CD Rates | Search for CD Rates Today
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.
Since 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
CD rates are moving higher these days and you can get a better yielding certificate of deposit from an online bank. Internet banks offer much better CD rates than traditional brick and mortar banks. This is especially true these days because online banks are increasing CD rates while big traditional banks keep CD rates at low pathetic levels. For example, a 1 year CD rate at BankDirect is now at 1.60 percent. Chase Bank 12 month CD rates are currently at 0.02 percent. By the way, I had to dig through Chase’s website to find the current 12 month CD rate. Chase’s rate is so low they are probably embarrassed which is probably why the rate is buried.
This list of CD rates below is updated daily. Interest rates will move higher in 2017 and in 2018. Many banks in this report will continue to increase their rates in the months ahead to stay competitive with the best rates available. Listed below are CD accounts with the current best CD rates:
CD Rates – Updated December 2017
1 Year CD: Ally Bank – 2.00% APY
Minimum Deposit $0
Ally Bank is offering a 1 year CD rate at 1.98 percent with a yield of 2.00 percent. There is no minimum deposit for this CD Account. Ally Bank has the best yielding 1 year CD account available right now. Learn Moore.
First Internet Bank – 3 to 60 Month CD
Minimum Deposit of $1,000
A 3 month CD yield at 1.11% is better than many 12 month CD rates available these days. As the name would suggest, First Internet Bank of Indiana is based in Indiana. Founded in 1999, First IB is one of first banks to be exclusively online, there are no branch locations. First IB serves all 50 states. The rest of First IB’s rates are better than most rates available we decided to list all their rates: Learn Moore.
1 Year CD at Popular Direct 1.60%
Minimum Deposit $10,000
Many traditional brick and mortar banks have online banking divisions. Popular Direct is the online bank of Banco Popular North America, a New York state chartered bank. All deposits with BPNA (including deposits through Popular Direct deposit products) are insured by the FDIC up to the applicable maximum amount allowed by law for each deposit ownership category. This last point is important, since Popular Direct’s deposits are insured under the BPNA FDIC umbrella be sure to stay under the maximum amount so your deposits are fully insured. Learn Moore.
1 Year CD from Connexus Credit Union at 1.00% APY
Minimum Deposit $5,000
The 1 year CD rate at Connexus Credit Union is currently at 1.00 percent with an APY of 1.00 percent. Deposits at credit unions are insured by the National Credit Union Administration for up to $250,000.
Sallie Mae 1 year CD at 1.72% APY
Minimum Deposit is $2,500
The banking division of the student loan company Sallie Mae is offering 1 year CD at 1.71 percent with a yield of 1.72 percent. Sallie Mae partially funds loans to students by collecting deposits from their online bank. Learn Moore.
18 Month CD – 1.70% APY Popular Direct
Minimum Deposit $10,000
The Internet Bank Popular Direct also tops our 18 month certificate of deposit rate list. Interest compounds daily on this 18 month CD and all CDs at Popular Direct.
iGOBanking.com 2 Year CD – 2.10% APY
Minimum Deposit $1,000
Last month I mentioned it was nice to see 2 year CD rates at 2.00 percent, now we one bank offering 1 year CD rates at 2.00 percent. Just a few years ago, the best 5 year CD rates were at 2.00 percent. iGoBanking.com tops our 2 year rate list with a yield of 2.10 percent.
Popular Direct 3 Year CD – 2.15% APY
Minimum Deposit $10,000
Popular Direct has the best 3 year CD rate on our list. The bank is offering 3 year CD rates at 3.12 percent and the yields at 2.15 percent. The minimum depot for a 3 year CD account is also $10,000.
4 Year CD – 2.15% APY – M.Y. Safra Bank, FSB and Northern Bank Direct
Minimum Deposit $5,000 – M.Y. Safra Bank
Minimum Deposit $500 – Northern Bank Direct
M.Y. Safra Bank, FSB and Northern Bank Direct are both offering 4 year CD rates at 2.15% APY. M.Y. Safra Bank’s minimum opening deposit is $5,000 while Northern Bank Direct minimum is $500.
Capital One 5 Year CD – 2.45% APY
Minimum Deposit $0
Capital One has the best 5 year CD rate right now at 2.42 percent with an APY of 2.45 percent. There is no minimum deposit to open a CD account at Capital One. Learn Moore.
Opening a CD Account Online
Online banking has come a long way the past 20 years. Opening a certificate of deposit online is very quick, easy and secure. These days it is much more of a hassle to go to a traditional bank to open a CD account. Also why would you when you get better rates with online banks?
In addition, funding a CD account at opening is also easy because most Internet banks these days allow electronic transfers into the account. Setting up these transfers is therefore quick and painless. Online banks also give you a certain amount of time to fund the CD account after you opening it.
CD rates have slowly inched higher for the past year and we recently reach a point for 1 year CD rates, which we haven’t seen for about a half dozen years. We can thank the Federal Reserve for higher CD rates and we can also thank the Fed for 1.50 percent 1 year CD rates.
That’s right, the best 1 year CD rate available on our rate list has hit the 1.50 percent milestone, a level we haven’t seen since 2011. The outlook for CD rates in 2017 and beyond is also promising because the Fed is expected to continue increasing the Fed funds rate.
