FOMC Stays the Course on Interest Rates, Top CD Rates This Week

The Federal Open Market Committee's statement released yesterday showed the Fed is staying the course on interest rates for now. The Fed didn't change it's language on keeping the fed fund rate low for a "considerable time." While rates are not rising any sooner than the mid-2015 time frame, it looks like when rates do move higher the increases will be sharper, this is good news for CD rates and other deposit rates.

The FOMC also released updated economic forecasts on interest rates. Fed officials now believe the fed funds rate will be at 1.38 percent by the end of 2015, up from June's forecast of 1.13 percent. A fed funds rate in this range will send 1 year CD rates, savings rates and money market rates above 2.00 percent.

Currently the best CD rates on our 1 year certificate of deposit rates list are at 1.09 percent with an APY of 1.10 percent. The best savings rates on our lists are at 1.00 percent. The best money market account rates are at 1.01 percent APY. Listed below are the highest CD rates on certificate of deposit terms of 3 months to 5 years.

Highest CD Rates

  • 3 Month CD Rate 0.40% APY

  • 6 Month CD Rate 1.00% APY

  • 1 Year CD Rate 1.09% APY 1.10%

  • 2 Year CD Rate  1.26% APY 1.27%

  • 3 Year CD Rate 1.49% APY 1.50%

  • 5 Year CD Rate 2.27% APY 2.30%

Author: Brian McKay
September 19th, 2014