A 7 year CD is a rather odd duration and, like many deposits with oddball maturities, is regularly offered as a promotional product that may carry a much higher APY than standard CD’s.
Over the last couple of days we’ve rounded up all the 7 year deposits – with noteworthy APY’s – that we could find and published the list here on BankVibe.com.
As of November 2009, the highest yielding 7 year CD rates are listed below. If you’re trying to put the offers in perspective, take a peek at today’s highest 5 year CDs as this is the closest product you’ll be able to compare it to. The top rate on a 7 year deposit currently goes to Pentagon Federal Credit Union (below) and can carry a yield of up to 4.0 percent annually depending on your deposit amount.
Pentagon Federal Credit Union out of Alexandria, Virginia tops our list for seven year deposits – providing a 4.0% APY. PFCU has branches throughout Virginia, New York, New Jersey, as well as in the DC area. They also have locations in the west – serving Colorado, Hawaii, and Texas. You must make a minimum deposit of at least $1,000 to open a deposit account with PFCU.
For 7 year CD’s which are available to customers nationwide, USAA bank currently tops our list for highest yields. Their 7 year CD – with a deposit amount of $1,000 to $94,999 – yields 3.85% APY. Additionally, if you can manage to qualify for their “super jumbo CD” (minimum deposit of $175,000) you can earn 4.16% APY.
Some other noteworthy long-term CD rates come from Navy Federal Credit Union and America First Credit Union. They offer 7 year CD’s and 5 year CD’s, respectively, with yields of 3.85% APY and 3.10% APY.
When should you opt for a 7 year bank deposit?
A 7 year CD is considered a long term deposit (generally anything over 4 years is considered long term in the world of bank CDs) and long term CDs should be opened to hedge against future falling rates. When rates are high, you want to lock in these products to ensure you still garner this high rate even in the coming years when rates as a whole may dwindle. Given this fact, today’s savings environment is ideal for these products. With the FED continuing to lower rates in an attempt to stimulate borrowing, savings rates as a whole can only continue downward. And locking in a long term deposit now may turn out to be a smart move.