A pattern is starting to emerge as more and more banks increase the interest rates they pay on certificates of deposit. This past week we have seen a couple of banks increase both their short term and long term CD rates. Virtual Bank and GE Capital Retail Bank both increased their rates.
GE Capital Retail Bank now has the top 1 year CD rate on our rate table at 1.09 percent with an annual percentage yield of 1.10 percent. EverBank is now tied with AloStar Bank of Commerce Rate for the best 3 month CD rate at 0.45 percent and has the best 4 year CD rate at 1.77 percent with an APY of 1.79 percent.
We will continue to see banks increase CD rates but any major increase in rates across the board won't come until the Federal Reserve increases the federal funds rate. The current fed funds rate is in a range of zero percent to one quarter percent. The Fed is expected to increase this rate sometime next year.