New Jersey

Image Courtesy: pixabay.com

You are viewing rates across Union City


Union City, New Jersey CD Rates – 5-Year 2020

Below are 5-year CD Rates from banks that are located in Union City, { New Jersey}. 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.

Union City, NJ - April 9, 2020

5 Year CD National Average : 1.11% ?

Advertiser Disclosure
Banks APY MIN MILES ?
1.85% $500 4836.53
1.80% $1,000 -
Warning: Early withdrawal penalty equals two years of interest.
1.75% $10,000 4837.04
1.75% $500 4836.94
1.70% $500 4793.82
1.70% $1,000 4835.77
1.65% $90,000 4830.97
1.65% $100,000 4834.66
1.65% $1,000 4830.10
1.61% $1,000 4830.32
1.56% $500 4831.07
1.55% $1,000 4830.97
1.55% $100 4829.13
1.51% $100,000 4836.13
1.50% $1,000 4834.40
1.50% $1,000 4834.66
1.46% $2,500 4836.13
1.45% $500 4839.37
1.42% $500 4829.67
1.40% $500 4834.72
1.40% $500 4820.38
1.40% $500 0.00
1.40% $1,000 4834.30
1.35% $1,000 4847.57
1.31% $500 4824.71
1.30% $500 4847.57
1.26% $500 4845.22
1.25% $1,000 4833.08
1.25% $1,000 4831.00
1.25% $2,500 4837.63
1.25% $500 4807.42
1.25% $500 4837.17
1.25% $1,000 4810.81
1.25% $2,500 4834.17
1.25% $500 4844.12
1.25% $500 4841.77
1.25% $1,000 4862.57
1.25% $500 4794.77
1.21% $500 4828.87
1.20% $2,500 4830.68
1.20% $500 4832.99
1.17% $1,500 4836.14
1.15% $2,500 4831.60
1.15% $500 4835.25
1.15% $500 4837.01
1.10% $500 4822.21
1.06% $1,000 4839.61
1.05% $1,000 4835.79
1.01% $500 4855.96
1.00% $5,000 4828.45
1.00% $1,000 4837.00
1.00% $1,000 4834.28
1.00% $500 4841.85
1.00% $500 4837.65
1.00% $1,000 4832.79
1.00% $1 4835.96
0.95% $1,000 4837.00
0.85% $1 4830.14
0.85% $500 4837.92
0.75% $500 4794.92
0.75% $500 4841.13
0.75% $500 4848.15
0.75% $500 4824.81
0.75% $500 4822.59
0.75% $2,500 4837.22
0.75% $1,000 4836.01
0.75% $1,000 4797.12
0.70% $1,000 4812.10
0.65% $500 4836.27
0.60% $1,000 4842.63
0.60% $25,000 4844.53
0.50% $10,000 4847.06
0.50% $1,000 4839.76
0.45% $1,000 4844.53
0.35% $10,000 4831.32
0.30% $10,000 4819.62
0.30% $10,000 4834.93
0.25% $10,000 4830.97
0.25% $500 4846.98
0.20% $10,000 4834.93
0.15% $500 4834.36
0.15% $10,000 4829.34
0.10% $10,000 4829.02
0.10% $10,000 4844.53
0.01% $10,000 4867.87
0.01% $500 4802.88
All rates listed are Annual Percentage Yield (APY). The Min listed is the minimum deposit account balance required to obtain the rate listed.

BestCashCow strives to maintain the most accurate rates. If you believe a rate is not accurate, please let us know.

PRODUCT INFORMATION

Five Year CDs - Branch Banks 2020

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 longest of the most commonly offered terms. The 5-year CD is therefore often the highest offer at your local bank. Therefore, 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 rising rate environments a five-year CD may not be a good investment.

Safety

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.

Inflation

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%.

Interest

Five-year CDs currently pay about 1.00% 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

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.

ADVANTAGES AND DISADVANTAGES OF FIVE YEAR CDs

Advantages of five year CDs

  • 5 year CDs provide the highest rate of the common CD terms.
  • The return is fixed for five years, which is an advantage in a flat or falling rate environment.

Disadvantages of five year CDs

  • The money is locked away for five years and cannot be withdrawn without a substantial penalty.
  • In a rising rate environment, inflation will reduce the value of the money in the CD over time.
  • Branch CDs require the saver to visit a branch and be subjected to cross-sell pitches and other marketing tactics.

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, please visit the FDIC website.

To understand all of the income generating options available to a saver, please view the Income Generating Investments Comparison Chart.

SAVINGS & CD CALCULATOR

Find out how much extra money you can earn by moving your bank money into an account that pays more.

Use or Change these Amounts And Rates