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CD Rates are Low Until 2015, 3 Year CDs are the Best Choice
 

CD Rates are Low Until 2015, 3 Year CDs are the Best Choice

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CD rates are at historically low levels right now and you probably have heard the Fed's policy on keeping interest rates low until the end of 2014. The Fed's exact wording is "likely to warrant exceptionally low levels for the federal funds rate at least through late 2014". 

We know that CD rates, savings rates and mortgage rates today are low right now and probably will remain so until 2015 unless the economy starts expanding considerably more than is likely. That being said if you want to lock in one of the highest rates around and have a CD mature just as rates finally start moving higher in 2015, investing in 3 year CDs is probably the best choice you can make.

Besides making sure your CD is maturing just as rates move higher, current 4 year CD rates aren't much lower than 4 year or 5 year rates. You can also make the argument that 1 year and 2 year rates are not much lower than 3 year rates which is true but why not maximize your investment even if 3 year rates are only marginally higher.

Now that I have made the argument for investing in 3 year CDs here are some of the best CD rates available for 3 year CDs. Doral Bank's current 3 year CD rates are at 1.49% with an APY of 1.50%. CIT Bank is another bank offering of the highest 3 year rates around. Current 3 year rates at CIT Bank are at 1.41% with an APY of 1.42%.

Here is a list of some of the best rates available for 3 year certificates of deposit.

  • Doral Bank 1.49% APY 1.50%

  • CIT Bank 1.41% APY 1.42%

  • Barclays Bank 1.39% APY 1.40%

  • Discover Bank 1.34% APY 1.35%

  • USAA 1.30% APY 1.31%

  • Ally Bank 1.29% APY 1.30%


Contact us if you see 3 year rates better than the rates listed here.

Author: Monica Harris
May 21st, 2012