Whose offering 2.0% APY CD Rates?

Despite the fact that CD rates are at these ridiculous low levels, consumers – who are tired of wadding into the stock market and are just looking for guaranteed returns – are still turning to these financial instruments to store their savings. Yes their yields are pathetic and yes the rate of inflation may be trumping any real positive gains from them, but it still beats stacking cash under the mattress.

Taking into consideration that the current national average for 1 year CD rates and 3 year CD rates sits at roughly 0.80% and 1.20% APY respectively, we thought we’d scrounge up the most noteworthy CD rates we could find that were providing yields above 2.0% APY and publish them in this post. And unfortunately, after compiling this list, we found that in order to yield 2.0% returns or above on your bank CD you’ll need to invest in at least 4 year terms.

CD Rates with yields above 2.0% APY:

(Rates accurate as of September 2011.)

1) El Paso Teachers Federal Credit Union offering a 48 month CD yielding 2.72% APY with a minimum deposit of $10,000 required. *Not available nationwide.

2) American Airlines Federal Credit Union offering a 48 month CD yielding 2.42% APY with a minimum deposit of $10,000 required. *Not available nationwide.

3) Alliant Credit Union offering a 48 month CD yielding 2.35% APY with a minimum deposit of $1,000 required. Available in several states. Visit AlliantCreditUnion.org for further information.

4) SeaComm Federal Credit Union offering a 48 month CD yielding 2.25% APY with a minimum deposit of $1,000 required. Available in many states in the Southeast.

5) Tarboro Savings Bank offering a 48 month CD yielding 2.28% APY with a minimum deposit of $500 required. This is a community Bank based out of North Carolina.

Know of a community bank or credit union with CD rates above 2.0% APY? Let us know by leaving a comment!

2.50% APY CD Rates – You’ll have to go long

Struggling to find a 2.50% APY, FDIC-insured return on your investment? So is everyone! If you’ve been in the market for a bank CD and have been continuously scrounging the web for better interest rates you may as well give it a rest. The best 12 month CD’s are hardly yielding above 1.25% APY, the best 2 year CDs are barely pushing 1.50% APY and even the highest yielding 5 year CDs are just pumping out 2.50% APY returns.

In most cases you’ll find the best interest rate through an online bank, however, you may want to head on down to your local credit union to check out their CD rates as well. Credit unions are not-for-profit, member-owned institutions and can sometimes provide higher rates on their deposits. Online banks lack the brick and mortar expenses that all other banking institutions possess so they will certainly be one of your best bets for highest yielding CD rates.

Online Banks Providing 2.50% APY on CD Rates:

- EverBank’s CD Rates come with a 2.61% APY if you’re willing to invest in a 5 year CD with a minimum deposit of atleast $1,500.

- Nationwide Bank has a 5 year CD yielding 2.55% APY with a minimum deposit of $500 required.

- Bank of Internet has a 5 year CD yielding 2.54% APY with a minimum deposit of $1,000 required.

2.0% APY Bank CD Rates – How long do you need to invest?

In the past (say pre-2008), 2.0% APY savings rates or CD rates were considered extremely uncompetitive interest rates. Even 6 month CD rates were yielding twice that amount and liquid savings accounts such as money market accounts and online savings account were even providing rates more twice the amount as well. Today’s savings market is, needless to say, a whole new ball came. Today, A bank CD yielding 2.0% APY generally requires you to commit your money for 3 years or greater. However, we just came across a decent offer from ESB Bank out of Pennsylvania. Currently, ESB Bank has a promotional 30 month CD yielding 2.02% APY with a minimum deposit of $500 required.

Unfortunately for most of us this deal is off the table. ESB Bank operates out of Pittsburg, Pennsylvania and has 6 branches within the city. They also have 18 offices in surrounding counties.

About ESB Bank:

ESB Financial Corporation (NASDAQ: ESBF), a publicly traded financial services company, provides a wide range of retail and commercial financial products and services to customers in Western Pennsylvania though its wholly owned subsidiary, ESB Bank.

Compare this offer with other Pennslyvania CD rates.

