TIAA Bank has taken over the top spot on the 60 Month CD Compare Rates page on MyBankTracker. The bank reported an increase of .11% in its 5-year CD to 2.66% making it the best 60 month rate featured on MyBankTracker.
EverBank has also reported other increases in their 18 Month CD, 12 Month CD and 48 Month CD. Although, the first two have had minimal increases, .09% and .04% respectively, their 4-year CD has had a .31% increase.
The Top Banks
EverBank’s offer is a pretty good one, considering the national average for a 60 month CD rate is approximately 1.50%. TIAA Bank beats out typical leaders like Discover and Ally with the 2.66% rate, the next closest bank is Stonebridge with a 2.65% APY. Stonebridge is a 7-office regional bank that only offers this CD rate to New Yorkers. The next closest nationwide bank is Bank of Internet with a 2.54% APY.
Know the Withdrawal Penalties
This offer does sound appealing, but you have to take withdrawal penalties into consideration. We have compared three different CD rate offers to show the difference in penalty fees. The EverBank withdrawal fee is a whopping 25% of scheduled earnings. Bank of Internet has an even steeper 720 day interest withdrawal fee while Ally has a 60 day interest fee. All the below CDs are based on a 10,000 investment.
Bank APY Earnings Withdrawal Penalty
Everbank 2.66% $1,404 -$350
Bank of Internet 2.54% $1,336 -$525
Ally 2.40% $1,259 -$41
A 60 month CD is a big commitment, it is best for someone who has more than a 6 month salary emergency-cushion and is positive that the money will not be needed. If you are not extremely positive, then it is probably best to calculate out the various withdrawal penalties to see what your final earnings will be. Another option for those who do not want to make a 5-year commitment is to look into CDs with shorter term lengths or flexible CDs.