Highest CD Rates on 5 year CDs – 5/23/12
CD rates is minimal. The rate difference between the highest 1 year CD rates and the highest 5 year CD rates is also minimal.
Right now 1 year CD rates are averaging 0.69 percent while 5 year CD rates are only averaging 1.38 percent, only a 69 basis points or 0.69 percent difference.
The CD rate curve is a little steeper on the FDIC's national average rates. The FDIC's national average 1 year CD rate is at 0.29 percent and 5 year rates are averaging 1.09 percent, an 80 basis points or .80 percent difference.
A flat rate curve makes finding decent 5 year CD rates harder. Thankfully there are some banks offering 5 year CD rates higher than the averages. Not much higher but higher none the less.
Here is our list of banks offering the best 5 year CD rates:
The highest 5 year CD rates listed above are not much higher than the highest 1 year CD rates these days. For example, CIT Bank is offering 1 year CD rates at 1.09% with an APY of 1.10%. Only 0.66 percent lower than the highest 5 year rate.
Interest rates probably won't be declining much lower then they already are. Don't expect rates to move much higher either. That being said if you want to lock in a 5 year rate you'll obviously do better rate wise then locking in a 1 year rate.