5% 12-Month CD at a New York Bank

Flushing Savings Bank is offering a 5.00% APY 12-month CD. There's a $5K minimum deposit requirement, and it must be a new deposit. Another requirement for a non-IRA CD is that a Breakout Checking Account must be opened with at least $100. The Breakout Checking Account seems to require direct deposit to avoid fees.

Another choice for this special is a 5% APY 60-month CD with a rising rate option. This bump-up feature gives you a one-time option to raise your rate to a future 60-month CD rate. As is typical for this type of bump-up CD, the CD term remains the same after the bump-up is done.

In my opinion, even with the bump-up option, the 5% 1-year CD is a much better deal. For the bump-up feature to be useful, the bank has to keep the future CD rates competitive. This is not always the case. For example, CapitalOne has done a poor job at this with the No Regrets CD.

Flushing Savings Bank has branches in Queens, Nassau, Brooklyn and Manhattan of New York state.