bank rates

Shining Moment Dims For 5-Year CD Rates

Oh, 3%, we hardly knew ye.

Top 60-Month CDs now below 3%When Sovereign Bank – owned by Spanish financial giant Santander – bounded back onto the CD Rates Leaderboard Feb. 16 with 3% APY rates, we were giddy with excitement.

Then, when Kaiser Federal Bank, which has nine branches in southern California, matched that rate, we were, well, even giddier.

But, alas, our good mood lasted just six days.

Sovereign Bank dropped its rate first, on Feb. 28, to 2.8% APY with a $500 minimum deposit.

Kaiser Federal Bank followed nine days later and is now offering 2.75% APY with a $10,000 minimum deposit.

That makes Melrose Credit Union once again the leader in nationally available 60-month CDs at 2.93% APY. Melrose has a single office in New York City and requires a $5,000 minimum deposit.

You can still find local banks and credit unions offering 3% APY CD rates, like at the First National Bank of Long Island in New York.

And we hope it won’t be months again before we see 3% APY offered nationally.

Besides Kaiser Bank, three other banks are offering 2.75% APY:

Danversbank, which has more than 30 branches in the Boston area and requires a $500 minimum deposit.

Salem Five Bank, which has 22 branches just north of Boston and requires a $10,000 deposit.

Astoria Federal Savings, which has 85 branches in Brooklyn, Queens, Nassau, Suffolk and Westchester counties and requires a $500 minimum deposit.

These banks and credit unions qualify for our rankings by imposing no restrictions on who can buy their certificates of deposit, either online or through the mail.

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

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Comments (3)
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3 Existing Comments
  1. Monica Mack said:
    on March 16th at 09:41 am

    Last year before rates plummeted, I tried unsuccessfully to open account with Melrose Credit Union, which I think highly of. My funds, sadly, are in the name of a revocable living trust (grantor trust, I am trustee, bank is successor trustee). I was very graciously and politely rejected because I could not supply the name of one specific human being at the successor bank. It seems like an unrealistic requirement in that human beings are mortal and also change jobs. The rejection still hurts.

  2. Kathy at Bankaholic said:
    on March 27th at 08:24 am

    These Sovereign, Melrose and Danversbank rates are still available as of March 27, 2011.

  3. Kathy at Bankaholic said:
    on May 26th at 06:02 am

    As of May 26, 2011, you can still get Melrose’s 2.93% APY rate as well as Sovereign’s 2.80% APY and Danversbank’s 2.75% APY. But Kaiser’s rate is now 2.50% APY; First National Bank of Long Island’s is 2.50% APY; Salem Five’s is 2.50% APY; and Astoria’s is 2.25% APY.