bank rates

60-Month CD Rates: Seeing Some Erosion

pink piggy bankWe’re paying careful attention to a couple of key pieces of data when it comes to 60-month CD rates.

The first is the continued erosion of the average rate banks across the country pay. The second is a noticeable trend toward rate cuts among the banks we’re tracking for our CD Rates Leaderboard.

We saw nearly a dozen rate cuts over the past month from top banks like Barclays, EverBank and Doral Bank Direct. The cuts mean we’re moving further away from a 2% APY certificate of deposit.

At the beginning of April, there were five nationally available deals that paid at least 1.70% APY; today there are just three.

As for the average 60-month CD rate, it’s fallen to a record-low 0.79% APY. The average rate has fallen more than a tenth of a percentage point since the beginning of 2013, according to our weekly survey.

Chart showing the average and top 5-year CD rates 2012-2013

The top nationally available deal comes from Green Bank (www.greenbank.com), an eco-friendly bank with 12 locations in Texas. It pays 1.85% APY with a $1,000 minimum deposit.

Barclays (www.banking.barclaysus.com), which is the online American operation of the big British bank, pays 1.75% APY and has no minimum balance requirement.

And CIT Bank (www.bankoncit.com), the online consumer bank of CIT Group Inc., which offers financing to small businesses and middle-market companies, pays 1.70% APY with a $1,000 minimum deposit.

Five banks pay 1.60% APY:

Bank of Internet (www.bankofinternet.com), a San Diego, Calif.-based online bank, which requires a $1,000 minimum deposit.

First Internet Bank of Indiana (www.firstib.com), an online bank located in Indianapolis, which requires a $1,000 minimum deposit.

GE Capital Retail Bank (www.gecrb.com), an online bank that is a subsidiary of GE Capital Corp., the financial services unit of the manufacturing giant, requires a $25,000 minimum 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.

NexBank (www.nexbank.com), which is a division of NexBank Capital Inc., has two branches in the Dallas area and requires a $10,000 minimum deposit.

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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