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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Remaining Large Banks Still Offering 2-Percent CDs


Who would have thought 5 years ago that it would now be difficult to find CDs with yields of at least 2.00%. Even when rates were very low in the early 2000's, ING DIRECT's Orange savings account was paying 2.00%. Two years ago I reviewed the few remaining savings accounts that were still offering 2.00%. Rates have continued to fall, and now the list of 2-percent CDs is small.

It may seem unwise to lock into a CD with such low rates, but no one knows how long these low rates will last. If you have always maintained CD ladders, it's hard to argue that CD ladders no longer make sense.

If you want a CD with a yield of at least 2.00%, you will probably need a maturity of at least 5 years. There are still several small credit unions and banks offering 5-year, 7-year and 10-year CDs with yields of at least 2.00%. You can see what's available by using our CD rate table. Use the "Filter Accounts" button to see what's available in your state. Unfortunately, many of these small credit unions and banks are not widely available and are not in many of the large states.

In this post I'll just review three sizable banks that still offer 2% CDs.

Rates accurate as of 8/20/2012

Large Banks

BBVA Compass - This is the only sizable bank that I'm aware of that still offers a 2% APY 5-year CD. I first reported on this in February. My last review was in June. Even though BBVA Compass is a large bank, their CDs are not available nationwide. When I last checked with the bank, I was told that they require new customers to live within 60 miles from a branch. BBVA Compass branches are located in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas.

Third Federal is smaller than BBVA Compass, but it allows new customers to open accounts online from any state. The downside with Third Federal is that you'll need a 6-year term to get a 2.00% APY. My last review of this CD was in July.

Discover Bank - Unlike the other two banks, you can't open a Discover Bank CD at a branch. Discover Bank is an internet-only bank. Also, unlike the other two banks, you'll need a 7-year term to get a 2.00% APY. It also has a 10-year CD with a 2.10% APY. That's not much of a premium for 3 more years. One nice feature of these long-term CDs is a mild early withdrawal penalty. I described the benefit of this in my last long-term CD comparison post.

Credit Unions

There are more credit unions than banks offering 2% CDs, but 2% CDs have also become hard to find at credit unions especially for terms under 7 years. You can see these credit unions in our 5-year CD rate table and 6+ year CD rate table.

By default, the table shows those credit unions that are nationally available and have "easy restrictions" for membership. That means they provide an easy way to qualify for membership. For example, joining an association that's open to all will qualify you for the credit union membership. Several of these credit unions allow you to join the association and apply for credit union membership in an online application.

To see more credit unions, select the "Filters Accounts" button at the top of the table. You can change the credit union selection from "Easy restrictions only" to "All". This will expand the list of credit unions to include those which have eligibility limitations. One example is Navy Federal Credit Union which is primarily limited to those who have some military connection. Also on the list is American Airlines Credit Union and Wings Financial Credit Union. Both are primarily limited to those who work in the air transportation industry. Wings Financial is also open to those who live in parts of Minnesota and Washington State.

If you're lucky, you may find that your state has many credit unions offering 2% CDs. Texas and Iowa are two states that have the best CD rates. You can see what's available in your state by selecting "Local" in the "Filters Accounts" box, and then selecting your state. Please note that just because a credit union is listed for a state, doesn't mean all state residents are eligible to join. We list all credit unions with branches in the state. The credit unions may limit membership to residents of certain cities or counties. Also, many credit unions limit membership based on employer groups.

Future CD Rates?

One of these days we will finally see a turn-around in CD rates. I'm going to be careful in declaring that we have reached a bottom since there have been many false alarms over the last few years. I sure hope that I won't have a future post with the title "Remaining Large Banks Still Offering 1% CDs".

Related Pages: CD rates

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Anonymous   |     |   Comment #1
Making sure Obama is a one term president will do wonders for all the financial markets.
Anonymous   |     |   Comment #2
The interest rates are low for so long time, that any movement up will disrupt the whole banking system and create crisis at Government level with all that debt piling up. Inflation is not an option at this time no matter how much money Bernanke prints, but what is the answer?

