Highest 1 Year CD Rates Increase, Top CD Rate at 1.21 Percent
After many years of banks and credit unions decreasing CD rates it's nice to finally see higher CD rates. For the past couple of months, that seems to be the trend as financial institutions finally started increasing rates. Beside rates moving higher, another trend is starting to emerge. At first, the increase in rates were small, 1 to 5 basis points, as institutions offering the highest rates "one upped each other" to remain at the top. The past couple of weeks, we have seen the top 1 year CD rate move up 10 basis points to 1.21 percent APY. The top 2 year CD rate moved 25 basis points higher, from 1.25 percent to 1.50 percent.
We will continue to see banks and credit unions increase intermediate term CD rates and long term CD rates. They hope to get ahead of the pending increase in rates by offering more attractive rates now, enticing depositors to lock in deposits at lower current rates. Don't be fooled by this practice. Stay invested in shorter term certificates of deposit for the next several years.
When it looks like interest rates are topping out, that will be the time to lock into a long term certificate of deposit. That probably won't happen until 2017 or even 2018, depending now how long the current economic expansion lasts.
Listed below are the highest short term CD rates available on the rate tables:
3 Month CD Rates
6 Month CD Rates
1 Year CD Rates
You can do your own search for the best rates by using our rate lists here: Best CD Rates
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