bank rates

Are 5-Year CD Rates Gaining Momentum?

We crowned a new 60-month CD leader last week, marking just the second rate change at the top of this term in 2014.

Overall, we’ve seen a dozen rate changes among CDs that pay at least 2% APY. And there are now 13 banks that pay at least 2% APY on 5-year CDs.

The top offer on our CD Rates Leaderboard now pays 2.28% APY – the highest nationally available bank rate we’ve seen since 2011.

Northwest Community Bank (www.nwcommunitybank.com), which is a community bank with six branches in Connecticut, offers that top rate with a $1,000 minimum deposit for in-state savers and a $5,000 minimum deposit for savers elsewhere.

That’s more than a tenth of a percentage point higher than the former lead rate of 2.15% APY, which the term’s most recent co-leaders continue to offer:

Barclays (www.banking.barclaysus.com), which is the online American operation of the worldwide British bank with more than $2 trillion in assets, has no minimum balance requirement.

iGObanking (www.igobanking.com), the online division of Flushing Savings Bank, which has 17 locations in New York, requires a $1,000 minimum deposit.

chart showing the top and average 60-month cd rates

Two banks pay 2.10% APY:

Dime Savings Bank of Williamsburg (www.dime.com), which has 25 branches in the New York City area, requires a $500 minimum deposit.

GE Capital Retail Bank (www.gecrb.com), one of two online banks, each with its own FDIC insurance, that are subsidiaries of GE Capital Corp., the financial services unit of the manufacturing giant, requires a $25,000 minimum deposit.

Three banks pay 2.05% APY:

GE Capital Bank (www.gecapitalbank.com), which is the other bank that’s a subsidiary of GE Capital Corp., requires a $500 minimum deposit.

The New York branch of the State Bank of India (www.statebank.com), the FDIC-insured New York branch of India’s largest bank, which operates independently of other U.S. branches, requires a $5,000 minimum deposit.

State Farm Bank (www.statefarm.com), which is the online bank of the insurance company, requires a $500 minimum deposit.

Another former leader, EverBank (www.everbank.com), which is primarily an online bank with 14 branches in Florida, has changed its rate four times alone and now pays 2.04% APY. It requires a $1,500 minimum deposit.

Virtual Bank (www.virtualbank.com), the online division of Sabadell United Bank, which has 23 branches in Florida and is owned by Banco Sabadell, Spain’s fourth-largest bank, pays 2.02% APY and requires a $10,000 minimum deposit.

Three banks pay 2.00% APY:

BBVA Compass (www.bbvacompass.com), which is a major regional bank with 688 branches in the Sun Belt, requires a $500 minimum deposit.

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 minimum deposit.

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

The average annual yield that large banks and thrifts offer for 60-month CDs is 0.80% APY.

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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