Last month, the Fed increased the federal funds rate 0.25 percent to a targeted range of 0.75 percent to 1.00 percent. This is on top of the 0.25 percent increase we saw in December 2016. The Fed also mentioned the likelihood of at least two more rate increases in 2017.
Two more fed funds rate increases in 2017 would put the fed funds rate at 1.50 percent. This would send the best 1 year CD rates towards 2.00 percent. The last time we saw 1 year CD rates at or above 2.00 percent was just after the financial crisis nearly 10 years ago.
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.
Top Ten 1 Year CD Rates
You can search our rate lists for the highest CD rates for many different certificates of deposit terms at RatesORama.com.
Luana Savings Bank recently increased CD rates on their short term and 5 year certificates of deposit. Listed below are the recent CD rate increases from Luana Savings Bank.
You can compare these new CD rates from Luana Savings Bank with other bank CD rates by searching our rate lists for the Best CD Rates.
East Boston Savings Bank Direct, the online banking division of East Boston Savings Bank (EBSB), is offering a couple of very competitive online CD rates. As with any bank these days, online CD rates are usually higher than the traditional brick and mortar CD rates.
If you don’t live in the Boston area, it’s likely you haven’t heard about EBSB though the bank dates back to 1848. EBSB operates 31 bank branches in the greater Boston area. Deposits at both EBSB and EBSB Direct are insured by the FDIC for up to $250,000 per account.
The bank is also part of Deposit Insurance Fund of Massachusetts (DIF). The DIF is an industry sponsored deposit insurance fund that insures all deposits above (FDIC) limits at Massachusetts-chartered savings banks. To read more about the DIF, see their website Deposit Insurance Fund of Massachusetts.
EBSB Direct is currently offering a 16 month CD rate at 1.40 percent with a yield of 1.41 percent. The bank is also offering a 25 month CD rate a 1.40 percent with a yield of 1.41 percent but with this CD account you get to “bump the rate up.” These type of CD accounts allow the depositor increase the CD rate if CD rates increase during the term.
You can see how these EBSB Direct CD rates compare with EBSB CD rates.
Capital One 360 Bank, the online banking division of the credit card company Capital One, has lowered their short-term CD rates. Capital One 360 Bank CD rates on 6 month and 9 month certificates of deposit were lowered the most at 0.50 percent.
Regular and jumbo 6 month CD rates at Capital One 360 Bank were at 0.90 percent, the third best 6 month rate on our list. The new 6 CD rate of 0.40 percent drops Capital One 360 Bank down on our rate list to 18th place.
9 month regular and jumbo CD rates were also dropped from 0.90 percent to 0.40 percent. Capital One 360 Bank had the second top 9 month rate on our list and now places 7th on the list.
1 year regular and jumbo CD rates were not lowered as much – rates were only lowered 15 basis points. 1 year regular and jumbo CD rates were lowered from 0.90 percent to 0.75 percent. Capital One 360 Bank’s current CD rates are listed below.
Current CD Rates at Capital One 360 Bank
You can see how Capital One Bank’s CD rates compare with other bank CD rates by searching our rate lists at CDRates.RatesORama.com.
Popular Direct CD rates on one, two, and three year certificates of deposit were recently increased. Popular Direct had been offering very competitive CD rates and with these increases, are now the best CD rates on our rate list for all three CD terms.
Popular Direct’s deposit products are offered through Banco Popular North America (BPNA). Deposit accounts are FDIC insured under Banco Popular North America (FDIC # 34967). In addition to being a member FDIC institution, BPNA is also a New York state chartered bank.
The recent CD rate increases include 1 year CD rates which were increased 4 basis points to 1.29 percent with a yield of 1.30 percent. 2 year CD rates were increased 5 basis points to 1.54 percent with a yield of 1.55 percent. 3 year rates were also increased 5 basis points to 1.59 percent with a yield of 1.60 percent.
Current CD Rates from Popular Direct
You can compare Popular Direct CD rates with other bank CD rates by using our rate lists at RatesORama.com.
Eight different banks changed some or all of their CD rates the past week. Most of the CD rate changes were lower, in fact only one bank, TriState Capital Bank, actually increased their rates. CD rate changes were made to 43 different CD products, including regular, jumbo, IRA, and jumbo IRA certificates of deposit.
Live Oak Bank CD rates were lowered overnight but their CD rates are still very competitive even with the new lower rates. In fact, Live Oak Bank (NASDAQ:LOB) had the sole spot for the best 1 year CD rate and is now tied for the best 1 year rate with a few other banks.
Live Oak Bank’s 1 year CD rates were lowered from 1.29 percent with a yield of 1.30 percent to 1.24 percent with a yield of 1.25 percent. Live Oak’s 1 year CD rate is now tied with Synchrony Bank, iGObanking.com, Colorado Federal Savings Bank, and Barclays Bank.
2 year CD rates at Live Oak Bank are now at 1.44 percent with a yield of 1.45 percent. The previous 2 year CD rate was 1.49 percent with a yield of 1.50 percent. The 2 year CD rate at Live Oak is now the third best rate on our 2 year rate list.
Live Oak bank, headquartered in Wilmington, North Carolina, began in 2008.
Live Oak Bank CD Rate Changes
Complete List of Current Live Oak Bank CD Rates
You can see how Live Oak Bank CD rates compare with other bank CD rates and credit union CD rates by searching our rate lists at RatesORama.com.
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