24 Month CD Rates Stay At 1.75%

Salem Five BankOver the past few weeks, CD rates have changed quite a bit. Banks seem to be battling out for the top spots of most of the CD rate terms. This battle between banks isn’t much to write home about, but it’s a positive sign that CD rates might actually go up in 2011.

One of the most popular CD terms is the 24 month certificate of deposit which has not moved since Jan. 12, when Salem 5 Bank took over the spot from Melrose Credit Union. The Salem, Mass. based bank offers a rate of 1.75% APY on a minimum deposit of $10,000, kind of high for the average person.

These rates are much higher than what the large banks are offering and are much higher than the national average, which is currently sitting at 0.73% APY (24-month term). So if you want the best CD rates then you must look further than your local bank. Be sure you do your research to find the best CD rates, before signing anything at any bank.

Here are the next best 24-month rates:

If you find it hard to put $10,000 into a certificate of deposit then there are other great options. By putting extra money into a CD, you can usually get the best rates. Some banks offer lower minimums of $500, but you lose some of your interest. Usually the lost interest rates will not make much of a difference. 5 tenths of a percent will make very little difference. For example, if you put $5,000 into a 24 month CD at a rate of 1.60%, at the end of your term (24 months), you would have made $161.28 profit. Now if you placed the same amount of money into the same CD term, but lowered the rate to 1.55%, your profits would be about $156.20, a difference of $5.08 or 1 coffee! So if you cannot afford to meet the minimums of some of these CDs, then find the next best option, you probably aren’t missing out on much.

Be sure you get the best rates from your certificate of deposit by comparing CD rates from our up to date database.


Melrose Back On Top Of 2 Year CD Rate

That was fast! It only took a few days and no work on Melrose Credit Union’s part, but they are now back on top of the 2 year CD rate. Bank of Internet lowered their 24 month CD rate to 1.60%, causing Melrose to take the lead once again.

It seems like a bank would want to hold on to the top spot of any CD rate terms, even if it was just for a week, but it only took a matter of a few days before Bank of Internet decided to lower their rates.

The next best 24 month CD rate goes to Stonebridge Bank which is rated 1 out of 5 stars from Bankrate, which means ‘Lowest Rated’. That does not necessarily mean the bank is failing, but can give a good indication on how well the bank is performing. As long as the bank is FDIC insured, your money will be safe up to $250,000.

Here are the most up to date 24 month CD rates after Melrose:

These banks offer no restrictions on who can open an account and invest into their certificate of deposits. Melrose Credit Union has no restrictions on who can apply for their credit union and only charges a $1 fee.

Be sure to check our CD Rates page for the most up to date information.


Top 2 Year CD Rates Drop Below 2%

It didn’t take long for iGObanking to realize how well they were paying on their 2 year CD. Just last month they were paying almost half a point higher than the next leading 2 year CD, then dropped their rates to 2.00%, still beating out the competition. Now iGObanking has dropped their 24 month rate to 1.00% APY, lower than the highest leading 6-month and 12-month rates, which are 1.15% and 1.51%.

This might be a sign of things to come as rates continue their slide down the charts. No other bank or financial institution is close to paying 2% on any 24 month CD. Keep in mind that the national average of a 2 year CD is sitting right around 0.77% APY.

Here are the next best 2 Year certificates of deposit:

  • Melrose Credit Union at 1.76% APY with a minimum deposit of $5,000 and is located in Queens, NY.
  • Presidential Bank at 1.75% APY with a minimum deposit of $1,000 and is located in Maryland, Virginia and Washington D.C.
  • Bank of Internet at 1.72% APY with a minimum deposit of $1,000 and is an online bank from San Diego, CA.
  • Discover Bank at 1.65% APY with a minimum deposit of $2,500 and is the online bank owned by the credit card company.

All of these banks and credit union allows anyone to join or buy their CDs. Melrose Credit union allows anyone to join for only $1. They impose no restrictions and are located out of Queens, New York.

Be sure to compare all of the best CD rates from our certificates of deposit database.


Best CD Rates For Week Of November 8, 2010

So far CD rates have not moved much in the past month. The same leaders are sitting at the top while other major banks and other financial institutions keep cutting back their rates.

By following all of the top CDs, we can tell you that the average rates have fallen for the 24th straight month in October. Bankrate keeps track of hundreds of banks and their CD rates and every month the average rate continues to decrease. There are those few and far between moments where we find a great deal such as iGObanking’s 2.25% 2 Year CD, I don’t expect this to last much longer.

Long-term rates are being hit the hardest and while the Fed has started their new bond-buying program, interest rates are expected to fall across the board over the next many months. I do not see how our leaderboard’s rates can stay this high over the next few days and weeks.

*TermBankNovember 8Last Week
3 Month CDNexity Bank0.86%0.86% APY
6 Month CDBank of Internet1.15% APY1.15% APY
12 Month CDMelrose Credit Union1.51% APY1.51% APY
24 Month CDiGObanking2.25% APY2.25% APY
36 Month CDMelrose Credit Union2.27% APY2.27% APY
60 Month CDMelrose Credit Union3.03% APY3.03% APY


Raise Your Rate With Ally’s 2 Year CD

Ally usually sits around the top of the best CD rates available nationally, but ever since iGObanking took the top spot for the 2 Year CD at 2.25%, no other financial institution has come close to beating their offer. Ally’s 2 Year CD rate sits at 1.60%, which is still a decent rate and is only 4th place behind Bank of Internet at 1.72% and Discover Bank at 1.65%.

