Update 10/13/2011: The 5-year CD rate has fallen.
If you're looking for a long-term CD, many credit unions continue to offer higher rates than banks. I reviewed many of these last Friday. If you prefer a bank, 5Star Bank is currently a good choice. It's offering a 5-year CD with a 2.25% APY. Its other CD terms are not quite as competitive. Minimum deposit is $1,000. This 5-year CD rate is listed in the bank's rates page as of 10/10/2011.
I called the bank on Friday and confirmed that the CDs are available nationwide. They have a PDF of the CD application available at their CD page. This application needs to be mailed with your check. With rates falling so quickly these days, mailing an application is worrisome. The CSR instructed me to include a copy of the rate sheet with the desired CD and rate highlighted.
I couldn't find a disclosure on the website with the CD details. I was told that the early withdrawal penalty for the 5-year CD is 180 days of interest.
It's a small bank with four branches in Colorado Springs, CO. The bank used to specialize in issuing credit cards to military personnel, but it sold its credit card portfolio last year.
Checking Account Bonus for those in Colorado Springs
The bank is also offering a bonus for opening a checking account with direct deposit. It's labeled as a $150 bonus, but this is composed of a $100 cash bonus and a $50 savings bond bonus. More details are in this forum thread.
5Star Bank Overview
The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 2.89% (excellent) based on June 2011 data. Please refer to our financial overview of 5Star Bank for more details. The bank has been a FDIC member since 1985 (FDIC Certificate # 91005).
How This CD Rate Compares
As I mentioned above, the best 5-year CD rates are currently available at credit unions. The highest rate at an all-access credit union is 2.75% APY (2.85% for $100K) at Firstmark Credit Union (as of 10/10/2011). You can get 2.86% APY at Digital Credit Union, but this requires a relationship checking account.
For banks, 5Star Bank's 5-year CD rate is currently the highest for nationally available 5-year CDs. The second best is 2.20% APY at First Internet Bank.
Rates are accurate as of 10/10/2011.
Searching for Top CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.