Incredible Bank’s CD Rates and Review (online 12 mo. CD)

Incredible Bank, an online division of River Valley Bank in Wisconsin, is offering an “INCREDIBLE CD” that is only available online. As of the 28th of May this 12 month CD comes with any APY of 2.00%. To put this offer in perspective, the current national average for 1 year CDs sits at roughly 1.15% APY. Their are a few catches with this product that you must take into account before opening – first, you accumulate your interest in a somewhat awkward fashion. For example, with their 12 month CD, you will incur an interest rate of just 1.75% APY on your first 6 months, then the second 6 months of the 1 year term yields 2.25% APY …averaging out to 2.0% APY for the life of the deposit. Second, they require a rather steep minimum deposit of $10,000 and you will need to make this deposit online through Automated Clearing House Network.

This offer is available to consumers across and is federally insured by the FDIC.

Details, Terms and Conditions associated with Incredible Bank’s “Incredible CD”:

• Annual percentage yield offered as of 05/28/2010 for this 12 month-IncredibleBank certificate of deposit.
• APY may change at any time without prior notice.
• First six months earns 1.75% APY. Second six months earns 2.25% APY.
• $10,000 minimum deposit to open the CD. $10,000 minimum balance to earn the stated APY.
• Maximum of $225,000 allowed to be invested in one or more IncredibleBank certificates of deposit.
• Alternative terms not allowed.
• Fees may reduce earnings.
• Penalty for early withdrawal.
• Additional restrictions apply.

They also have a high interest checking account available online as well. Here are the features of that account:

• $0-$250,001 earns 1.53% APY. Above $250,001 earns 1.00% APY.
• Rate offered as of 5/3/10.
• $1,000 minimum deposit to open the account.
• Fees may reduce earnings.
• Rate subject to change without notice.

Best savings account rates in California: Top 2

If you’re in the market for a traditional savings accounts – one with a variable interest rate and limited withdrawal allowances, don’t expect much in the way of great interest rates. The average yield for online savings accounts (money market accounts) are providing yeilds of less than 1.00% APY and the average yield for 12 month CDs (fixed interest rate for 1 year with penalties for early withdrawal) are garnering a rather pathetic 1.50% APY.

However, if you reside in the state of California and are willing to consider a couple of credit unions as potential options for your business, then you may be able to snag some higher rates. Below are summaries of two accounts that have better than average savings rates as well as a unique approach.

First is Alliant Credit Union, based out of San Francisco, California. Their savings accounts are currently yielding 2.0% APY (almost twice the national average for these particular accounts). The only problem with Alliant is that their doors are not open to everyone. If you do not fit within their membership eligibility guidelines then you’re most likely out of luck.

The second option, however, opens their doors to potential customers nationwide so long as you’re willing to open a membership savings account and maintain a balance of $5.00. Provident Credit Union, out of Redwood Shores has many locations throughout California. They have branch locations in Belmont, Dale City, Eureka, Folsom, Hayward, Los Gatos, Oakland, Millbrae, Palo Alto, Redwood City, Redwood Shores, San Francisco, San Jose, San Mateo, San Ramon, Sunnyvale, and Walnut Creek. Their savings account is called the “Accumulator Account” and promises a 1 year savings plan with a much higher rate than their 1 year CD (certificate of deposit). What’s unique about this account is that they guarantee the interest rate through 12 months (even if the market falls drastically). The “floor yield” is determined by the credit union and adjusted in January of each year. For 2008, the interest rate has been set at a now seemingly high 2.00% APY, however this rate will be readjusted next month.

FlagStar’s Interest Checking Account: 2.0% APY for 1 year

FlagStar Bank brought back it’s infamous S.M.A.R.T. checking account this holiday season which is offering an interest rate of 2.0% APY on all balances up to $100,000. PLUS, they guarantee that the interest rate (2.0% APY) will remain for the next 12 months. That is quite unusual considering money market accounts and interest checking accounts are almost always accompanied with variable interest rates which typically fluctuate as varying economic factors change.

If you visit their promotional page highlighting this deal, you will notice that you need to enter your zip code before opening the account. After digging into it a little further it appears that it’s only available to residents in Michigan, Georgia and Indiana. If you live outside of one of those states and were able to take advantage of this offer, please let us know by leaving a comment.

