Top national 5-year CD rates pay 2.27%

White piggy banks with stacks of money and moneybag

For savers shopping worthy 5-year CD rates, 2016 is playing out as a year of dashed hopes.

Even though the Federal Reserve raised interest rates last December, the top yields for most major CD terms have stagnated, and in some cases, they've even dropped.

A search through Bankrate's extensive database of the day's best CD rates will show that 5-year yields have been hit especially hard, sitting almost two-tenths of a percentage point lower now than in December.

Fortunately, local deals from credit unions and community banks continue to pay up to three-quarters of a percentage point more than the leading national return — over 3% in one instance.

But when will long-suffering savers finally get to reap some rewards among national offers? It largely depends on the Fed, and we'll tell you what we know.

The top national deals

Today's top 60-month return sits at 2.27% APY, down from the 2.45% APY you could earn at the time of the Fed's hike.

5-year CD rates
But it's worse than just that drop in the lead, because in December savers could earn more than 2.00% APY from 16 national banks.

That has since dwindled to just two banks paying above 2.00% APY.

The two are sister institutions: State Bank of India-Chicago and State Bank of India-New York. Both are U.S. branches of India’s largest bank, and both are individually FDIC-insured.

But while the two branches often align their rates, the New York branch dropped its 60-month yield from 2.27% to 2.14% APY in August, while the Chicago branch has held steady.

While it's a letdown from December, it is good to remember that today's top rate of 2.27% APY is still high above the term's post-recession low of 1.75% APY, endured in the spring of 2013.

TOP 5-YEAR CD RATES: Nationally Available Bank Deals

Bank APY Minimum Deposit
State Bank of India-Chicago 2.27% $2,500
State Bank of India-New York 2.14% $5,000
Capital One 2.00% No minimum
EverBank 2.00% $1,500
Federal Savings Bank 2.00% $10,000
First Internet Bank of Indiana 1.92% $1,000
KS StateBank 1.90% $500
E-Loan 1.90% $10,000
Popular Direct 1.90% $10,000
GS Bank 1.85% $500
Nordstrom Bank 1.85% $1,000
Synchrony Bank 1.85% $25,000

Earning more with local deals

Of course, there are always some lucky savers who can outearn the top national rate with certificates of deposit from a community bank or credit union.

These institutions often offer chart-topping yields to savers who live or work nearby or are willing to jump through a hoop or two.

Here are more than a dozen deals that outearn the top national rate, paying qualified savers as much as 3.05% APY on 5-year terms. One of the credit unions even accepts members nationwide.

But on all of the deals below, eligibility requirements will apply. So contact the bank or credit union directly to determine if you qualify.

TOP REGIONAL 5-YEAR CDS: Credit Unions & Community Banks

Bank States Minimum APY
Self Reliance New York Federal Credit Union New York $500 3.05%
General Electric Credit Union Ohio, Indiana, Kentucky $500 2.75%
Lake Huron Credit Union Michigan $500 2.50%
American United Federal Credit Union Utah $500 2.40%
Deere Employees Credit Union Georgia, Illinois, Iowa, North Dakota, South Carolina, Wisconsin $500 2.40%
Pelican State Credit Union Louisiana $500 2.38%
Jefferson Financial Credit Union Louisiana $10,000 2.38%
Nebo Credit Union Utah $25 2.35%
Granite Credit Union Utah $500 2.32%
IH Mississippi Valley Credit Union Illinois, Iowa $500 2.32%
America First Credit Union Nevada, Utah $500 2.30%
Mountain America Credit Union Nationwide $500 2.30%
Cyprus Credit Union Utah $1,000 2.30%

Waiting for higher returns

If you think you might qualify for any of these deals, they're worth investigating because they all pay about three times more than the current average 5-year return of 0.81% APY, according to our weekly nationwide survey of banks and thrifts.

The average return bottomed out at 0.77% APY in the summer of 2013 and gradually rose to 0.89% APY in spring 2015. But since the Fed's hike in December, it's eroded from 0.85% to 0.81% APY.

Rewind to February 2007, before irresponsible mortgage lending led the economy over a cliff. Back then, the national average return for 5-year CDs was 4.02% APY.

But with the financial crisis throwing the economy into a tailspin, the Federal Reserve applied the brakes not only by repressing interest rates to record lows in 2008 but by keeping them anchored there for seven years.

That historic era in the Fed's timeline officially ended when it made a small rate increase in mid-December 2015.

Although the Fed had indicated it would gradually push interest rates higher over the next several years, global and economic news in 2016 has given the rate-setting committee pause.

Indeed, seven of the committee's eight 2016 meetings have come and gone without any announcement of a further rate increase.

The Fed will next meet Dec. 13-14, and finally a strong majority of economists and Wall Street forecasters predict Hike #2 will be announced.

We hope that eventually does come to pass, as 5-year CD rates could certainly use the boost.

Disclaimer: The rates above were verified Nov. 8, 2016. Credit unions and community banks should be contacted directly to determine eligibility for opening accounts with that institution, as well as to verify current rates.

  • ethan

    I called all the regional banks and credit unions, none accept "One of the credit unions even accepts savers nationwide as members."