The best CD Five year certificate of deposit rates are holding solidly above 2.00% one more time.  The average rate found on the top ten best five year bank CDs stood at 2.176% going into the first week of September.  Of course, not all long term bank CD rates are moving to the upside.  The national average rate for a five year certificate is at 0.77% on September 2, down from 0.78% on August 25th.

The top five year CDs are not only performing better than the national average rate, as one would expect, but the rate of return has increased at much greater rate for the highest yielding CDs over that of the averages throughout the year. 

At the start of 2014, the average rate earned on the top performing five year bank CDs was 2.043%, a rise of just over 13 basis points from beginning of the year to the current levels.  One basis point is equal to 1/100th of a percent.  In comparison, the national average rate for five year term CDs was 0.75% at the onset of 2014 or only two basis points from where it is today. 

As the top CD rates have moved higher, not only has the average rate failed to keep up the pace, but Treasury yields with similar terms have moved in the opposite direction.  Last week the five year Treasury rate shed five basis points, dropping to 1.63%, and is now down nine basis points from the start of 2014 when the five year Treasury yield was 1.72%.  Treasuries often lead long term movements in bank rates and are seen as comparable safe and secure fixed income investments as both investments are backed by the full faith and credit of the US government.

The current banking leaders in the long term CD maturities are Synchrony Bank and EverBank.  Both banks offer outsized five year CD yields of 2.30%.  Three banks are running right behind these term leaders.  GE Capital Bank, CIT Bank, and Barclays Bank all promote a five year certificate with an interest rate of 2.25%. 

Rounding out the ten banks with the highest five year CD rates available nationwide are State Farm Bank, Sallie Mae Bank, Discover, Nationwide, and CSBDirect.  A list of all ten bank rates with the contact number and minimum deposit requirements can be found at the best five year CD rates table at

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