You are viewing rates across Alabama
Below are 5 year CD Rates from banks that are located in Alabama. Five Year Certificates of Deposit (CD) are generally the longest term CD that most banks will offer. They tend to offer the highest rates but require the longest commitment. Five year CDs are especially popular in a declining interest rate environment as depositors can lock money in at the highest rate possible for the longest period of time. They are also popular with depositors who are willing to lock up money for five years in return for extra yield.
AL - September 27, 2016
5 Year CD National Average : 1.15% ?
|State Bank & Trust||1.76%||$500||-|
|The First National Bank And Trust||1.76%||$1,000||-|
|Armed Forces Bank, National Association||1.75%||$500||-|
|First Partners Bank||1.70%||$1,000||-|
|First Southern State Bank||1.61%||$500||-|
|First National Bank Of Pulaski||1.55%||$10,000||-|
|The Farmers & Merchants Bank||1.51%||$2,500||-|
|The Citizens Bank||1.50%||$1,000||-|
|First Jackson Bank, Inc.||1.50%||$1,000||-|
|Cullman Savings Bank||1.50%||$1,000||-|
|River Bank & Trust||1.50%||$1,000||-|
|Liberty Bank And Trust Company||1.46%||$100,000||-|
|Progress Bank And Trust||1.41%||$1,000||-|
|Southern Community Bank||1.40%||$1,000||-|
|The Exchange Bank Of Alabama||1.35%||$1,000||-|
|Liberty Bank And Trust Company||1.35%||$1||-|
|Union State Bank||1.30%||$500||-|
|Oakworth Capital Bank||1.30%||$10,000||-|
|First Us Bank||1.29%||$500||-|
|First Southern Bank||1.28%||$1,000||-|
|First Bank Of Boaz||1.26%||$1,000||-|
|West Alabama Bank & Trust||1.26%||$1,000||-|
|Hnb First Bank||1.25%||$500||-|
|State Bank & Trust Company||1.25%||$1,000||-|
|Fnb Of Central Alabama||1.25%||$500||-|
|Citizens' Bank, Inc.||1.25%||$1,000||-|
|Metro City Bank||1.24%||$1,000||-|
|Traders & Farmers Bank||1.15%||$500||-|
|Cadence Bank, N.a.||1.15%||$500||-|
|Merchants Bank Of Alabama||1.10%||$500||-|
|Pnc Bank, National Association||1.10%||$10,000||-|
|Peoples Bank Of Alabama||1.10%||$1,000||-|
|Southern Independent Bank||1.07%||$100,000||-|
|Trustmark National Bank||1.06%||$1,000||-|
|Merchants & Marine Bank||1.06%||$1,000||-|
|Ccb Community Bank||1.06%||$500||-|
|Citizens Bank & Trust||1.05%||$500||-|
|Southern Independent Bank||1.05%||$500||-|
|Central State Bank||1.00%||$500||-|
|Bank Of The Ozarks||1.00%||$1,000||-|
|The First National Bank Of Brundidge||1.00%||$500||-|
|Bank Of Wedowee||1.00%||$1,000||-|
|First Community Bank||1.00%||$500||-|
|Citizens Bank & Trust, Inc.||1.00%||$500||-|
|First Community Bank Of Cullman||1.00%||$500||-|
|Community Bank, Coast||1.00%||$1,000||-|
|The First, A National Banking Association||1.00%||$1,000||-|
|Noblebank & Trust||1.00%||$1,000||-|
|Vantage Bank Of Alabama||1.00%||$500||-|
|Escambia County Bank||0.95%||$10,000||-|
|Pnc Bank, National Association||0.95%||$100,000||-|
|Beal Bank, Ssb||0.91%||$1,000||-|
|Robertson Banking Company||0.90%||$1,000||-|
|Sweet Water State Bank||0.90%||$1,000||-|
|Cb&s Bank, Inc.||0.90%||$1,000||-|
|Small Town Bank||0.90%||$500||-|
|National Bank Of Commerce||0.90%||$500||-|
|Southern States Bank||0.88%||$500||-|
|Farmers And Merchants Bank||0.87%||$1,000||-|
|Southcrest Bank, National Association||0.85%||$500||-|
|Troy Bank & Trust Company||0.80%||$1,000||-|
|Community Spirit Bank||0.78%||$10,000||-|
|Bank Of Brewton||0.75%||$1,000||-|
|Woodforest National Bank||0.75%||$500||-|
|First Federal Bank, A Fsb||0.75%||$500||-|
|Bank Of Walker County||0.75%||$500||-|
|Commonwealth National Bank||0.71%||$500||-|
|Pnc Bank, National Association||0.70%||$0||-|
|The Commercial Bank Of Ozark||0.70%||$1,000||-|
|Branch Banking And Trust Company||0.50%||$10,000||-|
|Citizens Trust Bank||0.40%||$500||-|
|Wells Fargo Bank, National Association||0.35%||$10,000||-|
|Citizens Trust Bank||0.35%||$100,000||-|
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Five year CDs are the big kahuna of the CD world. While banks may offer six year, seven year, or even 10 year CDs, the five year is the most longest of the most common terms. Because they are the longest term, they also generally offer the highest rate of any CD term and the temptation for those looking for yield, is to open one, deposit money, and forget about it for five years. This could be a mistake. In low rate, or rising rate environments, a five year CD may not be a good investment.
Like every other CD term, five year CDs from FDIC insured banks are protected up to FDIC limits (generally $250,000 per account holder per bank). If your deposit is over the FDIC limit then you may not receive the uninsured money in case of a bank failure.
The principle threat to a a five year CD is inflation. If the CD is opened in a low rate environment, and rates and inflation subsequently rise, then inflation will erode the value of the certificate of deposit over its five years. For example, if a depositor opened a five year CD in year 1 with a yield of 2.05% APY and inflation at 1.5%, then the real return is .55 percentage points. But if inflation rises the next year to 2.5% and stays there for the next four years, then the CD in real terms is losing money every year: 2.05% - 2.5% = -.45%.
While it is impossible for anyone to predict too far into the future, savers should be cognizant of the economic environment before locking up money for a five year time-period. Our rate analysis page provides some insight into where we think rates will go.
On the other hand, if rates are falling and will continue to do so for some time due to an economic recession then it makes sense to lock in a higher rate with a five year CD. Savers who opened five year CDs in 2008 immediately after the financial crisis were able to lock in rates in the 6% range, a great move considering two years later a five year CD paid below 3%.
Five CDs currently pay about 70 percentage points more in interest than a one year CD. In general, CDs of this duration are best opened as part of a laddered CD portfolio or if the depositor thinks that rates will either stagnate or drop over the next couple of years.
Opening a five year CD in a branch is relatively easy and similar to every other CD term. Most banks require the customer be a resident of the United States and most branch-based banks ask that the account be opened in the bank. Funding can be performed by transferring money that is already located at that bank or by check or ACH transfer from another bank. The CD can be opened that day and the rate locked.
With longer term CDs, savers should make sure they put a record of the CD in a safe place and that if they move, they forward their new address to the bank. In cases where the bank cannot find the CD holder, the bank may hand the funds over to a state authority as a lost deposit, and it will require onerous paperwork to reclaim the money.
All banks listed on BestCashCow are FDIC insured; BestCashCow.com strongly recommends that you stay within FDIC insurance limits and that if you are unsure of how the limits affect you, you visit the FDIC website.
To understand all of the income generating options available to a saver, please view the Income Generating Investments Comparison Chart.
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