Best CD Rates| RatesORama.com has a List of the Best CD rates Available
Certificates of deposit (CDs) are one of the safest investments available. Make sure to only invest in CD accounts that are insured by the Federal Deposit Insurance Corporation (FDIC). When you invest in a CD your money is locked in a time deposit and you gain access to your funds when the CD matures. You can gain access sooner but you will pay an "early withdrawal penalty" which can be as high as all the interest earned depending on the CD term.
CD Rates Updated Wed Jun 19, 2013
Though average CD rates continue to drift lower, the best CD rates on our 12 month certificate of deposit rate list remain at 1.04 percent with an APY of 1.05 percent. The current national average 12 month CD rate is at 0.21 percent and last month the national average 12 month rate was at 0.22 percent.
The highest 6 month CD rate this week on our rate table remains at 0.88 percent from Doral Direct. This bank’s rate is only 16 basis points lower than the highest 12 month rate and is considerably higher than the national average rate. The current national average rate is at 0.13 percent, 75 basis points lower than Doral Direct’s rate.
EverBank has the best rate on our 3 month certificate of deposit rate list this month. EverBank’s current 3 month rate is at 0.46 percent. This rate is much higher than the current national average 3 month rate of 0.08 percent.
The best 2 year CD rate this month is from My e-BAnC, the online banking division of BAC Florida Bank. My e-BAnC is currently offering 24 month CD rates at 1.10 percent with an APY of 1.11 percent. My e-BAnC’s 2 year rate is more than 3 times the national average 24 month rate of 0.33 percent.
3 year CD rates are averaging 0.45 percent while the best 3 year rates on our list are at 1.34 percent with an APY of 1.35 percent. The bank offering the best CD rate on our 3 year certificate of deposit rate list is Barclays Bank.
The highest bank CD rates on our 4 year certificate of deposit rate list are also from Barclays Bank. The bank is offering 4 year rates at 1.54 percent with an APY of 1.55 percent. The current national average 4 year rate is much lower at 0.57 percent.
The best 5 year rate is from EverBank at 1.74 percent with an APY of 1.75 percent. Barclays Bank is also offering a 5 year APY at 1.75 percent but Barclay’s rate is at 1.73 percent. The difference in the rate is because of the way the banks compound interest on the account. Both banks have a rate and APY much higher than the national average rate of 0.74 percent.
You can search and compare many different CD rates at banks by using our interest rate lists here: CDRates.RatesORama.com.
There is even more hope that CD rates will move higher sometime in 2014. The Federal Reserve Chairman, Ben Bernanke, was guarded in his testimony on ending quantitative easing to the Joint Economic Committee of Congress. Ben said “if we see continued improvement and we have confidence that that is going to be sustained, then we could in — in the next few meetings — we could take a step down in our pace of purchases.”
The Federal Reserve has been buying $85 billion a month in mortgage backed securities and U.S. Treasuries to suppress long term interest rates. The Fed has been every effective at keeping rates low through their purchases and keeping the fed funds rate near zero percent. Their policies have driven bank CD rates down to record lows for both short term and long term rates.
If the economic landscape improves over the next few meetings, which by the way the next three Fed meetings take place over the next four months, the Fed could stop their purchases by the end of 2013. The last piece of the puzzle is the Fed increasing the fed funds rate. The Fed has stated that they plan to increase the rate when the unemployment rate falls below 6.5 percent.
The current unemployment rate is at 7.5 percent and has been falling on average 0.1 percent a month. If the rate continues to fall at this pace, we would see the unemployment rate at 6.8 percent in December 2013, just above 6.5 percent. The first Fed meeting in 2014 is set for January 28 and 29, the second meeting is set for March 18 and 19. By the March meeting the Fed might decide to increase the fed funds rate.
The increase in the rate will be rather quick because the current rate (at zero percent) is very accommodating. Just to get to a neutral level in the rate, the Fed will have to increase it by 100 to 150 basis points. That would force banks to increase deposit rates by almost as much on short term certificates of deposit.
Current 1 year CD rates at banks are only averaging 0.23 percent in the FDIC rate survey this week. The best CD rates on 1 year certificates of deposit are around 1.04 percent. If the scenario above plays out we could start seeing CD rates at banks move higher in the second quarter of 2014. By the end of 2014, 1 year rates could move as high as 2.00 percent, and savings rates and money market rates could follow suit.
A lot remains to come to pass for the Fed to stop their purchases and increase the fed funds rate. The markets already believe higher rates are on the way and they are driving long term Treasury yields higher. Since the beginning of May, 30 year Treasury yields have risen from 2.83 percent to 3.18 percent, an increase of 12 percent in less than three weeks.
Our database has the list of the best CD rates this week. Long term U.S. bond yields are moving sharply higher on strong economic data, in particular, the strong jobs report for the month of April. The top CD rates haven’t changed much this week but two to 30 year bonds are up anywhere between 6 to 33 basis points all since the beginning of the month.
Below is a rundown of the top rates this week:
Top Bank CD Rates
1 Month Rates
2 Month Rates
3 Month Rates
6 Month Rates
9 Month Rates
12 Month Rates
18 Month Rates
24 Month Rates
30 Month Rates
36 Month Rates
48 Month Rates
60 Month Rates
Search for both national CD rates at banks and regional CD rates by using our rate tables here: cdrates.ratesorama.com
The best CD rates for May 6, 2013 remain unchanged over last month’s top CD rates as long term U.S. Treasury yields declined this past month. Treasury yields were lower the past month on several economic reports that came in less than analysts expected. The biggest surprises were a disappointing manufacturing report and a weak consumer sentiment report. Treasury yields increased early in May on a stronger than expected employment report.
