Best CD Rates April 17, 2013: Highest 1 Year CD Rates at 1.05% APY
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:
RatesORama.com Average Mortgage Rates