In the last month we’ve seen several small banks and internet banks come out with 2%+ 5-year CDs as Treasury yields have risen. M&T Bank is the largest bank that I’ve seen to come out with a 2% 5-year CD in the last month. It’s currently offering a 5-year promo CD with yields that range from 1.97% to 2.22% depending on your location. You can see the rates available in your area from this M&T Bank CD page. You first have to enter your zip code to see the rate available in your area. I plugged into several zip codes. Here are a few of the rates for different zip codes as of 8/7/2013:
- 2.22% APY 5-year CD for zip codes 21202 (Baltimore), 19103 (Philadelphia)
- 2.07% APY 5-year CD for zip codes 20007 (Washington DC), 14222 (Buffalo)
- 1.97% APY 5-year CD for zip codes 10001 (NYC)
From the small print under the rate table it appeared this promo CD required a checking account. I called M&T Bank today (800-724-3222), and according to the M&T CSR, this promo CD does not require a checking account. It only requires new money. I also was told the early withdrawal penalty is equal to 180 days of interest. I was not able to find the EWP on M&T’s website.
According to the CSR, a branch visit is required to open this promo CD. Most of M&T Bank branches are located in New York, Maryland, Pennsylvania, Virginia, Washington, D.C., West Virginia, Delaware and New Jersey.
Thanks to the DA member who mentioned this 5-year promo CD in the comments.
M&T Bank is a large regional bank with over $81 billion in assets and over 700 branches which are mostly in the Mid Atlantic states. It has been growing from several acquisitions. Some of the banks that it has recently acquired include Wilmington Trust and Provident Bank, and it’s in the process of acquiring Hudson City. Many DA members remember the unfortunate acquisition of Wilmington Trust which ended Wilmington Trust’s internet division WTDirect.
The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 13.14% (above average) based on March 2013 data. Please refer to our financial overview of M&T Bank for more details. It has been a FDIC member since 1934 (FDIC Certificate # 588).
How These CD Rates Compare
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.