It’s been a downright free fall to our current sub-two-percent levels on 5 year CD’s this year. However, in our most recent survey of CD rates in South Carolina we found a number of local institutions still keeping their heads above the 2.0% APY mark.
This time last year, 5 year deposits were still pumping out 3.0% returns if you knew where to look, but Ben Bernanke’s announcement of long term bond purchasing – which effectively lowers long term savings rates – was the leading factor pushing long term deposit rates down the drain this year.
If you happen to live in South Carolina or an adjacent state, you may want to sift through the offers we’ve featured below by local banks and credit unions serving residents in the region. The top two local offers feature a 5 year deposit yielding 2.15% APY with minimum deposits of $1,000. To put the offers in perspective, the top 5 year CD rates from our database of nationally available institutions sits at just 1.95% APY (from Intervest National Bank).
Top 60 Month Deposit Rates South Carolina (December 2011):
- Carolina Federal Savings Bank (Mount Pleasant, SC) – 5 year CD yielding 2.15% APY with a minimum deposit requirement of $1k.
- Eastman Credit Union (Gaston, SC) – 5 year CD yielding 2.15% APY with a minimum deposit requirement of $1k.
- Navy Federal Credit Union (Parris Island, SC) – 5 year CD yielding 2.10% APY with a minimum deposit requirement of $1k.
- Charleston Area Federal Credit Union (North Charleston, SC) – 5 year CD yielding 2.00% APY with a minimum deposit requirement of $500.
- Coastal States Bank (Hilton Head Island, SC) – 5 year CD yielding 2.00% APY with a minimum deposit requirement of $1k.
Should you go long on CD’s?
Before committing to any of the offers above, you may want to consider a more liquid FDIC insured savings vehicle. Generally speaking, you don’t want to tie up your money in long term deposits when rates are low. These accounts are best utilized in a high rate environment, thereby locking in a favorable rate for the longest term available. In today’s landscape, looking into something like a rewards checking account may be your best bet as far as interest rates + FDIC insurance are concerned. Just be sure you can meet minimum requirements or you’ll likely miss out on the high rates.