Looking for the best long term CD rates in Tennessee this year? We’ve tracked down a few institutions (mainly community banks and credit unions) offering some competitive annual percentage yields on 60 month CD’s.
While we don’t recommend locking money up in a 5 year CD when interest rates are at all time lows, the FED has recently came out and mentioned that we can expect rates to sit at these levels through at least 2014, so locking in a 2 or even 3 year CD might be worth the consideration (and the institutions we’ve mentioned below have above average rates on those products as well).
To put the rates below in perspective the average yield on 1 year CD’s sits at roughly 0.75% APY throughout the country, while the average yield for 5 year CD’s sits at just 1.50% APY.
Another important metric to factor in is inflation data. This allows you to understand your “real returns” on your deposits. Inflation data comes in the form of a percentage and when applied to your savings or net worth, decreases it’s buying power by that percentage amount. So for example, during the first month of 2012 the US had an inflation rate of 2.93%. If this number stays the same throughout the year, the buying power of your savings will have decreased by that much over the course of 2012. You’ll also want to factor this in when computing the estimated returns on your bank deposits. If you lock in a CD yielding 1.0%, you will only lose 1.93% of your buying power as apposed to someone sticking their savings under their mattress and losing the full 2.93% of their buying power.
(Rate of Deposit – Rate of Inflation = Real Returns)
Top 5 year CD Rates in Tennessee – 2012 Edition:
*These rates are accurate as of the beginning of 2012. Visit our 5 year CD rate tables to see today’s top rates from around the country.
1) American Airlines Federal Credit Union (Nashville, TN) has a 60 month CD yielding 2.47% APY requiring a minimum deposit of $10,000. AAFCU limits their eligibility to those working with the airlines, an airport, or related family members of those employees.
2) Wings Financial Credit Union (Memphis, TN) has a 60 month CD yielding 2.32% APY requiring a minimum deposit of just $1.00. Wings Financial accepts a broader base of members. Visit them at WingsFinancial.com to see if you are eligible.
3) Homeland Community Bank (Morrison, TN) has a 60 month CD yielding 2.30% APY with a minimum deposit of requirement of $500. Visit homelandcb.com for further information.
Think we’ve missed a high yielding CD in Tennessee? Let us know about it by leaving a comment!