Believe it or not it is very simple, start paying the national debt with low to medium interest bonds due in 15-30 years sold to the public at home and or abroad. The savers will  get some breathing space and that will buy us some time to solve the entitlements and welfare fraud, create some jobs and stop the debt ceiling insanity. All of the money stay in the country since we can produce all of the energy and food we need. The FED will become irrelevant and the treasury will  keep the tab.

All we need is a fiscal discipline and someone to implement that, and I don’t think it would be the community organizer. In 15-30 years, the national debt would be the same as today, but with the economy at double the size as of today, will not feel the burden of such debt as we feel it today and as the bonds are maturing, new ones will be issued to pay the old ones.

Lets face the reality, we can never pay off our current debt, but we can contain it and stop it from destroying our country.
george1837   |     |   Comment #3
Sadly, discipline that no longer exists.  About the only discipline our Congress and our illustrious last two presidents know is how to fatten their own pockets.  We're progressing (or regressing) to the same state as our immediate southern neighbor, Mexico, a land, a people, so corrupt that no one can contain it.  My experience with their corrupt system goes back to 1958.  This is what which once a great nation, the U.S. is gravitating toward.

Were it not for the ongoing Europian crisis, our Treasury rates would be signififcantly higher.  Bernacke would be able to hold them down some, but not all. 



Paoli2   |     |   Comment #4
I would like to make members aware of new differences I have come up against with certain banks and credit unions on their Early Withdrawal Penalties which they are not disclosing in their Disclosure Terms.  I purchased some 5 year CDs at one of the banks on Ken's list giving 2.20 % and I called today to verify that they abided by their Disclosure Terms.  It reads:  "The penalty will be an amount equal to 180 days interest on the amount withdrawn".  That always has meant that if we have a $25,000.00 CD and end up needing a portion of it later on like $5,000 etc. we would pay the penalty on the "amount withdrawn and the rest of the CD would stay intact at the same CD rate.  The bank says this is not the way they do it.  IF one needs "any" of the money before maturity, we have to cash in the entire CD and pay the penalty on all of it and then we can repurchase a new CD for the amount left over.  I called the head of their CD dept. and told her that the Disclosure was misleading.  It also states

"If you withdraw some of your funds before maturity, the interest rate for the remaining funds in your account will be  ___________ (whatever it is when you purchased it) with an annual percentage yield of __________ (the same).

In over 40 years of purchasing CDs I have never had to close a CD to withdraw  just a portion of it or pay a penalty on anything but the amount withdrawn.  I told them this process only encourages customers to take the rest of the money to another bank or credit union instead of keeping it with the same bank.  Has anyone else done business with a bank which follows these procedures?  I told them their Truth Disclosures are very misleading and need to be changed so customers will understand how their particular EWP system works.  Instead of puttting a large amount in a CD, I was encouraged to break it up into several smaller CDs which I intend on doing.

BTW, if you have an account at Navy Federal, they, too, have a unique EWP process.  If you have a CD with a $10,000.00 minimum you get penalized for the entire amount even if you only need $5,000.00 of the CD.  Any withdrawals which cause your CD to go under the minimum forces you to close it and pay the EWP on entire amount.  This has never been the way it was done in the past with my banks or credit unions.  This must be the "new day" for EWPs.  The problem that irritates me is that they aren't changing the wording of their EWP info to let us know what we are getting into.  So I suggest one calls or asks exactly how their EWPs work before purchasing CDs from now on.  I certainly will!
dmprisk   |     |   Comment #5
I wish you could post how the interest is compounded. Example: Compounded Daily credited Monthly.

Sometimes it's time consumming to try to find it on their websites.

