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Certificate of Deposit Rates Move Higher This Week: Best 2 Year Rate at 1.50 Percent
 

Certificate of Deposit Rates Move Higher This Week: Best 2 Year Rate at 1.50 Percent

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Interest rates on certificates of deposit continue to move higher this week as the top 2 year CD rates are now at 1.50 percent. Financial institutions are increasing rates despite the fact that the federal funds rate remains in a targeted range of zero to one quarter percent.

The FOMC just wrapped up their two day October meeting yesterday and announced an end to quantitative easing but they plan to keep the fed funds rate near zero percent. Eventually, the FOMC will increase the fed funds rate which will send deposit rates even higher. The stage has been set for higher interest rates sometime 2015.

The rate curve has flatted even more this week as banks and credit unions increase shorter term CD rates but haven't increased longer term CD rates. The rate difference between the highest 1 year rate (1.20%) and the highest 5 year rate (2.52%) is at 1.30 percent and the difference between the highest 2 year rate (1.50%) and 5 year rate (2.52%) is at 1.02 percent.

Listed below are the top CD rates for certificate of deposit terms of 6 months to 5 years.

6 Month CD Rates

  • Doral Direct 0.87%

  • Chartway Federal Credit Union 0.85%

  • EH National Bank 0.80%


1 Year CD Rates

  • Pentagon Federal Credit Union 1.20% APY 1.21%

  • CIT Bank 1.11% APY 1.12%

  • Synchrony Bank Optimizer Plus 1.09% APY 1.10%

  • BankDirect 1.09% APY 1.10%

  • GE Capital Bank 1.09% APY 1.10%

  • My e-BAnC by BAC Florida Bank 1.09% APY 1.10%

  • ableBanking, a division of Northeast Bank 1.09% APY 1.10%

  • Colorado Federal Savings Bank 1.09% APY 1.10%


2 Year CD Rates

  • Chartway Federal Credit Union 1.50% APY 1.50%

  • Nationwide Bank 1.32% APY 1.33%

  • Pentagon Federal Credit Union 1.30% APY 1.31%

  • CIT Bank 1.29% APY 1.30%

  • Home Savings Bank 1.26% APY 1.27%

  • ableBanking, a division of Northeast Bank 1.26% APY 1.27%

  • HeritageWest Credit Union 1.25% APY 1.26%


3 Year CD Rates

  • Chartway Federal Credit Union 1.50% APY 1.51%

  • Nationwide Bank 1.49% APY 1.50%

  • CIT Bank 1.44% APY 1.45%

  • Sallie Mae 1.44% APY 1.45%

  • Bank Direct 1.44% APY 1.45%

  • Barclays Bank 1.44% APY 1.45%

  • State Farm Bank 1.44% APY 1.45%


5 Year CD Rates

  • Chartway Federal Credit Union 2.50% APY 2.52%

  • Nationwide Bank 2.29% APY 2.32%

  • Synchrony Bank Optimizer Plus 2.27% APY 2.30%

  • GE Capital Bank 2.23% APY 2.25%

  • Barclays Bank 2.23% APY 2.25%


Author: Brian McKay
October 31st, 2014