All CD Rates Move Higher as Bank CD Rates Increased

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Bank CD rates are higher this week as ten different banks increased CD rates on a wide range of CD products. The largest increase was from TAB Bank, which increased their 6 month CD rate by 25 basis to 2.12 percent. TAB now has the second highest 6 month CD rate currently available. The highest 6 month rate is held by My eBanc at 2.20 percent.


The second largest increase was from Home Savings Bank, who increased their 2 year CD rates by 15 basis points to 2.65 percent. Popular Direct currently has the top 2 year CD rate at 2.91 percent with a yield of 2.95 percent.


Bank CD Rates IncreasedAnother recent milestone is seeing 3 year CD rates hit 3.00 percent for the first time in nearly a decade. M.Y. Safra Bank, FSB, is the latest bank to increase their 3 year rates. M.Y. Safra Bank now has their 3 year rate at 2.97 percent with a yield of 3.00 percent.




Other highlights with the increases include TIAA Bank Direct increasing 9 month CD rates to 2.08 percent with a yield of 2.10 percent. VirtualBank has the best 9 month CD rate currently available at 2.15 percent with a yield of 2.17 percent.



Higher Bank CD Rates Coming


1 year CD rates didn't see any large increases or new highs this week though that will likely change. The highest 1 year CD rate is currently at 2.65 percent. The Federal Open Market Committee will likely force 1 year CD rates towards 3.00 percent by the end of 2018.


The fed funds rate will probably be increased another 25 basis points this week. Banks set deposit rates to the fed funds rate, which means deposit rates will move higher. Some online banks might immediately increase CD rates to continue to offer the highest rate available.

 
Author: Brian McKay
September 25th, 2018