I gave up trying to look for this credit union when the list of eligible membership didn't include me.
Anonymous   |     |   Comment #6
To Paoli2 - I always get their terms, especially if they seem unlear or misleading, in writing.  If the head of the bank's CD dept. doesn't put MY CONCERNS in writing, with a signature, NOT a form letter - they DON'T get my money.  Too many to choose from these days - unfortuately, all miserably low rates!  
Paoli2   |     |   Comment #8
#6 &#7  What is so pathetic is that this bank's officers do not even understand how to read the terms of their own Disclosure.  The problem is they are probably the only bank left in my state with a bit over 2% five year CDs and a 6 month EWP!.  Ordinarily I would not even deal with the bank but at this point it has a 5 Star rating (believe it or not!) and I need them more than they need my deposits.  How things have turned around for savers!  I feel like I am living in the real black hole!
Anonymous   |     |   Comment #7
to Paloi2 and #6 It does not matter if he signed it or not after all he is just the bank mgr and not the bank..The system is so corrupt today that the institutions can do whatever they want with there disclosures,the only thing one should worry about is are you insured.and is your money covered.....The INTEREST RATES TODAY are PATHETIC..
Anonymous   |     |   Comment #9
Re: Paoli2 - #8, Monday, August 20, 2012 - 6:34 PM

"I need them more than they need my deposits."

Therefore the banks can do what they want and their law teams will prevent you from doing anything about it. Face the facts Paoli, everything is corrupt in the banking industry now because it's a revolving door for regulators and the bankers. After 7 year certificate yields dropped below 3 percent the game was up anyway for years down the road.
Kaight   |     |   Comment #10
To #1:

I'm concerned you could be correct.  As a saver I'd give anything to know now November's outcome, regardless what it might be.  If President Obama is re-elected I will feel great about my existing long term CDs.  But if Romney is elected the turnaround could start long before January 20, 2013 and I'm not really prepared for that.  There is a huge amount of money on the sidelines because smart people with money don't trust a redistributionist or know what the future might hold beneath four more years of redistributionism.

It's so different with Romney, and now especially with Ryan.  Under Romney that sidelined money will be put to work.  Those guys will get America going again which means interest rates could commence rising at any time.  If Romney gets in I will be very nervous about my long term CDs, knowing I'm gonna have to cash them in sooner rather than later.  With President Obama we will instead have predictability.  Things will continue to be predictably very bad, and my existing long term CDs will be just fine.  Heck, I might even buy more!!
Paoli2   |     |   Comment #11
#10  I was battling with my DD today about your very same argument between Obama and Romney.  I would rather put up with my 5 year CDs knowing we had a President who actually might be able to save our country financially.  However, with the platform Romney is stuck with he is going to lose a lot of voters and I doubt if even with Ryan's help, he can beat Obama.  I hope he does but he has a tough boat to row. 
Anonymous   |     |   Comment #12
My vote will be for Romney, but my money is on Obama. 
Anonymous   |     |   Comment #13
Kaight - Great post! You have absolutely nailed it and I could not agree with you more.
Anonymous   |     |   Comment #14
As far as the seniors, savers, are concerned, which includes me, notice the number of reverse mortgage commercials lately? They realize that our cash reserves, read savings,  are being cleaned out so now I guess they are trying to take our homes also. And after that.........
Paoli2   |     |   Comment #16
Hoody:  Very interesting article and sad that this is what it all has come to.  Some seniors may think a dinner at Shoney's is a great night out.  We prefere Captain D's senior dinners.  I think that is how we celebrated our 51st anniversary!  But who celebrates after the first 50 years? :)  When our CDs mature now I get very concerned knowing how lucky I will feel if I can find a 2% 5 year CD out there.  This is a sad state of affairs after all those years of "trying" to save for a better life.  It's so hard not to be scared about the future.  I think those of us who were raised by parents who survived the Great Depression are luckier than most.  We were trained to live our lives very frugally.  I really am concerned for the younger ones who got used to the better things in life.
Anonymous   |     |   Comment #17
LOL at all the "Romney will be good for savers" comments.


Those people must have inherited most of their money.
Anonymous   |     |   Comment #18
Laugh all you want but Romney didn't get wealthy by wasting his money!  He at least knows the difference between having money he can spend and just printing "play" money pretending it is real!  
Shorebreak   |     |   Comment #19
It doesn't matter who gets elected. It's the same story...

