bank rates

Highest CD Rates Roundup For June 1: Returns of 2% Look Good Against Treasuries

Bringing you the very best CD rates from credit unions and local banks.
We’re truly in uncharted territory now.

The yield on 10-year Treasuries fell below 1.5% for the first time ever on Friday, closing the day at 1.47%.

That makes a pitiful return of 2% on a 5-year CD look pretty good.

This week’s big downturn in interest rates was driven by two factors:

  • Fears that the wheels are coming off the euro and the European economy as leaders fail to deal with everything from bank runs in Greece and Spain to record-high unemployment (11%) across the continent.
  • Today’s disappointing U.S. jobs report, which raised fears that our economy is being dragged down by Europe. Only 69,000 jobs were added in May, the weakest job growth in a year. That drove the unemployment rate up a tick to 8.2%, the first increase since last June.

As a result, investors around the world are selling stocks and stashing their money in the safest government bonds they can find.

How low can the 10-year Treasury go? Some economists say there’s no reason it won’t fall as far as the 10-year German bund, which saw its return drop to a record low 1.19%.

Today’s sell-off in the stock markets was the worst of 2012, erasing all of the year’s previous gains, and there isn’t much good news to tell you.

So if you’re looking for a safe port, you could do a lot worse than some of the new long-term CD deals we found this week from:

BBVA Compass, which is paying 2.00% APY on 5-year CDs to savers in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas.

Washington Federal, which is paying 2.00% on 5-year CDs to savers in Arizona, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington.

CorePlus Federal Credit Union, which is paying its members in Connecticut 2.15% APY on 5-year CDs.

You’ll find all 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 that you’ll always know what great deals are out there from credit unions and local banks.

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  1. Kathy at Bankaholic said:
    on June 22nd at 12:09 pm

    Washington Federal’s 5-year rate had dropped to 1.75% APY, but CorePlus has raised its 5-year rate to 2.25% APY.