In what qualifies for good news these days, the average 5-year CD rate offered by banks and thrifts has hit a three-month high.
Our weekly survey shows the average 60-month CD now pays 0.80% APY. The rate last hit that mark in late October 2013.
But it’s been the better part of a year since the average rate was higher than it is today.
The chart shows what we’ve been saying for a while now. After years of collapsing CD rates, we finally hit bottom in 2013. And though we “celebrate” today’s rate, the chart shows we continue to scrape along that bottom waiting for an improved economy and the actions of the Federal Reserve to help return yields to a more reasonable spot.
Of course, the best nationally available bank CDs have already started to recover. But we appear to have hit a plateau there.
Since the top nationally available CDs bottomed out in May 2013 at 1.75% APY, they’ve increased by more than a third of a percentage point. But since hitting 2.15% APY on Dec. 15, there’s been little movement.
It’s been about 1½ months since we’ve had a significant change in the top rate. With 5-year Treasury rates lower than they have been in recent months, we may not see much more upward movement to come. (Remember Treasury yields and average 5-year CD rates are closely correlated.)
Highest CD Rates
This week, we added two deals to our list of the highest CD rates from credit unions and local banks:
- Security First Credit Union (www.securityfurstcu.com) in Texas pays 1.78% APY on 36-month CDs and 1.36% APY on 24-month CDs with a $1,000 minimum deposit. Credit union membership is available to residents of the four counties that comprise the Rio Grande Valley: Cameron, Hidalgo, Starr and Willacy.
- Spokane Teachers Credit Union in Washington State (www.stcu.org) pays 2.02% APY on 30-month CDs with the $25,000 minimum deposit. Credit union membership is open to residents of Washington or in the northern Idaho counties of Benewah, Bonner, Boundary, Kootenai, Latah or Shoshone, as well as their relatives.
As for changes on our existing list, we cut expiring deals from Credit Union West in Arizona, First Imperial Credit Union in California and Southwest Airlines Federal Credit Union.
Pentagon Federal Credit Union lowered its rates (unless you have a maturing CD at the credit union).
And for the second consecutive week, Suntide Credit Union in Texas cut CD rates: 24-month CD rates were cut from 1.50% APY to 1.35% APY and 12-month CDs were cut from 1.25% APY to 1.15% APY.
Both of those credit unions remain on our list.
You’ll find the top-paying deals clearly marked on our highest CD rates page, showing where they are available, with a quick link back to the original post, which includes more information on the institution and its requirements.
We’ll update this page weekly, so you’ll always know what great deals are out there from credit unions and local banks.