Best 24-Month CD Rates Edge Lower

The banks are pretty much the same. But the returns are worse.

That’s the sorry story of our latest rankings of the best, nationally available 24-month CD rates.

In November our top-paying banks were offering 2-year certificates of deposit for 2.60% to 2.55% APY and you only needed a $1,000 minimum deposit to qualify for the top rate.

This month you’ll earn 2.50% to 2.30% APY and need a whopping $50,000 to qualify for the top rate.

Although that’s still twice as much as you can make with the typical 2-year CD, it’s not saying much. The average rate on these CDs plunged to a record low of 1.26% APY last week.

The best, nationally available deals on 24-month CDs are:

2.50% APY with a minimum deposit of $50,000 for “Silver CDs” from Frontier Bank, which has 50 branches in Washington and Oregon. You can also earn 2.45% with a $25,000 minimum deposit and 2.40% with a $500 minimum deposit.

2.40 APY with a minimum deposit of $1,000 from The Jacksonville Bank, with five locations in that Florida city.

2.40 APY with a minimum deposit of $1,000 from Atlantic Coast Bank, with 12 full-service branches in southeast Georgia and northeast Florida.

2.30 APY with a $5,000 minimum from Hudson City Bank with dozens of branches in New Jersey, New York and Connecticut. If you live near a Hudson City branch the minimum deposit is only $500.

Click here to compare these offers with the best CD rates from dozens of other banks in our database.

Related Posts:Frontier Alone At Top Of 2-Year CD RatesBest 24-Month CD Rates Jump to 2.60%Best 24-Month CD Rates Hold At 2.50%Hudson City Rockets Up CD Rate RankingsOne Bank Still Pays 3% On 3-Year CDs

Fed Keeps Pounding Down CD Rates

Savers struggling with record-low CD rates got no help from the Federal Reserve this week.

The Fed’s rate-setting committee renewed its pledge to keep interest rates artificially depressed for an “extended period” to ensure a strong economic recovery.

The committee acknowledged the economy has “continued to pick up” and that “deterioration in the labor market is abating” since employers are laying fewer workers off this fall.

But the Fed said it would continue to boost growth and job creation by charging commercial banks 0% to 0.25% for overnight loans.

As long as the government-controlled Fed provides commercial banks all the money they need for virtually nothing, those banks can pay a pittance for our savings.

No wonder four of the five certificates of deposit we follow fell to new record lows in Bankrate’s Dec. 16 survey of large banks and thrifts. The average annual yield for a:

3-month CD fell to 0.37% from 0.38% this week. That’s the lowest average since the survey began tracking 3-month CD rates in March 1989.

6-month CD fell to 0.51% from 0.52% — the lowest average since the survey began tracking 6-month CD rates in January 1984.

1-year CD fell to 0.82% from 0.83% — the lowest average since the survey began tracking 12-month CD rates in October 1983.

2-year CD fell to 1.26% from 1.28% — the lowest average since the survey began tracking 24-month CD rates in March 1989.

5-year CD held at 2.08% after falling for four straight weeks. The 2.08% is the lowest average rate since the survey began tracking 60-month CDs in January 1984.

With average rates like this you can’t settle for average returns.

Use our database of CD rates to find and compare the best deals from scores of banks.

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H&R Block Tops 6-Month CD Rates

H&R Block Bank has jumped to top of our rankings of the best 6-month CD rates.

Its promotional offer of 2.0% APR with a minimum deposit of $10,000 is available until Sept. 30, and you can apply online.

That’s the same rate United Central Bank was offering when it led our latest rundown of the best, nationally-available 6-month certificates of deposit.

But United Central cut its rate in half just before Labor Day and H&R Block stepped up to take its place as the only bank still offering 2.0%.

Click here to compare these rates with the best CD rates and terms from dozens of other banks in our extensive database.

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Local Deals Offer Highest CD Rates

Small banks are paying local customers 2.5% or more for short-term certificates of deposit — beating the best nationally-available CD rates by almost half-a-point.

That’s because the highest CD rates continue to be offered through deals restricted to the local customers of community banks.

In most cases the best rates are on odd-term certificates of deposit — CDs that don’t mature in the traditional 6-, 12- or 24-months.

But they routinely:

Pay more than twice the national average of comparable, traditional CDs — a record-low 0.98% APY for 12-month CDs right now.
Beat the best nationally-available rates — currently 2.15% APY for a 12-month CD from OneWest Bank.

Here are just some of the deals you can find out there. In each of these examples the CDs must be purchased in person at a local branch.

2.55% APY on a 13-month CD with a minimum deposit of $100 from the Bank of Kirksville, which has eight locations in northeast Missouri.

2.50% APY on a 15-month CD with a minimum deposit of $500 from Enterprise Bank of South Carolina, which has 12 locations in South Carolina.

2.50% APY on a 13-month CD with a minimum deposit of $500 from Atlantic Southern Bank, which has 13 branches in Georgia and Jacksonville, Fla. (This deal is also available at the three Georgia branches of Sapelo Southern Bank, a wholly-owned subsidiary.)

Click here to compare these offers with the best CD rates from dozens of other banks in our extensive database.

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Washington Fed Pays 2.50% On 2-Year CD

Here’s another example of the competitive CD rates we’re finding in the Pacific Northwest.

