CD Rates at Banks Increased this Month

CD rates at banks continued the upward trajectory this month as banks increased rates again. For the past two years, financial institutions are increasing CD rates because the Federal Open Market Committee is increasing the fed funds rate. 

This current round of monetary tightening started back in December 2015 when the Fed increased the rate .25 percent. The Fed kept the rate at a record low range of zero percent to 0.25 percent for several years. The financial crisis and Great Recession almost a decade ago forced the Fed to lower the rate to near zero percent. 

The current fed funds rate is in a range of 1.25 percent to 1.5o percent. You can view a chart of the fed funds rate going back to 1955 at the Federal Reserve Bank of St. Louis.

CD Rates at Banks Increased This MonthSince December 2015, CD rates at banks also moved higher. Back then the best CD rates on 1 year certificates of deposit were around 1.05 percent. Since then, the best 1 year CD rates have doubled and are currently at 2.10 percent. 

The expected uptrend for CD rates and for deposit rates in general is higher for the rest of 2018 and into 2019. The Fed is expected to increase the fed funds rate at least twice this year and maybe more. The Fed usually increases the rate in 25 basis point increments.

If the Fed falls behind the inflation curve we could see more than two rate hikes. In addition, we could see hikes in 50 basis point increments. Regardless of how many times the rate is increased by the Fed, the rate is moving higher. 

This is good news for depositors who are finally getting relief from historically low interest rates. You can see a list of current CD rate changes from banks and credit unions listed below. 

CD Rates at Banks

Financial InstitutionCD ProductYield (New / Old)
Presidential Bank, FSB1 yr CD1 / 0.95
Presidential Bank, FSB2 yr CD1.16 / 1.1
Presidential Bank, FSB3 yr CD1.31 / 1.23
Presidential Bank, FSB5 yr CD1.61 / 1.53
Goldman Sachs Bank USA1 yr CD2.05 / 1.8
Goldman Sachs Bank USA2 yr CD2.15 / 1.9
Goldman Sachs Bank USA3 yr CD2.25 / 2
Goldman Sachs Bank USA5 yr CD2.6 / 2.5
Goldman Sachs Bank USA18 month CD2.1 / 1.85
Goldman Sachs Bank USA4 yr CD2.3 / 2.1
Sandia Area Federal Credit Union6 month CD0.7 / 0.65
Sandia Area Federal Credit Union1 yr CD1.05 / 0.8
Sandia Area Federal Credit Union2 yr CD1.45 / 1.35
Sandia Area Federal Credit Union3 yr CD1.8 / 1.6
Sandia Area Federal Credit Union4 yr CD2 / 1.85
Limelight Bank1 yr CD2.02 / 1.96
Luana Savings Bank9 month CD1.75 / 1.7
Luana Savings Bank9 month jumbo CD1.75 / 1.7
Nationwide Bank6 month CD1.5 / 1.2
Nationwide Bank2 yr CD2.1 / 1.9
Nationwide Bank6 month jumbo CD1.55 / 1.25
Nationwide Bank2 yr jumbo CD2.15 / 1.95
Northern Bank Direct1 yr CD1.5 / 1.06
Northern Bank Direct2 yr CD1.75 / 2.26
Northern Bank Direct3 yr CD2.55 / 1.35
Northern Bank Direct5 yr CD2.57 / 1.65
Northern Bank Direct4 yr CD2.56 / 2.51
VirtualBank5 yr CD2.65 / 2.58
VirtualBank5 yr jumbo CD2.65 / 2.58
Synchrony Bank1 yr CD1.95 / 1.85
Synchrony Bank1 yr jumbo CD1.95 / 1.85
M.Y. Safra Bank, FSB5 yr CD2.66 / 2.6
M.Y. Safra Bank, FSB5 yr jumbo CD2.66 / 2.6


Author: Brian McKay
February 23rd, 2018