bank rates

5-Year CDs: 2% APY Remains Elusive

picture of a yield signSince the beginning of 2013, the lead 60-month CD rate on our CD Rates Leaderboard has spiked past 2% twice, reaching its highest mark in more than a year.

But both times the boost was short-lived, and the best nationally available deals have settled back to rates consistently held by a handful of banks.

The takeaway: We don’t believe you should expect higher rates to last until they’re offered by more than a few outliers.

Term leader The National Republic Bank of Chicago (www.nrbchicago.com), which has two branches in Chicago, was the latest bank to increase its rates past 2%, to 2.02% APY.

It now pays 1.87% APY and requires a $1,000 minimum deposit.

Two banks come in a close second with a 1.85% APY offer:

Barclays (www.banking.barclaysus.com), which is the online American operation of the big British bank, has no minimum balance requirement.

Green Bank (www.greenbank.com), which is an eco-friendly bank with 12 locations in Texas, requires a $1,000 minimum deposit.

And two banks pay 1.70% APY:

CIT Bank (www.bankoncit.com), the online consumer bank of CIT Group Inc., which offers financing to small businesses and middle-market companies, requires a $1,000 deposit.

Nationwide Bank (www.nationwide.com), which is an online bank owned by Nationwide Mutual Insurance Company and its affiliates, requires a $500 minimum deposit.

The average annual yield large banks and thrifts are offering for the 60-month term is a record-low 0.82% this week.

These banks qualify for our rankings by imposing no restrictions on who can buy their certificates of deposit, either online or through the mail.

You can compare these returns with the best CD rates from scores of banks in our extensive database.

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