We’re not seeing a flood of higher long-term CD rates, but we continue to see a few banks come out with higher rates. The latest one is Clifton Savings Bank in Northern New Jersey. It just recently increased its 5-year CD rate to 2.50% APY (up from 1.75%). This rate also applies to the bank’s IRA CD. Minimum deposit is $500, and the early withdrawal penalty is one year of interest (according to a bank rep). There’s also a pretty good deal on a 30-month CD and IRA CD. It has a 1.40% APY. These rates are listed in the bank’s interest rates page as of 2/27/2014.
According to the bank rep, you have to visit a branch with two forms of ID to open these CDs.
Clifton Savings Bank branches are located in the Northern New Jersey cities of Clifton, Fair Lawn, Garfield, Lyndhurst, Wallington, Wayne and Woodland Park.
The bank has an overall health grade at DepositAccounts.com of an A+ with a Texas ratio of 3.06% (excellent) based on September 2013 data. Please refer to our financial overview of Clifton Savings Bank for more details. The bank has been a FDIC member since 1940 (FDIC Certificate # 28633).
How This CD Rate Compares
The highest 5-year CD rate that’s available nationwide is 2.55% APY at Navy Federal Credit Union. This requires a $100K minimum deposit. Membership into Navy Federal has limitations. The highest 5-year CD rate at an institution without membership limitations is 2.20% APY at CIT Bank. This also has a $100K minimum deposit. Barclays has a 2.15% APY 5-year CD with no minimum deposit.