CD Rate Reports
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.
The Federal Open Market Committee meets this week to decide the direction of interest rates. Unfortunately, it’s looking like the FOMC won’t increase the fed funds rate. This is bad news for depositors as both short term and long term deposit rates will remain near current levels or only move slightly higher.
After this week’s meeting, the Fed has two more scheduled meetings in 2016, one in November and one in December. It’s unlikely the Fed will increase the rate just before the election so that leaves one more chance of a rate hike in 2016. Right now, the CME Group’s FedWatch Tool has a 45 percent chance the Fed funds rate will be higher than the current level after the December meeting.
The good news is we are seeing banks in our database increase their CD rates to compete with the top national rates available. The bad news is we are not seeing any sharply higher rates and won’t until the Fed gets moving on increasing the fed funds rate.
Right now the top national 1 year CD rate in our database is from TAB Bank at 1.30 percent with a yield of 1.31 percent. TAB Bank’s 1 year CD rate is only marginally higher than a dozen other banks’ 1 year CD rates which range from 1.20 percent to 1.30 percent.
Depositors have suffered for a very long time with low CD rates. It’s been almost 8 years, since the financial crisis, that rates have been low. We have also had a few years of expecting rates to move higher but invariably, one piece of the economic puzzle keeps rates from increasing.
Looking beyond 2016 to future Fed predictions for the fed funds rate, things don’t look much better. The median projections for the fed funds rate at the end of 2016 is 0.90 percent and this projection is already too high. The median for 2017 is 1.6 percent and at 2.4 percent for 2018.
2017 and 2018 projections are already starting to look like a stretch because the projected inflation rate is expected to be 2.0 percent or lower for the long run. The Fed’s target range for the inflation rate is below 2 percent. If inflation stays below 2 percent there is no reason to increase the fed funds rate.
TAB Bank CD rates were recently increased on the bank’s short term and intermediate term certificates of deposit. With these rate increases, TAB Bank’s 3 month, 6 month, 1 year, 2 year, and 3 year CD rates are now in the top 5 CD rates available for each one of those CD terms.
The largest percentage rate increase was on the bank’s 6 month CDs. The 6 month CD rate was increased 50 percent from 0.60 percent to 0.90 percent. At 0.90 percent, the 6 month rate puts the bank in second place on our 6 month rate list. The top 6 month CD rate is from Live Oak Bank, which is offering a rate and yield of 1.00 percent.
TAB Bank (TAB), formerly Transportation Alliance Bank, has been in business for almost 20 years. The bank was established as an Industrial Loan Corporation (ILC) in 1998. TAB is an affiliate of TAB Bank Holdings Inc., headquartered in Ogden, UT.
Deposits at TAB Bank are insured by the FDIC up to the maximum amount allow by law. The Bank FDIC certificate number is 34187.
TAB Bank Recent CD Rate Changes
See how these new CD rates at TAB Bank compare with other bank CD rates by searching our rate tables at MonitorBankRates.com.
Nationwide Bank has drastically reduced CD rates on intermediate and long term certificates of deposit. The CD rate changes are some of the largest changes we have seen in a while. Nationwide Bank CD rates were competitive on 2 to 5 year certificates of deposit but not with the recent rate reduction.
The largest rate reduction was on Nationwide Bank’s 5 year certificate of deposit, which was reduced by 33 basis points. The 5 year CD rate was lowered to 1.61 percent with a yield of 1.62 percent. The prior 5 year rate was 1.93 percent with a yield of 1.95 percent. The best 5 year CD rate in our database is currently much higher at 2.03 percent with a yield of 2.05 percent from Synchrony Bank.
5 year jumbo CD rates at Nationwide Bank were also lowered 33 basis points. The new 5 year jumbo CD rate is 1.66 percent with a yield of 1.67 percent. The previous 5 year jumbo rate was 1.98 percent with a yield of 2.00 percent. The highest 5 year jumbo CD rate in our database is also from Synchrony Bank at 2.03 percent with a yield of 2.05 percent from Synchrony Bank.
Listed below is a complete list of CD rate changes at Nationwide Bank.
Nationwide Bank CD Rate Changes
Several different banks have changed their CD rates this past week. The largest decrease in rates was on short term CD rates at Silvergate Bank. 6 month CD rates were reduced by 55 basis points and 1 year rates were reduced by 78 basis points. Read more about Silvergate Bank CD rate reductions.
The overall direction of CD rates remains a mixed bag. We won’t see across-the-board CD rate increases until the Federal Open Market Committee increases the federal funds rate. The next FOMC meeting is in a couple of days but there is only a 3.6 percent chance the Fed will increase the rate according to the CME Group’s Fed Watch Tool.
This past week, a total of seven banks changed rates. Four banks lowered rates while 3 banks increased rates. Two of the three banks that increased rates, EverBank and Luana Savings Bank, have a history of changing rates often. It is always important to stay apprised of the latest rate changes, which we have listed below.
This Week’s CD Rate Changes
Chartway Federal Credit Union, based in Virginia Beach, Virginia, recently lowered their CD rates. Chartway Federal Credit Union’s CD rates were lowered on both short and intermediate term certificates. The largest decrease was 25 basis points on Chartway’s regular and jumbo 2 year certificates.
Chartway FCU has been around for over 50 years. The credit union was created in 1959 when seven civilian workers at the Norfolk Naval Air Station each invested $5.00 and incorporated NorVA N.A.S. Federal Credit Union.
According to Chartway’s “About Us” page, the credit union was created to provide low-cost loans and to provide a convenient place for its members to save. As with any credit union, you have to join Chartway to open a certificate or to open any other accounts.
Anyone can join by making a $10 donation to Chartway’s philanthropic arm, We Promise Foundation. The regular eligibility rules of either go to school, living, working or worshiping near a branch location will allow you to join.
Chartway’s recent CD rates are listed below. You can see a list of all current CD rates at Chartway and see this credit union’s star rating at Chartway Federal Credit Union CD rates.
Chartway FCU CD Rate Changes
Even with the recent CD rate changes, Chartway’s rates are still competitive. You can see how these rates compare with other credit union and bank CD rates by searching our rate tables at MonitorBankRates.com.
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