bank rates

Top 2-Year CD Rates Start Year At 1.6%

The average return on 2-year CDs fell from 1.24% APY at the start of last year to 0.74% APY at the end of 2010 – a 40% decline for those of you keeping track of such things.

The best nationally available 24-month CD rates fared no better.

Melrose Credit Union continues to offer the best nationally available deal on 2-year CD rates, paying 1.66% APY.

Last January, the top rates were 2.30% APY to 2.50% APY. This year, they’re 1.60% APY to 1.66% APY.

If you look around, you might be able to find a local special on odd-term CDs ranging from 23 to 30 months that are paying more than that – over 2% in some instances.

Our recent posts about the deals Lyons Federal Bank, ESB Bank and Dupaco Community Credit Union are offering nearby customers will give you an idea of what to look for near you.

See if you can beat the best nationally available 24-month CD rates, which are:

1.66% APY with a $5,000 minimum deposit from Melrose Credit Union, which has a single office in New York City.

1.65% APY with a $500 minimum deposit from Country Bank, which has 14 branches in central Massachusetts.

1.60% APY with a $500 minimum deposit from Stonebridge Bank, which has four branches in suburban Philadelphia.

1.60% APY with a $2,500 minimum deposit from Discover Bank, an online bank owned by the well-known credit card company.

1.60% APY with a $1,000 minimum deposit from Bank of Internet USA, an online bank based in San Diego, Calif.

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.

Melrose is one of the few credit unions that qualify for our rankings because its unique charter allows anyone to join for only $1, regardless of where they live or work. (You will also be required to hold at least $25 in a savings account.)

See how these returns compare with the best CD rates from scores of other banks in our database.

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  1. Kathy O'Gorman said:
    on February 28th at 09:48 am

    Most of these rates are no longer available as of Feb. 28, 2011, but Melrose and Country Bank are still offering the same rates.