1 Year CD Rates Close in on 1.50 Percent
Banks and credit unions are starting to increase short term CD rates. Could it be in anticipation of the Federal Open Market Committee increasing the fed funds rate in December? Probably. Regardless, higher CD rates are welcome news and we do hope the trend continues into 2107.
The best 1 year CD rate on our rate list had been around 1.30 percent for the past several months. This past week Pentagon Federal Credit Union increased their 1 year CD rate to 1.35 percent with a yield of 1.36 percent.
I recall a couple years ago the highest 1 year CD rate was at 1.05 percent. Now 1 year CD rates are closing in on 1.5o percent, a rate we haven't seen in many years.
The Fed is scheduled to meet on December 13 and 14th and is widely expected to increase the fed funds rate by 25 basis points. In fact, the CME Group's FedWatch Tool has the probability of a 25 basis point hike at 92.7 percent.
Whether or not any banks or credit unions increase their rates remains to be seen but we expect the uptrend in CD rates to continue. Listed below are the top ten 1 year CD rates on our rate list.
You can search our rate lists for the highest CD rates for many different certificates of deposit terms at RatesORama.com.
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