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Best 12 Month CD Rates at 2.50 Percent, A Multi-Year High

Several banks and credit unions increased CD rates this week and as a result, the best 12 month CD rates are now at 2.50 percent, a multi-year high. The last time 1 year CD rates were in the 2.50 percent range, was during the financial crisis in 2008/2009.

When the financial crisis hit and caused the Great Recession, the Federal Reserve lowered the fed funds rate to nearly zero percent. This caused deposit rates to plummet to all-time lows the following four years. The best 12 month CD rates were actually under 1.00 percent at the low point in 2013.

National average rates were even worse because of big brick and mortar banks were offering extremely low rates. At the lowest point during early 2013, reported 12 month CD rates averaged 0.68 percent. The FDIC's weekly national average rates were even lower, averaging a low of 0.20 percent.

Thankfully, those extremely low rates are a thing of the past and the trend for rates is higher due to a higher fed funds rate. The Fed has increased the fed funds rate seven times for a total increase of 1.75 percent to 2.00 percent, which is where the current rate is.

The Fed is also widely expected to increase the rate two more times this year because of strong economic growth. Two more increases would put the rate around 2.50 percent. The last time the rate was that high was back in early 2008, more than a decade ago. You can see a history of fed funds rate changes the past fifteen years at Fed Funds Rate History.

If there are two more rate increases by the Fed this year, deposit rates will move higher from the current level. 1 year CD rates will probably hit 3.00 percent by the end of 2018.

Best 12 Month CD RatesBest 12 Month CD Rates This Week

  • ableBanking 2.50%

  • Connexus Credit Union 2.50%

  • iGObanking 2.35%

  • BankPurely 2.35%

  • Banesco USA 2.35%

  • TIAA Bank 2.35%

  • My eBanc 2.35%

  • VirtualBank 2.35%

  • M.Y. Safra Bank, FSB 2.34%

  • TAB Bank 2.33%

  • First Internet Bank of Indiana 2.32%

  • AloStar 2.32%

You can search for and compare CD rates by using our rate tables at
Author: Brian McKay
June 26th, 2018