Although all long-term CD returns have had a tough time of it since the Federal Reserve raised rates in December, none have been hit harder than 60-month yields.
The day before the Fed’s hike, the top nationally available 5-year return from the banks on our CD Rates Leaderboard was 2.45% APY.
Additionally, you could earn 2.20% or better from a list of nine national banks.
Today, only four are on that list, and the top national rate has sunk to 2.27% APY.
A good chunk of that attrition occurred this morning, when three banks that were paying 2.20% all lowered their 60-month yields to 2.10% or below: Barclays, Discover and State Farm Bank.
One minor consolation is that we gained a new co-leader in the term, with State Bank of India-New York raising its 60-month return from 2.22% to 2.27% APY this morning to join First Internet Bank in the top spot.
But at that yield, and with a shrinking list of contenders, it’s a dismal state of affairs for savers wanting to invest long-term.
As banks wait out the uncertainty surrounding when the Fed will next raise rates — and how often it will do so this year — the best bets are to stick to top-paying short-term CDs for now or seek out the best long-term deals you can find from credit unions and community banks.
Checking Bankrate’s extensive database of the best CD rates will always give you up-to-date information on the day’s best bank returns.
And for local offers, you can find dozens of potential options at our constantly updated roundup of the country’s best-paying credit union and community bank CDs.
The next hope we have for any assistance from the Fed is its rate-setting meeting on March 15-16. No one knows what the committee will decide, but 60-month yields could use any help the Fed can dole out.