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This WeekThis Week: Fed Drops "Patient" on Interest Rate Guidance - Current CD Rates
 

This Week: Fed Drops “Patient” on Interest Rate Guidance – Current CD Rates

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The Federal Open Market Committee meet this week and dropped word "patient" on their interest rate guidance. Dropping the word doesn't mean they plan on increasing the federal funds rate in the upcoming April meeting. In fact, the consensus that the FOMC will increase the rate in June, is now looking more like September.

The majority of Fed participants still forecast a fed funds rate hike sometime in 2015. 15 of the 17 Fed participants believe a rate hike will happen this year. Not only does the timing of a rate hike varies, the range of where the rate will be also varies.

The current rate is at near zero percent. The forecast for the rate on the low end is 0.125 percent and on the high end the forecast is 1.625 percent. The largest number of participants, 7 total, believe the rate will be at 0.625 percent by the end of the year.

CD rates and other bank rates moving higher from current levels is dependent on the Fed increases the federal funds rate. Right now the best 1 year CD rates available are around 1.20 percent. If the fed funds rate is hiked to 0.65 percent, the highest 1 year CD rates will move towards 1.75 percent. A fed funds rate at 1.625 percent would send the highest 1 year rates towards 3.00 percent.

Listed below are the best CD rates for certificate of deposit terms ranging between 3 months and 5 years. Also listed below are CD rate forecasts based on fed funds rate forecasts.

Best Certificate of Deposit Rates March 19, 2015

3 Month Rates

  • California First National Bank 0.60% APY

  • First Internet Bank of Indiana 0.45% APY

  • AloStar Bank of Commerce 0.40% APY

  • Goldwater Bank 0.40% APY

  • Virtual Bank 0.40% APY


6 Month Rates

  • Zions Direct 1.00% APY

  • California First National Bank 0.85% APY

  • Chartway Federal Credit Union 0.85% APY

  • My e-BAnC by BAC Florida Bank 0.75% APY

  • giantbank.com 0.75% APY


1 Year Rates

  • Chartway Federal Credit Union Rate 1.30% APY 1.31%

  • Connexus Credit Union Rate 1.30% APY 1.30%

  • CIT Bank Rate 1.19% APY 1.20%

  • Synchrony Bank Rate 1.19% APY 1.20%

  • My e-BAnC by BAC Florida Bank 1.17% APY 1.18%


2 Year Rates

  • CIT Bank Rate 1.34% APY 1.35%

  • Synchrony Bank Rate 1.34% APY 1.35%

  • My e-BAnC by BAC Florida Bank Rate 1.30% APY 1.31%

  • California First National Bank 1.29% APY 1.30%

  • GE Capital Bank 1.29% APY 1.30%

  • Home Savings Bank 1.29% APY 1.30%


3 Year Rates

  • Synchrony Bank Rate 1.49% APY 1.50%

  • EverBank Rate 1.49% APY 1.50%

  • First Internet Bank of Indiana Rate 1.45% APY 1.46%

  • Barclays Bank Rate 1.44% APY 1.45%

  • Discover Bank 1.44% APY 1.45%

  • GE Capital Bank 1.44% APY 1.45%


5 Year Rates

  • Synchrony Bank Rate 2.23% APY 2.25%

  • Barclays Rate 2.23% APY 2.25%

  • GE Capital Bank Rate 2.23% APY 2.25%

  • EverBank Rate 2.23% APY 2.25%

  • Home Savings Bank Rate 2.13% APY 2.15%


CD Rate Forecasts

Fed Funds Rate at 0.625%

  • Top 6 Month CD Rates 1.25% to 1.50% APY

  • Top 1 Year CD Rate 1.50% to 1.75% APY

  • Top 2 Year CD Rates 1.65% to 1.90%

  • Top 3 Year CD Rates 1.85% to 2.15%

  • Top 5 Year CD Rates 2.625% to 2.875%


Fed Funds Rate at 1.625%

  • Top 6 Month CD Rates 2.25% to 2.50% APY

  • Top 1 Year CD Rate 2.50% to 2.75% APY

  • Top 2 Year CD Rates 2.65% to 2.90%

  • Top 3 Year CD Rates 2.85% to 3.15%

  • Top 5 Year CD Rates 3.625% to 3.875%


 
Author: Brian McKay
March 19th, 2015