Thanks to BankVibe reader Yosh who tipped us off on a 5 year certificate of deposit through Community Bank of Bergen County, New Jersey. I know it’s difficult to get excited over a 4.0% annual interest rate for a 5 year maturity, but it still beats the national average for five year CD’s by almost 1 percent.
Community Bank of Bergen County was founded in 1928, and judging from their website, they most likely run a relatively small shop. They have 4 branch locations in New Jersey (Fair Lawn, Rochelle Park, Maywood, and Garfield, NJ). Visit cbbcnj.com to see their hours of operation and updated interest rates.
They offer certificates of deposits with maturities ranging anywhere from 91 days to 5 years, all of which are yielding mediocre rates (besides their 5 year CD deal). You may wish to compare this rate with BankVibe’s top 5 year CD rates to make sure you can’t find a better yield elsewhere.
This deal is good as of the 3rd of this month and carries a minimum balance of $1,000. Like all other bank CD’s there is a penalty for early withdraw.
Why a 5 year CD?
A 5 year CD is likely the optimal deposit term for our current environment. The FED is planning to continue with the reducing a key rates which means savings rates, even by local credit unions, will decline as well. Locking in a high rate with a longer term is probably a smart thing to do currently to hedge against future falling rates.
CD rates in New Jersey usually sit slightly above the national average when it comes to savings rates. If you’re strictly after the highest interest rates we would recommend checking with your local community banks and credit unions as they generally have the upper hand in providing top rates. Credit unions are typically not for profit institutions to begin with, so any profits derived from their banking operations are funneled back into their products in the form of higher savings rates and lower loan rates. They also have no share holders to report to, as share holders of credit unions are technically their members.