In a Sept. 11 post, I noted the screwed up state of interest rates on super-safe investments. My evidence was an offering from the Pentagon Federal Credit Union of a 1-year insured CD, paying 1.06% with just a $1,000 minimum investment.
Pretty good, but the problem was that PenFed’s 2- and 3-year CD rates dropped to 1.05% and the 5- and 7-year CDs were paying a measly 1.21%.
Ridiculous, I noted. But now PenFed has attempted to repair that problem by upping its rates to more attractive levels, at least for 5- and 7-year CDs. These new rates are logical and competitive nationally.
According to BankRate.com, the national average for a 5-year CD is 1.87%, but you can find higher, such as:
- 2.30% at Synchrony Bank
- 2.53% at Chartway Federal Credit Union
- 2.25% at Barclays
- 2.25% at GE Capital Bank
My hometown credit union, Truliant, is paying just 1.40% for a 5-year CD with a minimal deposit. It shows how important it is to shop around when you have a CD maturing.