CD rates over 2.00% at a brick-and-mortar bank are not easy to find these days. Two of the megabanks, Chase Bank and Bank of America, are currently offering CD rates that are over 2.00%, but there are two big downsides. First, they require a very long term of 10 years. Second, both have a harsh early withdrawal penalty: 3% of the principal withdrawn plus $25. Bank of America is also on my list of inflation dangerous banks since they give themselves the right to refuse an early withdrawal.
For Chase Bank, the special 10-year CD has a 2.25% APY in some states. Other states have a yield of only 1.75%. You can check Chase's CD rates page to see if the 2.25% APY is available in your zip code. I found 2.25% is available in California and New York zip codes as of 12/02/2011. The 1.75% APY was available at Illinois, Texas and Florida zip codes. These Chase special CDs have a $10K minimum deposit, and they require a checking account.
Bank of America's 10-year CD has a 2.30% APY. Like Chase, this can vary by state. I verified this rate for Florida, Texas and California at Bank of America's CD rates page. For California, the yield applied to CDs with terms from 7 to 10 years. For the other states, it only applied only to the 10-year term. This rate was accurate as of 12/02/2011.
Other Options for Long-Term CD Rates
Another option for a CD rate over 2% at a large brick-and-mortar bank is the 59-month CD special at US Bank. The yield is still 2.25% APY as of 12/02/2011. I reported on this CD in this October US Bank CD review. US Bank also gives itself the right to refuse an early withdrawal, and its early withdrawal penalty is even worse than BofA and Chase.
Pentagon Federal Credit Union still offers 2.75% APY for its 7-year CD and IRA CD. My last review of PenFed CDs was in October.
The highest CD rate at a nationwide bank is 2.50% APY at Discover Bank (as of 12/02/2011). It has a term of 10 years, but it has a smaller early withdrawal penalty than the other banks with (9 months of interest). It's even smaller than PenFed's EWP.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.