2.78% APY is an excellent rate on a 4-year CD.   It is also an excellent rate on a 5-year CD.  The 2.78% number is actually much higher than we have seen on a CD of that length in years, and higher than any nationally offered rate.

Community Trust Bank is offering the 2.78% APY rate on both the 4-year and the 5-year product at 6 of its branches in the Lexington, KY market.  If you are lucky enough to live in that market, you have the opportunity to get into a rate that still is very hard to get in much of the rest of the country.

In fact, the rate is so much higher than those offered nationally, if I lived there I might just choose to opt for the 5-year product over the 4-year one, and be assured of locking into an extra year of interest at the 2.78% rate.

Community Trust is offering these products only at its 6 branches in Lexington, Kentucky - its Beaumont branch, its Hamburg branch, its Leestown branch, its Pasadena branch, its Richmond branch and its Vine Street branch.  The rate requires a $1,000 minimum deposit and proof of residency in Fayette County.

You may be able to get a 4-year CD rate or a 5-year CD rate like this at a bank where you live!  Check the best local 4-year CDs here.   Check the best local 5-year CDs here.

Also see the best online 4-year CD rates here and the best 5-year CD rates here.  

Less than two months ago, I locked into a 1-year CD paying 1.35%.   It was the best rate at the time and I really am unlikely to need the cash for the next 12 months (now 10 months).  Nonetheless, I know now that I locked in too low.

The best nationally offered one-year CD rates are now paying close to 1.50%.   One-year CD rates offered by banks or credit unions in your local area or state may even be paying higher.  And, Ally Bank is offering an 11-month No Penalty CD that pays 1.50% on balances over $25,000.  The Ally product gives depositors a much better rate than I am receiving and the ability to break the CD without an early withdrawal penalty. 

But, I am not even so sure that I should have locked into a one-year CD at all.  Savings rates are moving up quickly now with plenty of national offerings at 1.30%.  Again, local rates at banks and credit unions that may be available to you may be even higher.

Since I might need the cash to take advantage of the stock market crash that may come when impeachment proceedings begin in the fall, I certainly now wish I had just foregone locking into a gain over cash of what now looks at best to be just a couple of dollars.

Did you know that at some banks it may not even be possible to redeem your CD early, even with the payment of early termination fees?    

Before getting a CD read our 65 Questions to Ask before Choosing a CD which is also available as a e-book by clicking in the right column. 

Earlier today, EBSB Direct began offering a 19-month CD a 1.61%.  This rate is nationally offered and requires only a $1,000 minimum.

At the time of this writing, this rate is higher than any nationally offered 18-month CD and as high as all but the 5 highest nationally offered 2 year CD rates.   This offer is therefore compellingly priced on a national level.   Of course, there may be higher rates offered in certain markets and you will want to review local rates for 18-month CD rates here and for 2-year CD rates here to see rates in your market before locking in.

Please note that BestCashCow sees short CDs as somwhat compelling now.  However, after the recent Fed move, we think some level of caution is warranted right now around all CD products. Savings rates are rising now, and you run the risk of locking into something that will be offering less than the best savings rates in a matter of months. 

EBSB Direct is a subsidiary of East Boston Savings Bank.  You can learn more about the online bank here, and its parent here.

More information on this and other special-rate CDs can be found here.