CD rates have gone down again this week. Continuing the slow decent started last year when the Federal Open Market Committee started cutting the fed funds rate to stimulate the economy and rescue us from the worst recession since the 1930s.

The FOMC meet last week and decided to keep the fed funds rate in a targeted range of zero percent to one quarter percent. The fed is keeping interest rates low because they feel inflation isn’t a worry at this point and they don’t want to choke off the recovery that has started in this quarter. 

The recession is expected to end this year, when it does, expect the feds to start raising interest rates early next year to keep inflation in check. That being said, I still recommend keeping your money in shorter term certificate of deposits of one-year or less. Although shorter term CD rates are not the highest cd rates around when CD rates start going up you’ll benefit sooner from the uptick in rates instead of being locked into a lower rate.

Either stick with shorter term cd rates at banks or put your money in an online savings account that earns a higher yield than traditional savings accounts. Do just the opposite if you’re buying a home or want to refinance your existing mortgage since mortgage rates will head higher when the fed starts raising interest rates.

CD Rates

Currently, 3-month certificate of deposit rates are at 0.683 percent, down from last week’s average national CD rate of 0.698 percent.

The average CD rate on a 6-month certificate is at 0.972 percent this week, down from the prior week’s average rate of 0.985 percent.

12-month CD rates are averaging 1.256 percent this week, down from the previous week’s average CD rate of 1.269 percent.

Average rates on 24-month certificates are at 1.685 percent this week, down from last week’s average rate of 1.689 percent.

The average certificate of deposit rate on a 36-month CD is currently at 1.975 percent this week, unchanged from the prior week’s average rate.

48-month certificate of deposit rates are at 2.203 percent this week, down from last week’s average CD rate of 2.204 percent.

Good news!!! Average rates on a 60-month certificate of deposit increased this week to 2.449 percent this week, up from the previous week’s average CD rate of 2.448 percent. Couldn’t resist the sarcasm.

MonitorBankRates.com has CD rate tables you can search to find the best CD rates in your zip code. We have rates listed that are a lot higher than the national average CD rates we have listed above. Give our CD rate tables a try to find bank cd rates in your area.

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