bank rates

5.00%+ APY CD Rates Are Back!

While doing my daily routine of checking the stock market (bloody!) & interest rate news, I noticed that a few banks were advertising 5.00%+ CD rates.

Indeed, there are now a handful of banks that offer 5.00%+ 5 year CD rates and even a few 5.25% rates for 5 year jumbo CDs.

I pulled the latest national averages for 5 year CD rates (source:Bankrate.com), and it looks like long term CD rates are in a very healthy uptrend ever since the Federal Reserve stopped cutting the Federal Discount Rate.

CD rates and MMA / savings rates should continue to increase. As mentioned in a previous article, futures traders are predicting a 100% chance of a 0.50 rate hike by October 2008.

Good news for savers, bad news for those shopping for a loan.

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Comments (19)
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19 Existing Comments
  1. Dean said:
    on July 9th at 10:00 am

    If anyone has a AAA account, they can log on, and you will find a 5year cd with 5.17%, and NO MINIMUM BALANCE

    surprised me, check it out!

  2. Concerned American said:
    on July 9th at 10:31 am

    What is AAA?

  3. Lee said:
    on July 9th at 05:02 pm

    Automobile Club of America is refer to as AAA

  4. Brad said:
    on July 9th at 05:41 pm

    If you have the money to not touch for 5 years, seems good.. However, not sure what rates are going to look like 2 years from now.. Once Big Ben decides to fight inflation a quarter point every other meeting doesn’t seem out of whack, so we could be at 5% in the not-too-distant future.. At which time the online funds would probably be 6-7%.

  5. Peggy said:
    on July 9th at 06:24 pm

    Five years is a gamble which I really haven’t been willing to take since the 70’s when I had money in a 5 year 12% account. I’m sorry I also am old enough to remember when a regular savings account earned 5% all the time. It was the standard rate wayyyyyyyy back when.

  6. Peggy said:
    on July 9th at 06:25 pm

    PS. I banking that Brad is going to be right. I think I’ll wait until after the election to see how things look.

  7. Bill Fold said:
    on July 9th at 08:41 pm

    In my area there are a few local FSB’s offering 5% or slightly above on free checking/e-bank accounts on amounts up to 35K at one bank and 50K at another. (One other stingy bank gives you 5% on first several hundred dollars deposit, obviously not worth it). There are restictions/requirments like using your debit card 10x/month, direct deposit/ACH debit each month, etc but nothing too bad.

    Trouble is these great offers are not listed on Bankrate or this site. Are there more of these offers out there, and how do I find them?

  8. yoko said:
    on July 10th at 11:08 pm

    Looking for somewhere else to look some more?….
    check http://www.bankingmyway.com
    Wachovia offering 5yr @5.25%, 4yr @5.15%….. 1yr @4.25%, 7mon.4%

  9. J said:
    on July 11th at 04:34 pm

    If you open the Wachovia CD or already have a Wachovia account, you can get a credit card from them with 0% apr for 12 months http://www.wachovia.com/personal/page/0,,11_10104,00.html
    Additionally, it looks like they waive late and overlimit fees

  10. mike said:
    on July 22nd at 05:46 pm

    http://www.bankofamerica.com

    7month CD for 4.11% online only. min dep of 10k

  11. Jean said:
    on July 25th at 04:47 am

    WaMu is offering 8 months cd for 4.25%..just a month more..min is only 1 k

  12. Andreas said:
    on July 25th at 06:56 am

    WaMu CD at 4.25% for 8 or 12 months, $1000 min, online only. Not bad for now!

  13. Andreas said:
    on July 25th at 06:59 am

    Sorry, same comment twice… (I didn’t reload the website between first opening it 2 hours ago and finally reading it and posting…)

  14. J. Wu said:
    on July 27th at 06:12 pm

    Yes

  15. mary jaritt said:
    on September 5th at 02:40 pm

    is it safe to buy an ita over the internet? can I rollover and ira via the internet?

  16. Jen said:
    on September 6th at 10:59 pm

    WaMu is offering 5% apy for 12 and 13 months cd.

  17. angel said:
    on September 15th at 08:49 pm

    if a rate is 4.25..how much do u win after he cd has matured?

  18. professor said:
    on September 26th at 07:00 am

    I got 7.50 apy in June on a ten year cd

  19. professor said:
    on September 26th at 07:01 am

    and I just did 4 five year cds at 77k at discover, cap one, 53 and wachovia
    5.1-5.35apy