5% CDs

Attention Fixed Income Investors! Today, Pentagon Federal Credit Union reintroduced their 5% APY CDs available in 3-year, 4-year, 5-year and 7-year terms. In addition, Washington Mutual (recently purchase by JP Morgan Chase), continues to offer 5% CDs for both 12-month and 13-month terms.

PedFed CDs are backed by the NCUA and the WaMu CDs are backed by the FDIC. 1-year U.S. Treasuries presently yield 1.66% and 5-year Treasuries yield 2.86%, so these rates are very attractive. It is possible that these rates may not be available for too long if the FOMC lowers rates in October due to weakening economic conditions in the fourth quarter.

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