The best 12 month certificate of deposit rate in our database are from GE Capital Retail Bank at 1.04 percent with an APY of 1.05 percent. GE Capital Retail Bank CD rates are many times the national average rate in this week’s FDIC rate survey. In the survey for the week ending May 6, 2013, the national average 12 month CD rate is at 0.21 percent, about one fifth of GE Bank’s rate.
Long term CD rates at banks are not much higher than short term rates and haven’t been for years now. The national average 5 year CD rate in the FDIC survey this week is at 0.75 percent, only 54 basis points higher than the national average 1 year rate. Average 5 year bank CD rates are also unchanged in the FDIC survey this week.
The best 5 year CD rates in our database are more than double the national average. Three banks in our database are offering 5 year CD rates at 1.59 percent with an APY of 1.60 percent. Nationwide Bank, First Internet Bank of Indiana and Bank of Internet USA are all offering that rate and yield. We also have about a dozen other banks that are offering 5 year rates well above the national average.
The national average 3 month CD rate this week is at 0.09 percent, unchanged from last week’s average rate. The highest 3 month CD rates in our rate tables are more than five times the national average. The bank offering the highest rate right now is EverBank at 0.46 percent. We also have AloStar Bank of Commerce offering 3 month rates at 0.45 percent, exactly 5 times the national average.
Current national average 6 month CD interest rates are at 0.13 percent this week, unchanged from last week’s average rate. The best rate on 6 month certificates of deposit right now is from Doral Direct. The online banking division of Doral Bank is offering 6 month CD rates at 0.88 percent with an APY of 0.88 percent. Doral Direct’s 6 month rate is only 16 basis points below the highest 12 month rate this week.
Here is a quick rundown of the top CD rates for April 23, 2013:
All the banks listed on our CD rates table have deposits insured by the FDIC up to the maximum amount allowed by law. CD bank rates change constantly, be sure to check our rate tables for the most current CD rates available: Current CD Rates
This week’s average and best CD rates pretty much remain unchanged since last week. There won’t be any big moves down since CD rates are so low right now, plus the Federal Reserve is keeping a lid on rates for the next couple of years. The Fed has forced interest rates on all interest bearing assets down to record lows since the financial crisis and “Great Recession” that started almost six years ago.
When the financial crisis hit the Fed acted quickly to mitigate the damage by quickly lowering the fed funds rate. By December 2008 the fed funds rate was lowered to the current level of near zero percent. The Fed has stated they plan to keep the Federal funds rate in a targeted range between zero percent and one quarter percent until the unemployment rate falls below 6.5 percent.
The Fed believes the unemployment rate will fall below that level sometime at the end of 2015. If the fed is right bank CD rates, savings rates, money market rates and bond yields will also stay low. The best CD rates right now on our 1 year certificates of deposit are just above 1.00 percent at 1.04 percent with an APY of 1.05 percent. The bank offering that CD rate and CD yield is GE Capital Retail Bank.
A 1 year CD rate just above 1.00 percent isn’t that great when you compare it to historical CD rates but when you compare it to average CD rates at banks things look a lot better. The current average 1 year bank CD rate in the FDIC rate survey for the week ending April 15, 2013, is at 0.21 percent. The FDIC average bank rate is one fifth the highest CD rate on our table this week.
Below is a list of the top CD rates for 12 month certificates of deposit for April 17, 2013:
As we head into the second quarter of 2014, average CD rates and the highest CD rates available remain unchanged. While deposit rates have remained stable the past month, the same can’t be said for long term bond yields. 10 year bond yields which were above 2.00 percent at 2.05 percent the second week of March have fallen to 1.78 percent today.
In the coming months we believe CD bank rates will remain pretty much where they are now. There will be slight declines or increases in weekly average rates but overall not much movement from where rates are now. The biggest impediment to higher CD rates and higher interest rates in general is the Federal Reserve. As long as the Fed keeps the fed funds rate near zero percent, all deposit rates will also remain low.
1 month CD rates at banks are averaging 0.06 percent in the FDIC National Rates and Rate Cap Survey for the week ending April 1, 2013. The best CD rates on our 1 month certificate of deposit rate list are from Lone Star Bank at 0.15 percent.
Average 3 month bank CD rates in the FDIC survey this week are averaging 0.09 percent. The best 3 month CD interest rates on our rate list are from EverBank at 0.46 percent, more than 5 times the national average.
6 month certificate of deposit rates are averaging 0.13 percent this week while the best 6 month rates in our rate database are at 0.88 percent from Doral Bank Direct. 12 month CD rates are averaging 0.22 percent this week and the highest 12 month rates in our database are at 1.04 percent with an APY of 1.05 percent. The lone bank offering that rate and yield is GE Capital Retail Bank.
Longer term CD rates these days don’t pay much more than shorter term CD rates. Average 2 year CD rates are at 0.35 percent in this week’s FDIC survey. The best 2 year rates in our database right now are from Home Savings Bank and GE Capital Retail Bank at 1.14 percent with an APY of 1.15 percent. As you can see, the best 2 year rates are only 10 basis points above the best 1 year rates right now.
3 year CD rates are averaging 0.48 percent and the best 3 year rates in our database are at 1.35 percent with an APY of 1.36 percent. The bank offering that rate and yield in our database is The National Republic Bank of Chicago. Moving onto 4 year rates, the average 4 year rate this week is at 0.59 percent and the best 4 year rate from Nationwide Bank is at 1.55 percent with an APY of 1.56 percent.
The national average 5 year CD rate this week is at 0.77 percent. The best 5 year rate in our database this week is more than double the national average rate. The best 5 year rate in our database is also from The National Republic Bank of Chicago at 1.85 percent with an APY of 1.87 percent. All of the banks listed in our rate database have deposits insured by the FDIC for up to the maximum amount allowed by law.
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