Highest 1 Year Certificate of Deposit Rate Increased to 1.35 Percent
Certificate of deposit rates continue to inch higher this past week. We now have a new highest 1 year CD rate at 1.34 percent with an APY of 1.35 percent. Colorado Federal Savings Bank increased their rate the past week and now is the leader on our 1 year CD rates list.
Prior to Colorado FSB's rate increase, the best rate on our list was a tie from two credit unions. Chartway Federal Credit Union and Pentagon Federal Credit Union had the best rate at 1.30 percent with an APY of 1.35 percent. We also now have 10 banks and credit unions offering 1 year CD rates at 1.15 percent or higher.
CD rates will increase even more when the Federal Open Market Committee votes to increase the federal funds rate. Rate increases will come in 0.25 percent increments, which will send the best CD rates up by 0.25 percent increments. If the FOMC votes to increase the rate 25 basis points in June, we expect the best 1 year CD rates to increase towards 1.75 percent.
You have to go back six years to find 1 year CD rates near 1.75 percent. Once the FOMC starts increasing the fed funds rate they won't stop until the rate is around 1.50 percent to 2.00 percent. The subsequent increases will also be 0.25 percent.
By the end of 2015 1 year CD rates will be between 2.00 percent and 2.50 percent, possibly as high as 3.00 percent. The last time 1 year rates were around 3.00 percent was during the financial crisis of 2007 and 2008. Listed below are the top 1 year rates at or above 1.00 percent for May 11, 2015.
Top 1 Year CD Rates
You can always find lists of the most current certificate of deposit rates at RatesORama.com
RatesORama.com Average Mortgage Rates