First Choice Bank
Well, we know that average CD rates have continued to drop and so have the best cd rates. It wasn’t long ago that we were discussing 5-year rates above 3%. Now, we’re happy if a rate is close to 3%. According to BestCashCow’s local rate average (which I believe to be the most comprehensive CD rate average) the average 5-year CD rate is now yielding 1.60% APY. Yikes! Why would anyone lock their money away for 5 years for 1.60%? Especially if it looks like the economy may be improving – maybe, just a little.
Anyway, to get a bit more yield we took a survey of banks and found First Choice Bank. They are offering a 60-month CD (same thing as a 5-year CD) for an average busting 2.80% APY with a reasonable $1,000 minimum balance. The bank has five branches in central Jersey (not sure which highway, ha, ha). But the good news is this isn’t some bank located in Fargo, no offense to those in North Dakota but you frigid midwestern states seem to have the best rates. Anyway, if you live in their area, check them out. They are FDIC insured and it might be worth stashing money their for 2.80% versus hiding it under your mattress.
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Filed under: Bank Deals
