We’re now seeing some large banks raising their long-term CD rates. The latest is Fifth Third Bank which is offering a special 4-year CD with a 1.50% APY. You can get a higher 4-year CD rate at a few internet banks and credit unions, but this 1.50% APY is competitive especially for large banks. There are also shorter-term CD specials: a 1.25% APY 38-month CD and a 1.00% APY 28-month CD. Minimum deposit is $5,000, and a new or existing checking account is required. These rates are listed in Fifth Third’s CD promotional page. The offer is scheduled to end on 10/31/2013.
The early withdrawal penalty for CD terms of one year or longer is “1/2 stated interest for the remaining term or 6 months interest, whichever is greater.” That can be a large penalty if the CD is closed early into the term.
A branch visit is required to open these CDs. On the promotional page, there’s a coupon that needs to be printed and provided to your nearby Fifth Third branch. You can also show it using your mobile device.
Fifth Third Bank has over 1,300 full-service locations in the following eastern and midwestern states: Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Missouri, North Carolina, Pennsylvania, Tennessee and West Virginia.
Fifth Third is a large regional bank with $121 billion in assets. It has an overall health score at DepositAccounts.com of A+ with a Texas ratio of 7.88% (excellent) based on June 2013 data. Please refer to our financial overview of Fifth Third Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 6672).
How This CD Rate Compares
This special isn’t quite as nice as the CD special that BBVA Compass recently launched (2% APY for 5-years). BBVA Compass is another large regional bank. As I mentioned, you can get higher 4-year CD rates at some internet banks and credit unions. For example, both Melrose Credit Union and Andrews Federal Credit Union offer 4-year CD with a 1.71% APY. The internet bank MidFirst Direct has a 4-year CD with a 1.75% APY, but this isn’t available in all states. iGObanking.com, which is nationwide, has a 4-year CD with a 1.65% APY.
These rates are accurate as of 9/18/2013.
To search for nationwide CD rates and CD rates in your state, please refer to the CD rates table of DepositAccounts.com.