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Long Term CD Rates Inch Higher, Short Term CD Rates Remain the Same
 

Long Term CD Rates Inch Higher, Short Term CD Rates Remain the Same

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Longer term CD rates continue to move higher this month as banks are raising rates in hopes of enticing depositors into longer term certificates of deposit before rates move higher in 2014. Banks realize that they will have to increase both short term and long term CD rates next year when the Federal Open Market Committee (FOMC) increases their key benchmark interest rate, the federal funds rate.

This month we have 5 different banks offering 5 year CD rates just under 2.00 percent or higher. Last month we had 3 different banks offering 5 year rates that high and in late summer, there were no banks offering rates near 2.00 percent. Over the same duration, the highest 1 year CD rates remain just above 1.00 percent at 1.05 percent APY.

Best Long Term CD Rates This Month


Below is a list of the best CD rates on long term certificates of deposit. Though we listed the best rates here, we recommend sticking with certificates of deposit with terms of 6 months or less because CD rates at banks are moving higher in the summer of 2014.

Top 5 Year CD Rates

  • Pentagon Federal Credit Union Rate 2.00% APY 2.02%

  • Virtual Bank Rate 2.00% APY 2.02%

  • EverBank Rate 1.99% APY 2.01%

  • GE Capital Retail Bank Optimizer Plus Rate 1.98% APY 2.00%

  • Barclays Bank Rate 1.09% APY 2.00%

  • Intervest National Bank Rate 1.93% APY 1.95%

  • State Farm Bank Rate 1.88% APY 1.90%


Top 4 Year CD Rates



  • Pentagon Federal Credit Union Rate 2.00% APY 2.02%

  • Nationwide Bank Rate 1.66% APY 1.67%

  • Intervest National Bank Rate 1.64% APY 1.65%

  • Barclays Bank Rate 1.64% APY 1.65%

  • iGObanking.com Rate 1.64% APY 1.65%

  • EverBank Rate 1.50% APY 1.51%

  • Virtual Bank Rate 1.50% APY 1.51%


Top 3 Year CD Rates



  • Pentagon Federal Credit Union Rate 2.00% APY 2.02%

  • Intervest National Bank Rate 1.44% APY 1.45%

  • AloStar Bank of Commerce Rate 1.34% APY 1.35%

  • GE Capital Retail Bank Optimizer Plus Rate 1.29% APY 1.30%

  • Salem Five Rate 1.29% APY 1.30%

  • iGObanking.com Rate 1.29% APY 1.30%

  • Discover Bank 1.24% APY 1.25%


Top 2 Year CD Rates

  • Pentagon Federal Credit Union Rate 1.25% APY 1.26%

  • CIT Bank Rate 1.19% APY 1.20%

  • Nationwide Bank Rate 1.19% APY 1.20%

  • AloStar Bank of Commerce Rate 1.19% APY 1.20%

  • iGObanking.com Rate 1.19% APY 1.20%

  • GE Capital Retail Bank Optimizer Plus Rate 1.14% APY 1.15%


Top 1 Year CD Rates

  • GE Capital Retail Bank Optimizer Plus Rate 1.04% APY 1.05%

  • GE Capital Retail Bank Rate 1.04% APY 1.05%

  • Nationwide Bank Rate 1.00% APY 1.01%

  • Colorado Federal Savings Bank Rate 1.00% APY 1.00%

  • The Palladian PrivateBank Rate 1.00% APY 1.00%

  • AloStar Bank of Commerce Rate 0.99% APY 1.00%


Best Short Term CD Rates


As you can see from the CD interest rates above, the highest overall rate is just above 2.00 percent. By the end of 2014, we believe 1 year CD rates will move as high as 2.50 percent to 3.00 percent, so it doesn't make sense to lock into a long term account now. That being said, below is a list of the highest CD rates for CD terms of less than 1 year which is the only CD accounts you should be investing in right now.

Top 9 Month CD Rates

  • Doral Direct Rate 0.91% APY 0.91%

  • AloStar Bank of Commerce Rate 0.85% APY 0.85%

  • giantbank.com Rate 0.80% APY 0.80%

  • Discover Bank Rate 0.70% APY 0.70%

  • VirtualBank Rate 0.70% APY 0.70%

  • USAA Rate 0.66% APY 0.66%

  • Ally Bank Rate 0.64% APY 0.64%


Top 6 Month CD Rates

  • Zions Direct Rate 1.00% APY 1.00%

  • Doral Direct Rate 0.87% APY 0.87%

  • EH National Bank Rate 0.85% APY 0.85%

  • EH National Bank Rate 0.75% APY 0.75%

  • Colorado FSB Rate 0.70% APY 0.70%

  • giantbank.com Rate 0.70% APY 0.70%

  • Discover Bank Rate 0.65% APY 0.65%

  • My e-BAnC by BAC Florida Bank Rate 0.65% APY 0.65%

  • Virtual Bank Rate 0.65% APY 0.65%

  • Ally Bank Rate 0.61% APY 0.61%


Top 3 Month CD Rates

  • AloStar Bank of Commerce Rate 0.45%

  • Virtual Bank Rate 0.40%

  • Barclays Bank Rate 0.35%

  • Discover Bank Rate 0.35%

  • EverBank Rate 0.35%

  • First Internet Bank of Indiana Rate 0.35%

  • Ally Bank Rate 0.30% APY 0.30%

  • E-Loan.com Rate 0.30% APY 0.30%


 
Author: Brian McKay
November 19th, 2013