Best 5 Year CD Rate Finally Drops Below 3%

When you thought the financial news couldn’t get any worse, Melrose Credit Union lowers their 5 Year CD to 2.93% APY on Tuesday. Mortgage rates are increasing and saving rates are decreasing, it seems to be the same old news week after week. Melrose Credit Union was our glimmer of hope, our bright shining star in this dark and dreary economy.

This small credit union from Queens, N.Y still leads in the 5-year ranking, but has dropped below the 3% barrier. They are still paying a quarter-point more than any other financial institution and also still lead in other CD terms.

One of the reasons why rates are tumbling is because the Fed continues to give banks as much cash as they want for near nothing. The Fed also announced in early November that they planned on buying $600 Billion worth of Treasury Bonds, this move has helped keep rates depressed.

Here is a list of the next best 60-month CD rates:

Anyone nationwide can qualify and open an account with these banks and financial institutions. Melrose Credit Union also allows anyone to join their credit union for a $1 fee and a $25 deposit into a savings account.

Compare these rates with our updated CD rates board to be sure you get the best rates available nationally.

24 Month CD Rates Fall Below 2.00%

Can it be a sign of what is ahead in the game of CD rates? Finding the highest and most worthwhile investments is becoming more difficult than in times past. Is a 2 year CD under 2.00% APY really worth the time and money? Sure a certificate of deposit will be the safest place to store your cash, but for what you get back its almost better to put the cash into an investment like real estate or a high yielding savings account.

For the sake of making this simple and using an amount that is more achievable by the average American, a $1,000, 24 month CD at 2.00% will net you $40.78 AFTER 2 years! This is more than most savings accounts, but I bet you could find a car on Craigslist, fix it up and make a profit more than $40. In fact I bet you could do that a few times within the next 2 years. The point being, is it really worth sticking your money into a 2 year CD at 2.00%? That’s the question you have to ask yourself.

Here is a list of the highest paying 24-month certificate of deposits:

  • NewDominion Bank just cut their 24 month CD rate from 2.00% to 1.95%. They are still the highest paying 24-month CD and requires a minimum deposit of $3,000.
    • With a deposit of $3,000 @ 1.95%, this certificate of deposit will net you $119.21 in two years.
  • Bank of Internet which is an online bank based in San Diego is paying 1.89% APY with a minimum deposit of $1,000.
  • Acacia Federal Savings Bank, also an online bank owned by the Acacia Life Insurance Co. is paying 1.80% APY with a minimum deposit of $500.
  • Discover Bank, an online bank by the credit card company ‘Discover’ is paying 1.80% APY on a minimum deposit of $2,500.
  • Colorado Federal Savings Bank, also an online bank located in Greenwood Village, CO is paying 1.80% APY with a minimum deposit of $5,000.

Since these are all online banks they allow anyone from anywhere to open an account and deposit funds into their certificate of deposits.

Be sure to compare the best CD rates from our database of banks and financial institutions.