Seattle-based Washington Federal Savings is paying a 2.50% APY on a 24-month CD with a minimum deposit of $1,000.

If this deal was nationally-available, it would be near the top of our rankings of the best 24-month CD rates.

But it’s not and you can’t apply online.

To open an account you’ve got to visit one of Washington Federal’s 124 branches in eight Western states.

This certificate of deposit is also available at a couple of banks it owns — First Mutual Bank, with 13 branches in Washington, and First Federal Bank, with 13 branches in New Mexico.

Since Washington Federal doesn’t even post CD rates on its Web site, call your local branch to confirm it’s still being offered before making the trip.

Click here for the address and phone number of the one nearest you.

You can use our extensive database of CD rates to compare this offer with the best deals from scores of banks.

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Competition Spurs CD Rates In Northwest

Banks in the Pacific Northwest appear to be doing something we haven’t seen in almost a year — competing for our money.

Calling this a rate war would be a stretch.

But a couple of regional banks are offering some of the best CD rates you’ll find anywhere in the country.

Frontier Bank, which has more than 40 branches in Washington and Oregon, is paying 2.60% APY on 24-month certificates of deposit with a $500 minimum deposit.

Invest at least $50,000 and you can earn 2.70% APY.

That topped our August rankings of the best, nationally-available 24-month CD rates.

Banner Bank is paying 2.50% APY on a 21-month CD, with a minimum deposit of $2,500.

You must apply online to get the Internet special, but it’s only open to residents of Washington, Oregon and Idaho, where Banner operates more than 100 branches and loan offices.

Community banks have leapt in, some with even better rates.

The Bank of Oswego, with two branches in Lake Oswego, Ore. is offering 2.75% APY on a 24-month CD with a $1,000 minimum deposit.

Although it says the rate is available nationwide, you can’t apply on-line. To open an account you have to speak with a customer service representative at 503-635-1699.

We wouldn’t be surprised if interest in this CD swamped Bank of Oswego’s phone lines and quickly forced it to limit this rate to local customers.

But with CD rates at or near record lows, savers need more of this.

Click here to compare these deals with the best CD rates from dozens of other banks in our extensive database.

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Citi Takes Lead In 18-Month CD Rates

It’s been a long time since a big bank had a CD rate that made us sit up and take notice.

But Citibank is offering 2.25% APY on an 18-month certificate of deposit with a very modest $500 minimum deposit.

That’s the best nationally-available deal on an 18-month CD that we know of, beating the 2.13% APY from Discover Bank, OneWest Bank and MetLife Bank. (They have much higher minimum deposits, too.)

The Federal Reserve and Treasury Department have been pumping so much cheap money into the big banks that they haven’t needed our savings.

Ever since the banking crisis struck last the best rates have come from smaller banks that still needed to compete for deposits.

But desperate savers would flood those banks so much money they’d quickly lower their rates, sometimes in a matter of days, contributing to the extraordinary volatility we’ve seen in CD rates this year.

Could Citi be leading the big banks back into the market?

Use our database to compare Citi’s offer with the best CD rates from scores of other banks.

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1.85% Leads 3-Month CD Rates In August

TotalBank tops our survey of the best 3-month CD rates for the second straight month.

The Miami-based bank is offering less than the eye-catching 2.25% APY it was paying in July, with a $1,000 minimum deposit.

That deal was short-lived, dropping to 1.85% APY just days after it was posted.

But TotalBank has maintained that rate ever since and it’s still significantly higher than all other nationally available 3-month CD rates.

It’s also more than three times the average rate for 3-month certificates of deposit, which fell to a record low 0.49% APY last week.

The next-best banks in our August rankings have changed, but the rates they’re offering are very close to those in our July rankings:

1.55% APY with a $1,000 minimum from Beal Bank Nevada, which has a single office in Las Vegas.

1.55% APY with an $8,000 minimum from UFB Direct. CDs sold at UFBDirect actually come from Waterfield Bank, which has a couple of full-service offices in Carmel, Ind., and Germantown, Md.

These are all Internet specials and accounts must be opened online to qualify for these rates.

Click here to compare them with the best CD rates from dozens of other banks in our extensive database.

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Get A Card, Get A Great CD Rate

If you can qualify for a Citi Secured MasterCard, you can take advantage of one of the best CD rates around.

The collateral you post for the card — up to $25,000 — is invested in an 18-month certificate of deposit paying 4.07% APY. That’s considerably more than the 2.25% special Citi is currently advertising.

But to qualify for the card, you’ve got to be credit newbie. MORE

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Tennessee Bank Boosts 24-Month CD Rates

Tennessee Commerce Bank has increased the return on its 24-month CDs to 2.50% APY from 2.20% APY the past couple of weeks.

Although it only has one office in Franklin, Tenn., the bank accepts out-of-state deposits, allows accounts to be opened online and imposes a modest $2,500 minimum deposit.

We’ve written about Tennessee Commerce before and don’t recall any negative comments about its service.

The increase puts Tennessee Commerce near the top of our rankings for the best, nationally-available 24-month CD rates.

Only one bank has a better deal: Frontier Bank, which has more than 40 branches in Washington and Oregon, is paying 2.60% APY with a $500 minimum deposit, or 2.70% with a $50,000 minimum deposit.

That’s about a point higher than the national average for 24-month CDs.

You can use our extensive database of CD rates to compare these offers with the best deals from scores of banks.

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