Best CD Rates- Search for CD Rates
Find the best CD bank rates by reading our reports and searching our CD rate tables. You can compare average CD rates to the highest rates available.
CD rates continue to move higher in 2017 as November brings more new highs for 1 year CD rates. There are now three banks offering 1 year CD rates at 1.74 percent with an APY of 1.75 percent.
We expect the increase in rates to continue next month and into 2018. The Fed is widely expected to increase the rate during their meeting in December. In fact, the CME Group’s FedWatch Tool puts the probability of an increase at 91.5 percent, as of this writing.
The current fed funds rate is in a range of 1.00 percent to 1.25 percent. An increase in December will put the rate between 1.25 percent and 1.50 percent. The last time the rate was that high was nearly a decade ago. You can view the history of the fed funds rate going back to 1955 in this Rate Chart.
Current Top 1 Year CD Rates
The 1 year CD rates listed above are from online banks, or online banking divisions of traditional brick and mortar banks. You won’t be able to find 1 year CD rates that high from brick and mortar banks and certainly not at the biggest banks.
For example, Wells Fargo’s 1 year CD rates are currently at 0.05 percent, you can see for yourself on the bank’s website. Another large bank, Chase Bank, is offering 1 year CD rates even lower at 0.02 percent. Banks offering rates that low basically don’t want your money. These banks also bury their rates on their websites so you have to dedicate a good amount of time hunting to find the rates.
The Federal Reserve wrapped up their two day meeting yesterday and decided to keep the fed rates unchanged. The Fed was expected to stand pat on rates during the September meeting. Even though the Fed kept rates where they are, online CD rates continue to march higher.
Between this Fed meeting and the last meeting in July, we have witnessed several new highs for short term CD rates. 1 year CD rates already made two new highs in the month of September. On September 5th, we reported the top 1 year CD rate increased to 1.60 percent and now the top 1 year rate is at 1.65 percent.
We are still predicting 1 year CD rates will hit a high of 1.75 percent by the end of 2017 but only if the Fed increases the fed funds rate once more this year. You can see a list of the best 1 year CD rates listed below.
Top 1 Year CD Rates This Week
6 month CD interest rates are also moving higher during the same time period. The top rate is moving up from 1.25 percent a couple months ago to 1.36 percent today. By the end of 2017, we look for 6 month rates to move towards 1.50 percent. Listed below are the best 6 month CD rates.
Top 6 Month CD Rates This Week
Looking beyond 2017, CD interest rates will continue to increase in 2018 and 2019 as long as the Fed increases interest rates. The rates listed above are all from online banks. If you compare these rates with traditional brick and mortar bank rates, you’ll see why we always recommended online banks for the best CD interest rates.
Keeping with the uptrend in 2017, CD rates continue to move higher in September. In August, the top 1 year CD rate was at 1.55 percent, this month the top 1 year CD rate is at 1.60 percent. Popular Direct, EverBank, and Pacific National Bank are all offering 1 year CD rates at 1.59 percent with a yield of 1.60 percent.
At the beginning of the year, the top 1 year rate was only at 1.35 percent, 25 basis points lower than the current rate. Shorter term CD rates moved higher this year because the Federal Reserve has been increasing the fed funds rate, the rate banks use to lend each other money overnight. These rate increases have put upward pressure on short term interest rates and bond yields.
CD rates with terms shorter than 1 year are also moving higher. The top 3 month CD rate is week is from Luana Savings Bank at 1.05 percent. Last month, the top 3 month CD rate was at 1.00 percent. The top 6 month CD rate this month is at 1.26% from M.Y. Safra Bank, FSB. In August, the top 6 month rate was at 1.21 percent.
CD Yield Curve Flattening
As short term CD rates move higher, longer term rates have been stagnant, increasing a lot less than short term rates, which is flattening the yield curve. The top 2 year CD rate is at 1.71 percent, only 11 basis points higher than the top 1 year rate.
Looking at longer term certificates of deposit, rates are only marginally higher. The top 3 year rate is at 2.00 percent, the top 4 year rate is at 2.16 percent, and the top 5 year rate is at 2.40 percent. The CD yield curve will continue to be flat in the coming years, even if short term rates are pushed higher.
The Federal Reserve increased the fed funds rate last week and Internet banks will follow with higher CD rates to stay competitive for your deposits. Over the past year, Internet banks slowly increased CD rates while traditional brick and mortar banks have not.
The largest traditional banks are still offering a paltry 0.05 percent CD rate on 12 month CDs while the top 12 month CD rates from online banks are at 1.40 percent. The CD rate difference on long term CD accounts is more striking.
The largest regular banks are currently offering 60 month CD rates around 0.35 percent while online banks’ 5 year CD rates are around 2.35 percent. Obviously, without the overhead that brick and mortar banks have, online banks are typically able to offer better rates.
The Federal Reserve increased their key benchmark lending rate for the third time in six months last week. The rate was increased 25 basis points to a range of 1.00 percent to 1.25 percent. This increase will put upward pressure on online banks to increase CD rates.
In the coming weeks, we expect the leading banks in our CD rate database to increase 1 year CD rates towards 1.50 percent or perhaps even higher. 5 year CD rates will head towards 2.50 percent. We haven’t seen rates this high for either CD term in many years.
We expect the uptrend in the fed funds rate and CD rates to continue in 2017. The Fed has telegraphed one more rate increase in 2017. There might be more than 1 additional rate increase because there are 4 more scheduled Fed meetings this year.
CD rates continue to move higher this week. We look for the trend of higher CD rates to continue in 2017 as long as there isn’t a recession. The Fed is expected to increase the federal funds rate at least two more times this year, which will put more upward pressure on CD rates.
This week, the best 1 year CD rate in the database is now at 1.49 percent with an APY of 1.50 percent. A couple of weeks ago, the top 1 year CD rate was 5 basis points less.
The current national average 1 year CD rate also moved higher this week over last. The current national average 1 year CD rate is at 1.26 percent, up from last week’s average of 1.30 percent.
Listed below is top ten 1 year CD rates currently available.
Top Ten 1 Year CD Rates
You can view a list of CD rates for all CD terms at MonitorBankRates.com.
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