CD rates are currently providing some of the top annual percentage yields on the market and only come with a minimum deposit requirement of $1000.

Brief History of Transportation Alliance Bank:

A quick look into Transportation Alliance Bank’s history shows that operating as a bank may have been somewhat of an afterthought to their holding company’s primary business. Originally established as an Industrial Loan Corporation in 1998, Transportation Alliance Bank is a wholly owned subsidiary of a diesel fuel company called “Flying J.” Flying J is one of the nations leading diesel fuel providers (founded in 1968).

Transportation Alliance Bank’s Current CD Rates:

(Rates accurate as of March 2011)

- 3 month CD yielding 0.20% APY with a minimum deposit of $1,000 required.

- 6 month CD yielding 0.40% APY with a minimum deposit of $1,000 required.

- 12 month CD yielding 1.26% APY with a minimum deposit of $1,000 required.

- 24 month CD yielding 1.36% APY with a minimum deposit of $1,000 required.

- 36 month CD yielding 1.92% APY with a minimum deposit of $1,000 required.

- 48 month CD yielding 2.22% APY with a minimum deposit of $1,000 required.

- 60 month CD yielding 2.28% APY with a minimum deposit of $1,000 required.

Transportation Alliance Bank also has these same CD rates available for IRAs (Individual Retirement Accounts).

If you believe these rates to be out of date, you can check out Transportation Alliance Bank’s current rates here.

Best CD Rates in Salt Lake City, Utah: Top 3

Below are the highest yielding CD (certificate of deposit) rates available to the residents of Salt Lake City, Utah. 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 Salt Lake City as well as Utah, we found that for the most part, you will be able to receive slightly better rates with national institutions than with local ones.

Highest yielding money market account rates in Utah

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

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 Utah, we have found that in some 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 rate 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 Utah:

(click on the institution for more information)

• ADB Bank: Cedar City, UT. Money market account yielding 1.60% APY with no minimum balance required. This account also comes with no monthly fees, free online banking, free online bill pay, free checks, and free check imaging. Allegiance Direct originally commenced business in June of 2001 as a finance company to provide commercial customers of insurance agencies the opportunity to finance their insurance premiums. This financing allows the customer to spread the expense of insurance premiums over time so that such expense may be funded out of its operating income. ADB now offers a wide range of loan and deposit products. Contact: (800) 549-4828
• Transportation Alliance Bank: Ogden, UT. Money market account yielding 1.20% APY with a minimum deposit of only $25. The interest on this account is compounded monthly and credited monthly. Like most MMA’s, you are entitled to 6 withdrawals per month (3 of which can be made through check). Transportation Alliance Bank, Inc (TAB) was originally established as an Industrial Loan Corporation (ILC) in 1998. TAB’s mission is to offer a full line of innovative financial services to the professional trucking market – to both individual drivers and fleet motor carriers. TAB also offers financial products to other customers of Flying J, including RV’ers and other interstate highway travelers.

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

Best CD rates in Utah: Top 3

Below are the highest yielding CD rates available to the residents of Utah. These come in the form of 13 month CDs, 48 month CDs, and 60 month CDs. After digging through dozens of rate pages by dozens of banks and credit unions serving the state of Utah, we found that in most cases you can receive more competitive rates offered by national institutions rather than local ones. (Compare CD rates).

Although the financial institutions we’ve listed below do the majority of their business in Utah, they still may have eligibility requirements which may prevent you from joining (even if you live in Utah). Contact a representative to see if you can take advantage of their products.

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.

Top 3 CD rates: Utah

(clicking on the institution will bring you to their rates page)

• First Utah Bank: Salt Lake City, UT. 13 month CD yielding 2.27% APY with a minimum balance of $500. The national average for 12 month CDs sits at 1.65% APY. First Utah Bank’s deposit rates are associated with a range of maturities. For example, a 12-23 month CD will all yield the same 2.27% interest rate. They have 7 branch locations and dozens of ATM machines throughout the Utah. The branch locations reside in Sandy City, Salt Lake City, Riverton and West Valley City. They also offer unique savings accounts designed for both seniors and young or new savers.
• Far West Bank: Springville, UT. 48 month CD yielding 3.05% APY with a minimum deposit of $1,000. Far West Bank is a regional bank which is headquartered in Spokane, Washington but has regional headquarters in South Jordan, Utah. They are a publicly held bank and trade on the NASDAQ stock exchange under the ticker AWBC. They were founded in 1975 in Provo, Utah and were since acquired (in 2007) by American West Bank. They have over $2 billion in assets and roughly 67 locations in Utah, Idaho and Washington.
• Summit One Credit Union: Ogden, UT. 60 month CD yielding 3.25% APY with a minimum deposit amount of $1,000.  Although this is one of the better local CD rates in Utah, you will most likely be able to find better rates with a larger national bank. Summit One Credit Union has fairly strict membership eligibility requirements. You must live, work, worship or attend school in Weber, Morgan or Davis counties. You may also join if you have family members whom fall within that criteria. Summit One CU was originally founded in 1954 under the name Dee Hospital Credit Union and served doctors, nurses and hospital administrative staff. However, in 2006 they broadened their membership acceptance and changed their name to Summit One.

All of the above institutions are federally insured by either the FDIC or the NCUA and your deposits are secure up to $250,000. If you live in Utah and know of a better rate offered by your local institution, please share by leaving a comment.