Features of Interest Checking through Flagstar Bank:

• New personal checking account customers only
• Minimum opening deposit of $50
• Direct deposit of income of at least $250 per month
• Direct deposit must be established within first 60 days of account opening

Smarty Pig’s Online Savings Account: 2.01% APY!

Smarty Pig’s online savings account is currently yielding an interest rate which absolutely demolishes the national average for these particular accounts, plus they have some innovative features/tools to help you save!

Smarty Pig’s online savings account rate: 2.01% APY national average: 1.25% APY

SmartyPig, based out of Des Moines, Iowa was launched in April of 2008 and is a banking partner of West Bank and a subsidiary of West Banc Corp. Because West Banc Corp is member FDIC your funds held in Smarty Pig’s savings accounts will be federally insured (by the FDIC) up to $250,000.

Smarty Pig’s Unique Approach to Savings…

Open a goal-based savings account that can be attached to social networking features (Facebook, MySpace, Blogger, Google, etc.) allowing your friends and family to view and even contribute to your savings goals.

You then set a time in which you would like your goal to be completed, along with an initial deposit (the minimum deposit required is only $25.00). You can allow anyone to contribute and view your goal (or nobody) it’s up to you.

Some customers have set up goals to either help pay for Christmas shopping, pay off a credit card, pay off a student loan or save for a vacation.

…And to help you reach your goal they claim to consistently provide a savings rate which beats the national average. The current rate is 2.01% APY.

Best 6 month CD rates paying 1.76% APY

The highest interest rates for 6 month CDs (certificates of deposit) which are nationally available currently sits at 1.76% APY, down roughly 0.05% APY from last week. The current national average for 6 month CD’s sits at 1.16% APY.

Ascencia Bank of Louisville Kentucky currently holds the number 1 spot with its 1.76% yield. They are a national bank and can accept deposits from any state. They require a minimum deposit of at least $500 and your interest is compounded monthly. 

Sometimes banks and/or credit unions offer promotional rates for deposits which carry odd maturities such as 7 month CDs, 13 month CDs or 15 month CDs. America’s Credit Union currently has two noteworthy promotions going on. The first is a 7 month CD paying 2.0% APY with a minimum deposit of at least $500. The second promotion is a 13 month CD yielding 2.15% APY with a minimum deposit of $500 as well. If you know of a better 6 month CD rate (or similar promotional offer) through your local bank or credit union, please share by leaving a comment.

BankOn money market account: 2.05% plus $50

Here is a pretty sweet money market account offer through BankOn. Thanks to BankVibe reader Paul for submitting this one!

BankOn is owned by Pinnacle Bank and offers online checking accounts and money market accounts. Currently, with each new money market account opened they will give you $50 as a sign up bonus along with a very respectable interest rate of 2.05% APY. Keep in mind, this is a variable rate and may change without notice.

Features, terms and conditions:

• $50.00 bonus for opening account
• Online only account
• No required minimum balance after opening
• No paper statements
• No checks
• Free PinnBank – 24-hour online banking
• FreeTelebank
• Free Electronic Statements
• Messenger
• Mobile Banking

Even though they are an online division of Pinnacle Bank, they only accept online applications from Nebraska, Colorado, Kansas, Missouri and Wyoming residents only. If you are not a resident of one of these states, they invite you to contact one of their branches directly for personalized service in opening an account.

H&R Block’s 6 month CD promotion: 2.0% APY!

Here is a very noteworthy CD rate promotion coming out of H&R Block. You’re probably more familiar with H&R Block as a tax service company, helping individuals with their personal taxes through their proprietary software and industry knowledge, however H&R Block offers a fairly wide range of deposit products as well. The rates associated with their standard CD’s aren’t that competitive at this time, but this promotional 6 month CD stomps on the national average by nearly 50% (national average sits at roughly 1.24% APY).

Use the promo code: CD180DAY and follow this link.

Thanks to BankVibe reader Will, for submitting this one to our inbox!

Terms and Conditions:

• minimum deposit amount of $10,000 required
• any early withdrawal could reduce earnings
• FDIC insured up to $250,000
• available from September 1 – September 30, 2009