bank rates

CIT Drops Out As Co-Leader In 5-Year CDs

I suppose the good news is that the top nationally available rate on 60-month CDs is still the same as it was yesterday: 2.25% APY.

The bad news is that this top rate looks to be losing strength.

At the end of January, five banks were paying 2.25% APY on 5-year CDs.

Even better, two additional banks temporarily offered returns above that rate last month.

But today, CIT Bank – one of four remaining co-leaders of the term – cut its 5-year rate to 2.20% APY.

That leaves us with just three 60-month leaders on our CD Rates LeaderboardBarclays Bank, GE Capital Bank and Synchrony Bank.

CIT is the online consumer bank of CIT Group, a provider of financing to small and medium-sized businesses

It first raised its 5-year yield to 2.25% almost exactly a year ago and further increased it to 2.30% APY for six weeks in December and January.

CIT abandoning the co-lead, after Nationwide Bank did the same just over three weeks ago, is a troubling sign for the term.

As we reported two weeks ago, 60-month returns appear stuck at 2.25%.

Let’s hope that news from the Federal Reserve Board’s meeting next week can trigger some upward motion in these – and all – CD rates.

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