When summer began, 4% CD rates were available at many banks and credit unions if you were willing to tie your money up for 60-months or longer.
That’s no longer the case.
We don’t know of a single bank that’s still paying 4% on 5-year — or even 7-year — certificates of deposit.
Although credit unions usually offer better CD rates than commercial banks, the pronounced difference we once saw has diminished over the past few months.
The rate sheets at many credit unions are remarkably — some might say depressingly — similar to those at most banks.
Only a few continue to offer 4% on long-term CDs.
If you belong to one of those credit unions — or are eligible to join — consider yourself very lucky.
Pentagon Federal Credit Union is paying 4.00% APY on a 7-year CD with a $1,000 minimum deposit. Membership is open to uniformed members of the military, family members, and defense related government and private employees. (Check here for a complete eligibility list.)
Hamilton Horizons Federal Credit Union is paying 4.00% APY on a 60-month CD with a $1,000 minimum deposit. Membership is open to anyone who lives, works, worships or attends school in Hamilton Township, New Jersey.
Montauk Credit Union, is paying 4.25% APY with a $2,500 minimum deposit on a 7-year CD. Membership is open to anyone, but new accounts must be opened in person at its office, 111 West 26th Street, New York City.
Police and Fire Federal Credit Union is paying 4.00% APY on a 60-month CD with a $500 minimum deposit. Membership is open to scores of public and private employers in the Philadelphia area. (Click here to see the complete list of eligible employers.)
You can use our extensive database of CD rates to compare these offers with the best deals from scores of banks.