Ally is one of the more stable financial institutions with a 4 of 5 star rating from Bankrate and is also FDIC insured. Ally offers a one time rate increase if they ever increase their rates on any of their certificate of deposits. Their 2 year CD rate of 1.60% may be a good deal because they have no minimum deposit and if they increase their rates in the next few months you will also be able to increase your rate. With their one time rate increase, if CD rates increase in 2011, you will have the option of capturing the better rate without starting a new 2 year term.

Ally does have an early withdrawal penalty for any withdrawals before the maturity date. The fee is equal to 60 days interest.

Be sure to compare how Ally’s CD rates stack up against other banks and financial institutions.


Federation Bank Offers 24 Month CD Rate at 1.71% APY

If you are into saving for the long haul then a certificate of deposit for no less than a 2 year term, might be for you. Longer term CD rates will pay the highest interest, which is still vastly lower than just a few years ago. A two year CD from Federation Bank is paying a rate of 1.71% APY.

The great aspect of this CD is the low minimum deposit of $500. Some certificates of deposit require a much higher minimum, forcing many people to look elsewhere.

Federation Bank is located in the great state of Iowa and branches can be found in Brighton, Wellman, Richman and two in Washington. In 2003 Washington Federal and Rubio Savings Bank merged to form Federation Bank, while Rubio Savings has been around since 1906. This is a bank that is well developed and offers other great services other than their excellent CD rates. Be sure to visit a branch location nearest you for other CD rate offers.


Ally Bank Best CD Rates

Ally Bank has many options for the average investor. They offer some of the most competitive CD rates on the market today. Ally Bank offers certificate of deposits from 3 months to as long as 60 month (5 Years). Ally Bank also offers a ‘Raise Your Rate CD’ and they also have a ‘No Penalty CD’, meaning that you can close the CD without paying part of your interest back. One of the issues with longer term CDs is that if you want to close the CD early, you will have to pay an ‘Early Withdrawal Penalty’ for taking your money out. Here is a list of the most common CD Early Withdrawal Penalties:

  • 30 days = All Interest
  • 2-18 Month CDs = 3 Months Interest
  • 2 Years+ CDs = 6 Months Interest

Some banks have stricter penalties, so be sure to read the fine print!

Ally Bank’s No Penalty CD is only available in the 11 Month term, with a current rate of 1.35 percent. This is a pretty good rate since you can take your money out at any time after the first 6 days without paying a penalty. This 11 Month CD currently beats many 12 Month CDs from major banks, Credit Unions are the exception.

Ally Bank’s Raise Your Rate CD is only available for the 2 Year term, with a rate of 1.92%. With this CD, you have the option of raising your rate once within the 2 year term. If rates go higher than 1.92% you can bump your interest rate up to the higher level.

Here is a list of all of Ally Bank’s CD Rates:

CD Rates are constantly changing, so to find the most up to date rates, visit Ally.com


Ally Bank Best CD Rates

Ally Bank is offering a competitive 1.92% APY 2 year CD with the option of a one-time rate increase during the 24 month term. This gives you both the flexibility and earning power you need to maximize your interest earnings. If rates increase you can opt in at any time to lock in your rate at the higher interest rate.

Ally Bank makes it easy and stress free to sign up for any of their CD products.

  • Open an account with $0.
  • No monthly fees.
  • The extra peace of mind Ally’s Ten Day Best Rate Guarantee.
  • Compounded interest daily to maximize your earnings
  • FDIC insured
  • Automatic renewals at maturity
  • Ally gives you the ability to withdraw and receive earned interest as income.

The early withdrawal penalty with Ally is only 60 days’ interest and does not apply to a No Penalty CD.

If you were to deposit $5,000 for the 2 year CD at 1.92% APY, at the end of two years you would make $193.65 and at $10,000 deposited for the same term you would earn $387.30. These rates are still better than:

  • Bank of America 1.10%
  • ING Direct 1.10%
  • Chase 1.01%
  • HSBC Advance 0.75%


Tennessee Commerce Bank Offers High CD Rate

The Tennessee Commerce Bank is offering a 2 year CD rate of 2.10% APY and a 3 year CD rate of 2.50% APY. The minimum deposit of both accounts is only $2,500. Both of these high interest CD rates come with an early withdrawal penalty of 6 months’ interest and are available nationwide.

It is easy to fund a new account with Tennessee Commerce Bank, either through ACH transfer, wire or check. Applications can be submitted through their website, by mail or even fax. Two forms of ID will be needed to open one of the CDs. Sending money via a wire transfer is free, but an outgoing wire will cost $25.

To close your CD at maturity you will need to submit the request in writing, otherwise the CD will be renewed for another term.

Tennessee Commerce Bank has a 2 of 5 star soundness rating through Bankrate and is FDIC insured.

Be sure to visit their website here for more updated CD rate offers.