A reader emailed me today about a great 12-month CD deal from the First National Bank of St. Ignace. The bank is paying 1.51% APY on a 12 month CD for balances over $10,000. The average 1-year CD rate according to BestCashCow is 0.60% APY. But to make the deal even better, the bank allows you to withdraw any funds above $10,000 as many times as you want, within reason. So, you get a guaranteed good rate of 1.51% APY and you have the flexibility of pulling money from the CD if you need it for expenses or simply want to reinvest it at a higher rate should rates go up - which they won't in the next 12 months.

First National Bank is also offering a 36-month CD paying 2.28% APY with a minimum balance of $100,000. It's not the top rate in the country but it's close and much higher than the BestCashCow average of 1.14% APY.

The CDs must be opened in person at one of the seven branches located on the upper Penninsula of Michigan. Interestingly, it seems that a lot of the top rates lately have been from banks located near the Canadian border. I wonder if the relatively robust Canadian economy has spillover effects close to the border? Research I did earlier in the year suggested that banks in the mid-West provided higher rates, possibly due to a booming commodity market.

The bank looks to be in improving financial shape. In 2006, the bank's Texas ratio was 53% but it has come down over the past five years to 21% today. That's close to the national average. The bank has $214 million in assets, up from $185 million in 2006.

For those of you unfamiliar with St. Ignace, as I was, it looks like a popular vacation destination in the Upper Penninsula.

If you don't think you'll make it to St. Ignace or the surrounding towns anytime soon to open a CD, there are tens of thousands of other rates in our database. Find the best CD rates in your local area by clicking through to our tables above.

Previous Weekly Rate Deals

• Oct 17, 2011 - Weekly Rate Deal - Navy Federal Credit Union Offering 3% APY 12-Month CD
• Oct 7, 2011 - Farmers & Traders Bank Takes Weekly Rate Deal for 3% APY 60-Month CD

Check back next Monday for a new bank deal. Email any deals you know about to ratedeal (at) bestcashcow.com. Feel free to also share them below. If you're a bank and have a great deal not listed on BestCashCow, register for access and add the deal to the site.

Have a good week!

This week, the banking deal we want to highlight is a 3% APY 12-month Special EasyStart CD offered by Navy Federal Credit Union. To understand how good a deal this is, the average 1-year CD rate according to BestCashCow data is 0.61% APY while the very best 12 month bank (not credit union) CD rate in our database is 2.01% APY. So a 3% 12-month CD is fantastic.

Of course, there are some limitations, some of them quite significant. The minimum balance is a relatively small $50 but the maximum balance is only $3,000. That means the most you can put into this CD is $3,000. To get the CD, deposit holders must also have Direct Deposit of at least $300 set up, a Navy Federal Checking Account, and a monthly automatic transfer of at least $15 into your Special EasyStart Certificate within 90 days of the certificate issue date.

The second big limitation is that you have to be able to join the credit union first before you can take advantage of the offer. Credit unions, unlike banks, often restrict membership. In the case of Navy FCU, the membership criteria is quite broad. You have to have some relation to the military, civilian or uniformed personal, or be a grandparent, child, or grandchild of someone who does. A complete eligibility list is here. Note: I called and was told that if you are a child or grandchild, parent or grandparent must have retired from the military, not just served in order for you to qualify.

Assuming you are eligible, then the CD might be for you. If you are married and have children you could open one for your spouse and each of your kids, boosting the total amount eligible to receive the 3% rate. After the 3% maximum, a one year Navy CD pays .85% APY with a $1,000 minimum balance. The CD looks particulary attractive to credit union members who already have an account and relationship at Navy and for whom meeting the EasyStart CD requirements would be relatively easy.

Navy Federal Credit Union is the largest credit union in the United States according to BestCashCow data with $44 billion in assets. It is NCUA insured. The credit union has a low Texas Ratio of 8.20%, normally a sign that the institution is sound.

If this CD doesn't look like it's for you, then seach for the best CD rates in your area by accessing our tables through the tab above.

Last week's rate deal was:

• Farmers & Traders Bank Takes Weekly Spotlight for 3% APY 60-Month CD

Farmers & Traders Bank Takes Weekly Spotlight for 3% APY 60-Month CD

Congratulations to Farmers & Traders Bank of Bancroft, IA for having the highest 60-month CD rate according to the BestCashCow rate tables. The bank offers a 5-year CD that pays 3.00% APY with a minimum balance of $5,000. Just a few short months ago, there were many banks paying 3% or over, but the list has whittled down to Farmers & Traders and a handful of credit unions scattered across the country.

Farmers & Traders was established in 1887. According to their website:

"Since 1887, Farmers & Traders Savings Bank has witnessed the peak of the nation's prosperity and it's deepest plunge in the worst depression the world has ever seen. Prior to the depression, there were three banks in Bancroft; however, the First National Bank and The Farmers State Bank did not survive. Farmers & Traders Savings Bank was one of the few banks in the county that did survive."

The bank's financials numbers look strong. The bank has a low Texas Ratio of 4.01% APY versus a national average of 20%. Return on equity is also higher than the national average while capitalization is a bit below. To view these numbers and their explanations, please click here.

The bank operates one branch and has $54 million in assets. Deposits are FDIC insured.

The bank only serves its community so if you don't live near Bancroft, IA you are out of luck. Still, there are thousands of local and online banks across the country offering competitive rates on a host of banking products.

Stay tuned next week for a new spotlight bank.