bank rates

National 48-Month CD Rates: New Leader Offers 2.00%

Finally, some excellent news (well, relatively speaking) for one of the terms on our CD Rates Leaderboard.

After more than two months of declines for the top nationally available 48-month CD rates, newcomer Bay State Savings Bank has returned the lead to 2.00% APY for the first time since mid-February.

When we last wrote about this community bank – back in July – its CDs were only available to customers who could come into one of its suburban Boston branches.

But it has since implemented an online account opening system and, with it, a policy of allowing customers to open certificates of deposit from anywhere in the country.

That makes it eligible for our Leaderboard of the top nationally available bank certificates, and its 2.00% rate on 48 months moves it right to the leader’s slot.

We added 4-year certificates to our lineup of national bank yields that we track every business day back in August, when E-Loan was paying 2.00% APY.

In the coming months, a couple of additional banks joined the lead at that rate.

But since February, it’s been going mostly downhill, dropping to 1.91%, 1.87% and, most recently, as low as 1.85% APY.

In fact, yesterday’s leader at that rate, KS StateBank, this morning dropped its yield, which would have further lowered the national 48-month lead to 1.80% APY.

Although Bay State Savings is new to our Leaderboard, it is anything but a new bank. Indeed, with an established date of 1895, it may very well be the oldest bank in our CD rankings.

The bank earns an acceptable three out of five stars from Bankrate’s Safe & Sound ratings system and, as with all banks we report on, is insured by the FDIC.

In addition to offering its deposit products online, Bay State Savings operates six Massachusetts branches in Worcester, Holden and Auburn.

One word of caution on this 4-year certificate: its early-withdrawal penalty is severe, assessed at two years’ interest should you cash out early. So this CD is best for those with high confidence of holding the deposit to maturity.

A minimum investment of $1,000 is required.

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