This Week’s CD Rates Update: Best 1 Year CD Rate at 1.35 Percent
Certificate of deposit rates continue to slowly move higher this week. While several banks increased their CD rates, there are no new highs to report on this week. Like I have stated in the past, we will have to wait for the Federal Open Market Committee to vote to increase the federal funds rate before we see remarkably higher CD rates.
It won't be too long before we actually see higher rates. The FOMC usually votes to increase or decrease the federal funds rate during one of their regularly scheduled meetings. The next FOMC meeting scheduled for June 16 and June 17.
There is a chance we will see the fed funds rate increased during the June meeting. After the June meeting, there is another meeting in July and one in September. There is almost a 100 percent certainly that the rate will be increased between June and September.
Since CD rates are moving higher over the next 4 months you should stay invested in shorter term certificates of deposit. The best short term CD rate we have right now is on our 2 month rate list. MyCBB Bank 2 month CD rate is currently at 0.80 percent with an APY of 0.80 percent.
Listed below are the highest CD rates for both short term and long term certificates of deposit. Also listed below are the FDIC's national average rates for May 11, 2015. The FDIC releases a weekly report on national average deposit rates.