CD Rates | Search for CD Rates Today
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:
1 Year CD: BankDirect – 1.60% APY, Minimum Deposit $10,000
BankDirect is offering a 1 year CD rate at 1.59 percent with a yield of 1.60 percent. With a minimum deposit of $10,000. This is the best yielding 1 year CD account available right now. BankDirect is a division of Texas Capital Bank which was ranked one of Forbes’ Best Banks in 2016.
3 to 60 Month CD – First IB – Minimum Deposit of $1,000
A 3 month CD yield at 1.21% which 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:
1 Year CD at Popular Direct 1.55% – 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. All balances for Popular Direct and BPNA deposits would be combined for purposes of determining FDIC coverage eligibility. 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.
1 Year CD from Connexus Credit Union at 1.50% APY – Best Yielding CD from a Credit Union Right Now
The 1 year CD rate at Connexus Credit Union is currently at 1.49 percent with an APY of 1.50 percent. The minimum opening deposit is $5,000. Deposits are insured by the government but not with the FDIC. Deposits at credit unions are insured by the National Credit Union Administration for up to $250,000.
Sallie Mae 1 year CD at 1.50% APY – Minimum Deposit is $2,500
The banking division of the student loan company Sallie Mae is offering 1 year CD at 1.49 percent with a yield of 1.50 percent. The minimum deposit at this bank is $2,500 and all deposits are FDIC insured. Sallie Mae partially funds loans to students by collecting deposits from their online bank.
18 Month CD – 1.70% APY Popular Direct
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. Interest that is calculated daily give the CD account a higher overall APY.
2 Year CD – 1.81% APY – EverBank and First IB
I have to admit, it’s nice to see 2 year CD rates nearing 2.00 percent. Just a few years ago, the best 5 year CD rates were at 2.00 percent. Both EverBank and First IB top our 2 year rate list with a yield of 1.81 percent. Everbank’s minimum deposit is $5,000. First IB’s minimum opening deposit is only $1,000.
3 Year CD – 2.00% APY – Connexus Credit Union and EverBank Offer the Best Rate
Both Connexus Credit Union and EverBank make the rate list again toping the 3 year CD rate list. The bank and credit union are offering 3 year CD yields at 2.00 percent. The minimum opening deposit at both financial institutions is $5,000.
4 Year CD – 2.15% APY – Northern Bank Direct and EverBank
Northern Bank Direct and EverBank are both offering 4 year CD rates at 2.15% APY. Northern Bank Direct’s minimum opening deposit is only $500 while EverBank’s minimum is $5,000. Northern Bank Direct is another example of an online banking division of a traditional brick and mortar bank, in this case part of Northern Direct.
5 Year CD – 2.35% APY – Synchrony Bank and Popular Direct
Synchrony Bank and Popular Direct 5 year CD rates at 2.35% APY. The minimum opening deposit at Synchrony Bank is $25,000 and the minimum at Popular Direct is $5,000. Synchrony Bank used to be part of General Electric but was spun off by GE. Synchrony Bank is publicly traded and provides financial backing for many department store credit cards.
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?
Funding a CD account at opening is also easy, most Internet banks these days allow electronic transfers into the account. Setting up these transfers is also quick and painless. When you add an external account you usually have to verify the account, this is done by two small transfers into the account. 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.
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