bank rates

5-Year CDs: 6 Banks Now Pay At Least 2%

Chart showing a blue arrow moving up.It wasn’t that long ago when 1.60% APY was considered a competitive 60-month CD rate. (We’re talking June of this year.)

Thank goodness those days are gone.

Now the top six nationally available 5-year CDs all pay at least 2% APY.

In the last month alone, that number has grown from three, and the very best rate has topped out at 2.10% APY.

That offer belongs to the New York branch of the State Bank of India (www.statebank.com), an FDIC-insured branch of India’s largest bank that operates independently of other U.S. branches. You’ll have to make a minimum deposit of $5,000 to purchase this certificate of deposit.

EverBank (www.everbank.com), which has 14 branches in Florida, pays the second-highest rate of 2.01% APY and requires a $1,500 minimum deposit.

Chart showing average 60-month CD rates vs. the best nationally available offer.

Four other banks pay 2.00% APY:

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

National Bank of Kansas City (www.bankofkc.com), which has two branches in Kansas and four in Missouri. It has a $5,000 minimum deposit requirement.

Salem Five Direct (www.salemfivedirect.com), the online division of Salem Five Bank, which has 23 branches just north of Boston. It has a $10,000 minimum deposit requirement.

State Farm Bank (www.statefarm.com/bank), the online bank of the insurance company. It has a $500 minimum deposit.

The average annual yield large big banks and thrifts are offering for the 60-month term is 0.79% 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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