Update 5/25/2012: The 5-year Premium Money Market CD rate has fallen. According to the CSR, it's now 1.65% APY (down from 1.80% APY on 5/11). This is for California. Rates may vary for other states.
It's not common to find competitive CD rates at large brick-and-mortar banks, but I found one at Bank of the West. It's offering a 2.00% APY 5-year CD. This is the bank's Premium Money Market CD which requires a $2,500 minimum deposit. The rate isn't listed online, and it may vary by state. I called the bank yesterday (3/27/2012) and verified it for the bank's branches in California and Nevada.
I'm not sure why these CDs have the name Premium Money Market CD. According to Bank of the West website, these have fixed interest rates and terms. According to the bank CSR, they don't have any additional requirements. I was told that the early withdrawal penalty for CDs with terms over one year is
180 days of interest on the amount withdrawn (Update 3/30/12: Readers have reported being told higher EWPs at different branches. Make sure to read the disclosure at the branch before opening the CD). Unfortunately, the disclosure is not online. I was told that rates are generally updated on Thursdays. The CSR didn't think this 5-year CD rate would change soon, but it is subject to change at anytime.
If you do open this CD, you might also want to consider taking advantage of Bank of the West's checking account promotion in which you can earn $100. I reviewed this promotion in this March 19th post. One downside is that the bank ended its free checking earlier this year.
Bank of the West Overview
Bank of the West branches are located in the states of Arizona, California, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, and Wyoming.
Bank of the West is a large bank with $62 billion in assets. It has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 8.86% (above average) based on December 2011 data. Please refer to our financial overview of Bank of the West for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 3514).
How This CD Rate Compares
Two percent CDs are not easy to find these days especially at large banks. US Bank is still offering its special 59-month CD with a 2.00% APY. BBVA Compass used to offer 2.00% 5-year CDs, but it recently cut the yield to 1.75%.
The best 5-year CD rates are available at credit unions. For all-access credit unions, the best rate is 2.35% APY at Justice Federal Credit Union for a $100K minimum (2.25% APY for a $500 minimum). If you have a military connection, you may be able to qualify for Air Academy Federal Credit Union which has a 2.45% APY 5-year CD for a $10K minimum deposit.
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.