The latest bank to raise its 5-year CD rate to 2% is BBVA Compass. On Friday it raised its 5-year CD rate from 1.25% to 2.00% APY. This is the only CD term that is competitive. Its shorter-term CD rates continue to be low. This 5-year CD rate is listed in the bank’s CD rates page as of 9/16/2013. The rates may vary by location, but this 2% appears to be listed for all of bank’s market areas. Thanks to DA member OldGuy for mentioning this new rate in the comments.
Last year BBVA Compass was offering an extra 10 basis points for customers who also open a checking account. I’ll update this post once I learn if this still applies. Also, I’ll update when I get confirmation on the bank’s early withdrawal penalty. Last year I was told that the early withdrawal penalty is equal to $25 plus 1% of the amount withdrawn.
Update: I called BBVA Compass today, and I was told that you can get an extra 25 basis points on the CDs if you also open a checking or savings account with the CD, and your combined balance (can include the CD) is at least $25,000. I also confirmed that the early withdrawal penalty is equal to $25 plus 1% of the amount withdrawn. So if you withdraw $5,000, the penalty would equal $75 ($25 + 0.01*5,000).
To open an account I've been told BBVA Compass requires 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.
Checking Account Promotion
If you do open a Compass CD, you may also want to consider the bank's latest checking account promotion in which you can earn a Samsung Galaxy Tab 3. This is scheduled to last until September 30, 2013. Please refer to my BBVA Compass bonus review for more details.
BBVA Compass is a large bank that operates 688 branches in Texas, Alabama, California, Arizona, Florida, Colorado and New Mexico. It's under the bank holding company Banco Bilbao Vizcaya Argentaria S.A., the second largest bank in Spain.
BBVA Compass has an overall health score at DepositAccounts.com of A+ with a Texas Ratio of 5.98% (excellent) based on June 2013 data. Please refer to our financial overview of BBVA Compass for more details. The bank has been a FDIC member since 1964 (FDIC Certificate # 19048).
How This CD Rate Compares
The highest 5-year CD rate that’s nationally available is 2.05% APY at iGObanking.com. This is accurate as of 9/16/2013.
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.