"Fed chief Bernanke should stick around, Romney adviser says."
Anonymous   |     |   Comment #20
There goes more votes against Romney!  He definitely gave the impression he was not going to reappoint Bernanke!  Guess we better load up on as many long term CDs as we can find!  What a downer!
lou   |     |   Comment #21
I don't care what this guy thinks. So far Romney has said he will not reappoint Bernanke, and until I hear differently from him, I will assume this guy is blowing smoke. We all know what Obama will do.
Paoli2   |     |   Comment #22
I just listened to and reread that article.  It's Romney's advisor who is saying this.  As far as we know Romney has not come out and agreed with him.  That doesn't mean he won't and if he does, he sure won't get my vote.  Like we can really trust what any politician says when he is running for a position. 
Anonymous   |     |   Comment #23
He's not going to reappoint Bernanke & i'll tell you why...............Regardless of anything else, Romney/Ryan are going to portray the rescue of 2008-2009 & subsequent QEs as failures............& you don't reappoint the guy who captained the failed effort, end of story.
Shorebreak   |     |   Comment #24
Wall Street controls both candidates and the street likes Bernanke. End of story.
Anonymous   |     |   Comment #25
If you posters are right, we had better grab all the long term CDs we can!  End of story and our nation as we once knew it.
Hoody   |     |   Comment #27
and BTW I did look at the "policy" and don't see where there was anything in my post that was on that list, I did LINK the page, there wan't any BAD language ect , or I'm sure paoli2 wouldn't have commented as she did.
Anonymous   |     |   Comment #28
Shorebreak.......Care to put your money where your mouth is? Name the wager.
Shorebreak   |     |   Comment #29
Anonymous - #28, Thursday, August 23, 2012 - 6:25 AM

Shorebreak.......Care to put your money where your mouth is? Name the wager.

With just another "anonymous" face in a crowd? Ha ha!

Besides, Wall Street is giving loads of money to both the Romney and Obama campaigns. The banksters expect a return on their investment. Enough said.
Paoli2   |     |   Comment #30
I am also confused about Hoody's post #15 being deleted.  He posted an article which I found to be informative.  Are articles being censored too?  It seems others liked the post from the votes he got.  I think when it is a regular poster like Hoody, they have a right to know why they are deleted.  We can't change ways that get us deleted unless we know "why" we are deleted.  My recommendation is just to post a "for abusive language etc."  or "off topic" by the deletion tag.  That would help us do better in our postings and not cause good posters to get angry and leave the group.  Thank you.
Dan B
Dan B   |     |   Comment #31
Shirebreak........You have my word. Stop laughing! I can see we're both into racecars. Are you still at it? I'm doing the occasional F2000 "arrive & drive" through the different school racing programs.
Paoli2   |     |   Comment #32
A relative just emailed me this:


Looks like we have to grab those long term CDs while we can.  This is so depressing!
Shorebreak   |     |   Comment #33
RE: Dan B (anonymous) - #31, Thursday, August 23, 2012 - 8:08 AM

Shirebreak........You have my word. Stop laughing! I can see we're both into racecars. Are you still at it? I'm doing the occasional F2000 "arrive & drive" through the different school racing programs.

I used to do some club racing. Started in Formula 3 with a friend's loaner Cooper in the old days then had fun in a Lotus 7 for a while. Retired from all that now and go to historic races for entertainment. I still manage to zip around in the hills near where I live in my toy, a Mazda MX-5 Miata.
Kaight   |     |   Comment #34
For those who assert Romney will reappoint Bernanke:

The problem, instead, is as I have written here prior:

With Romney in, Bernanke is gone.  But that's not the worry.  The worry, under Romney, is about who succeeds Bernanke.  And Romney is so liberal that any Bernanke successor could be just as bad or worse.  Remember, it was Bush who first appointed Bernanke, not President Obama.

We require not just the replacement of Bernanke alone.  We need a Fed Chairman who does not think like Bernanke thinks.  And that's going to be a very tough get.

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