Return On Best 24-Month CDs Falls To 2%

It’s a sorry situation when the best 24-month certificates of deposit are barely paying 2%.

That’s less than the average 2-year CD was paying two summers ago.

So if you have one of those CDs maturing over the next couple of months, you’ll have to make some smart choices or see the return on that investment drop dramatically.

The best nationally available rate is 2.02% APY with a $5,000 minimum deposit from Melrose Credit Union, located in Queens, N.Y.

Unlike most credit unions, Melrose has an open charter that allows all U.S. residents to join, regardless of where they live or what they do for a living. As a result, this rate is available online to all savers.

Four banks still offer 2.00% APY:

American Express Bank, the credit card company’s online bank, with no minimum deposit.

First City Bank, which has five branches in Fort Walton Beach, Fla., and requires a $1,000 minimum deposit.

Bank of Internet, an online bank based in San Diego, Calif., which requires a $1,000 minimum deposit.

Tennessee Commerce Bank, which has a single location in Franklin, Tenn., and requires a $2,500 minimum deposit. This bank recently stopped posting CD rates on its Web site. You can call for rates at (877) 684-2265.

Compare these returns with the best CD rates from scores of other banks in our extensive database.

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