President’s Day Bank CD Rates: Highest 1 Year Rates at 1.05% APY
The highest 1 year bank CD rates on President's Day 2013 remain unchanged at 1.04 percent with an annual percentage yield (APY) of 1.05 percent. Average CD rates on 12 month certificates of deposit are also unchanged at 0.23 percent for the week ending February 11, 2013 (new national average rates will be released later).
Both the best CD rates and the national average CD rates have been stable in 2013 after several banks lowered their rates at the end of 2012. While we don't expect rates to increase in 2013, they won't move lower either. The one factor that would force CD rates at banks higher in 2013 is a lower unemployment rate.
The Federal Reserve sets monetary policy by increasing or lowering the Fed Funds Rate. The Fed has stated their intention to keep the fed funds rate near zero percent until the unemployment rate falls below 6.5 percent. Keeping the fed funds rate this low has forced bank CD rates and credit unions CD rates down to record lows.
Longer term CD interest rates are not much higher than shorter term rates. The highest CD rates on 2 year certificates of deposit this week are at 1.19 percent (APY 1.20 percent), only 15 basis points higher than 1 year rates. 3 year to 5 year rates are not much better than 1 or 2 year rates.
The highest 3 year rates are at 1.30 percent (APY 1.31 percent), highest 4 year rates are at 1.54 percent (APY 1.55 percent) and the highest 5 year rates are at 1.73 percent (APY 1.75 percent). Below are list of the top 5 rates for certificate of deposit terms of 1 year to 5 years.
1 Year Rates
2 Year Rates
3 Year Rates
4 Year Rates
5 Year Rates
RatesORama.com Average Mortgage Rates