It's getting harder finding 2% CDs especially at large banks and credit unions which are available to large parts of the country. One large credit union that's still offering a 2% CD is Police and Fire Federal Credit Union. It has a 2.00% APY 5-year CD and IRA CD with a $500 minimum deposit. Its 3-year and 4-year CD rates are also competitive with yields of 1.50% and 1.75%. These rates are listed on the credit union's rates page as of 8/15/2012.
PFFCU had been offering 3% 5-year CDs a year ago, but the rates fell last August and last January. The yield has remained at 2.00% since January so hopefully, we won't see another drop for a while. PFFCU has been transparent in explaining why they have lowered their rates. It basically comes down to low loan demand and very low Treasury yields.
One downside with PFFCU long-term CDs is a large early withdrawal penalty. According to the PFFCU's fee schedule, the EWP for terms of 30 months and longer is up to 360 days of interest.
The one nice feature of PFFCU is their field of membership. They still list Weavers Way Cooperative Association in their members group. Unfortunately, they have an additional limitation for Weaver Way members. They must also be Pennsylvania residents. At least this allows anyone in PA to join. Weavers Way Cooperative has instructions on membership on this webpage. It appears you can join for $30. Once you are a credit union member, you are under no obligation to retain membership in that association.
For more details about PFFCU membership, please refer to the PFFCU membership eligibility page.
Police and Fire Federal Credit Union branches are located in Philadelphia and its suburbs.
It's a large credit union with over $4 billion in assets. It has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 1.90% (excellent) based on March 2012 data. Please refer to our financial overview of PFFCU for more details. The credit union is federally insured by the NCUA (Charter # 2551).
How These CD Rates Compare
The highest 5-year CD rate that's nationally available is 2.12% APY for a $60K minimum at US States Senate Credit Union. The next best without checking requirements is 1.96% APY at Melrose Credit Union. These rates are accurate as of 8/15/2012.
Searching for the Best CD and IRA CD Rates
To search for the best nationwide rates and the best rates in your state, please refer to the following sections of DepositAccounts.com: