Fed Stands Pat on Rates as Online CD Rates March Higher

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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.

Weekly CD Rates September 21, 2017Between 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

  1. CDBank.com 1.65%

  2. EverBank 1.62%

  3. My e-BAnC by BAC Florida Bank 1.62%

  4. Pacific National Bank 1.60%

  5. Popular Direct 1.60%

  6. M.Y. Safra Bank, FSB 1.58%

  7. First Internet Bank of Indiana 1.57%

  8. VirtualBank 1.56%

  9. Goldman Sachs Bank USA 1.50%

  10. Sallie Mae 1.50%

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

  1. VirtualBank 1.36%

  2. First Internet Bank of Indiana 1.32%

  3. M.Y. Safra Bank, FSB 1.26%

  4. Live Oak Bank 1.25%

  5. Pacific National Bank 1.25%

  6. Nationwide Bank 1.20%

  7. Luana Savings Bank 1.10%

  8. TAB Bank 1.06%

  9. Goldwater Bank 1.05%

  10. My e-BAnC by BAC Florida Bank 1.05%

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.
Author: Brian McKay
September 21st, 2017