Leading 2-year CDs pay four times average rate

Piggy bank in dollar bills

There are a bunch, and we mean a bunch, of community banks and credit unions offering local deals on 2-year CDs.

The very best returns can be found at Gulf Coast Federal Credit Union in Corpus Christi, Texas, and the Transit Employees Federal Credit Union in Washington, D.C.

Both are paying savers 1.55% APY with just a $500 minimum deposit.

That's significantly better than the best nationally available return of 1.26% (more on that later) and more than four times the current average return of 0.37% APY for 24-month CDs.

Anyone in the market for a 2-year certificate of deposit should be searching newspaper ads, Bankaholic.com and Bankrate's database of the best CD rates for the latest local deals.

Here are some of the best offers we've found.

TOP 2-YEAR CD RATES: Local Deals

Bank/Credit Union (APY) State Contact
Gulf Coast Federal Credit Union 1.55% Texas http://www.ccgcfcu.com/
Transit Employees Federal Credit Union 1.55% Washington, D.C. https://www.tefcu.org/
Bay Ridge Federal Credit Union 1.50% New York https://www.brfcu.org/
Montauk Credit Union 1.50% New York http://montauk-cu.com/
Service 1st Federal Credit Union 1.50% Pennsylvania https://www.service1.org/
Valley Green Bank 1.50% Pennsylvania https://www.valleygreenbank.com/
LOMTO Federal Credit Union 1.45% New York http://www.lomto.org/
GPO Federal Credit Union 1.36% Washington, D.C. http://www.gpofcu.com/
Security First Credit Union 1.36% Texas http://www.securityfirstcu.com/website/
Freedom Bank 1.35% New Jersey http://www.freedombanknj.com/
Beach Community Bank 1.30% Florida https://www.beachcommunitybank.com/
Cintel Financial Federal Credit Union 1.30% Ohio https://www.cintelfcu.org/home/home
Department of Commerce Federal Credit Union 1.30% Washington, D.C. https://www.docfcu.org/
Doral Bank 1.30% New York http://www.doralbank.com/
Industrial Credit Union 1.30% Massachusetts http://www.icu.org/
Navigator Credit Union 1.30% Alabama, Mississippi https://www.navigatorcu.org/
NavyArmy Community Credit Union 1.30% Texas http://www.navyarmyccu.com/

If you can't find a great local rate near you, consider one of the banks offering the best nationally available rates.

CSBdirect is offering 1.26% APY with a $1,000 minimum. But Salem Five Direct, CIT, NexBank and Colorado Federal are all a close second, paying 1.25% APY to savers.

We haven't seen anything more lucrative since NexBank treated savers across the country to 1.30% APY way back in May 2013.

TOP 2-YEAR CD RATES: Nationally Available Bank Deals

Bank APY Minimum Deposit
CSBdirect 1.26% $1,000
EverBank 1.25% $1,500
Salem Five Direct 1.25% $10,000
CIT Bank 1.25% $25,000
NexBank 1.25% $10,000
Colorado Federal 1.25% $5,000
CalFirst 1.20% $5,000
GE Capital 1.20% $500
Silvergate Bank 1.16% $2,500
VirtualBank 1.16% $10,000

To qualify for this list, a bank must allow savers from all 50 states to buy its certificates of deposit online or through the mail.

Our CD calculator will help you figure out the interest you'll earn for any term, amount and interest rate.

TOP 2-YEAR CD RATES: About The Banks

Bank Description URL
CSBdirect The online division of Citizens State Bank, which has four branches in Florida. www.csbdirect.com
EverBank Primarily an online bank with 14 branches in Florida. www.everbank.com
Salem Five Direct The online division of Salem 5 Bank, which has 23 branches just north of Boston. www.salemfivedirect.com
CIT Bank The online consumer bank of CIT Group Inc., which offers financing to small businesses and middle-market companies. www.bankoncit.com
NexBank A division of NexBank Capital Inc. which has two branches in the Dallas area. www.nexbank.com
California First National Bank An online bank owned by the same company that runs California First Leasing Corp., which finances all sorts of high-tech business equipment. www.calfirst.com
GE Capital Bank One of two online banks, each with its own FDIC insurance, that are subsidiaries of GE Capital Corp., the financial services unit of the manufacturing giant. gecapitalbank.com
Silvergate Bank A community bank with four branches in southern California. www.silvergatebank.com
Virtual Bank The online division of Sabadell United Bank, which has 23 branches in Florida and is owned by Banco Sabadell, Spain's fourth-largest bank. www.virtualbank.com

Still thinking?

Let me give you one other option to consider.

Melrose Credit Union (www.melrosecu.org) has a single office in the Briarwood neighborhood of the New York City borough of Queens.

It allows anyone to join, no matter where they live or work, with a $1 membership fee and $25 deposit in a savings account.

Once those formalities are taken care of, members earn some of the best returns in the nation, including 1.41% APY on 2-year CDs with a $5,000 minimum deposit.

Contributing editor Darci Swisher provided research for this report.
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