The best nationally available 5-year CD rates that consumers can benefit from

CD’s are a safe investment option for those that wish to invest funds for a certain period of time.  However, the money is there for a locked in period and early withdrawal can attract a penalty.  Hence it is better to wait until the date of maturity of the CD.  CD’s are not paying higher rates these days and rates are getting really low.  Even the best CD rates are below 3%.  But even in that case, one can still take advantage of those deals as they are almost twice the amount that one could earn on a 60-month CD.  But if you wish to settle for a rate that is below average then it is like giving money away.

Some of the top nationally available 5-year CD rates are:

Melrose Credit Union – a minimum deposit of $5,000 and 2.93% APY.  They have a single office in the city of New York.

Salem 5 Bank – a minimum deposit of $5,000 and 2.75% APY.  They have 22 branches north of Boston.

Danversbank – a minimum deposit of $500 and 2.75% APY.  They have more than 30 branches in Boston area.

Astoria Federal Savings – a minimum deposit of $500 and 2.60% APY.  They have 85 branches in Queens, Brooklyn, Nassau, Suffolk, and Westchester counties.

EverBank – a minimum deposit of $1,500 and 2.55% APY.  An online bank predominantly and is based in Jacksonville, Fla.

Bank of Internet – a minimum deposit of $1,000 and 2.54 APY.  This is an online bank and is located in San Diego.

These banks impose no restrictions on those who can buy their CD’s and hence qualify for the rankings.  The CD’s can be bought online and via mail.

Melrose has qualified in the rankings as one of those few credit unions where due to their unique charter anyone can join by paying just $1.  This is irrespective of where they work or live.  Another additional requirement is to have a savings account with at least $25 in it.

EverBank has just that one drawback which is the hefty penalty on early withdrawal on their CD’s.  While most banks charge the 6-month interest penalty, EverBank charges a 15-month interest or 25% of the interest that could be earned over the completion of the full term of the CD.  However, for those who reclaim their money before they have earned enough out of the interest to cover the penalty, then EverBank deducts this from the principal amount.