CD Rate Reports
Find the best CD rates currently available by searching our CD rate tables. You can compare CD rates from banks and credit unions to get the best CD rates today
Bank CD rates will increase in the coming weeks and will make new highs for 2018. The reason for higher CD rates in the coming weeks is because of a higher fed funds rate. The Federal Reserve is meeting today and tomorrow and is widely expected to increase the fed funds rate by 25 basis points.
In fact, it’s a foregone conclusion that a 0.25 percent rate hike is coming according to market probabilities. The CME Group’s FedWatch Tool puts the likelihood of an increase this week at 94.4 percent. One of the highest probabilities I recall ever seeing with the FedWatch Tool.
Bank CD Rates Forecast Higher
Although a 0.25 percent hike is coming for the fed funds rate, don’t expect banks to increase deposit rates by 0.25 percent, not initially anyway. Banks will be quick to increase loan rates by 25 basis points, in lock-step with the fed funds rate, but not on deposit rates. This is standard practice and is how banks traditionally made money. This is also how banks achieve higher profit margins in higher-rate economic environments.
What is likely to occur is the best deposit rates will move about 10 to 15 basis points higher. The best CD rates on 1 year certificates of deposit, currently at 2.15 percent, will increase to 2.25 percent to 2.30 percent. The top 6 month CD rates currently at 1.95 percent will increase to 2.05 percent to 2.10 percent. The highest 3 month CD rates will increase to 1.55 percent to 1.60 percent. These top CD rates are available online, most brick and mortar bank CD rates are well below these rates.
CD rates have been on an uptrend for about two years now and will continue moving higher for the rest of 2017. The FOMC is expected to increase the fed funds rate at least two more times this year and possibly more. Two more rate increases will send short term CD rates up at least another 25 to 30 basis points.
The key to more than two rate increases is higher inflation. The Fed has a target of a 2.00 percent inflation rate. If the Fed expects inflation to increase higher than their target rate, that will trigger the Fed to increase the rate more than two times.
The highest CD rates continue to move higher as online banks increase rates again this week. 10 different online banks and credit unions increased a slew of CD rates over the past seven days. Rates on both short term and long term certificates of deposits moved higher.
The biggest increases again this week were on shorter term certificates of deposit. This is because the Federal Reserve is driving short term rates higher. The Fed is scheduled to meet in the middle of next month and is widely expected to increase rates again.
Highest CD Rates
Another Fed increase in the fed funds rate will entice banks and credit unions to increase CD rates even more. Currently, the highest CD rates on 1 year certificates of deposit are just above 2.00 percent. The best CD rate right now on the rate table is 2.10 percent from Live Oak Bank.
By the end of March, expect the highest 1 year CD rate to be around 2.25 percent to 2.35 percent. Looking towards the end of 2018, the highest rate will be around 3.00 percent to 3.25 percent. The key to where rates end up is how many times the Fed increases the fed funds rate.
The Fed is expected to increase the rate at least three times in 2018. There might be more increases if inflation is higher than expected. Consequently, deposit rates will move higher than expected.
The key pieces of economic news to watch are the Consumer Price Index, Producer Price Index, hourly earnings, and the unemployment rate. Stronger economic news will force the Fed to increase rates more than three times this year.
This Week’s CD Rate Changes
The top CD rates continue to move higher as the best 2 year CD rate hits 1.70 percent this week. 2 year CD rates at Connexus Credit Union take the top spot this week at 1.69 percent with a yield of 1.70 percent. Connexus has the best rate this week but two banks are right on the credit union’s tail.
Northern Bank Direct, EverBank, and Popular Direct have the second best 2 year rate this week at 1.64 percent with a yield of 1.65 percent. We have another three-way tie for third place, My e-BAnC by BAC Florida Bank, TAB Bank, and VirtualBank all have a current 2 year rate of 1.61 percent with a yield of 1.62 percent.
Not only are the top rates moving higher this week, average 2 year CD rates are also higher. The current average 2 year CD rate is at 1.50 percent, up from last week’s average 2 year rate of 1.47 percent. Listed below are the top ten 2 year CD rates for the week ending April 15, 2017.
Best 2 Year CD Rates
Listed below is a current CD rates report for 1 year certificates of deposit as of January 14, 2017.
Current 1 Year CD Rates
For a list of today’s 1 year CD rates in our database go to MontiorBankRates.com.
TriState Capital Bank, headquartered in Pittsburgh, Pennsylvania, just increased their jumbo CD rates. All increases were 5 basis points higher on short and intermediate term certificates of deposit. TriState Capital gets a 4 out of 5 star rating. Both the old and new CD rates are listed below. You can see how these new rates compare with other bank CD rates by searching our rate lists at MonitorBankRates.com.
TriState Capital Bank Jumbo CD Rates
Astoria Bank CD rates were increased on intermediate term and long term certificates of deposit. The largest CD rate increase was on Astoria Bank’s 5 year certificate of deposit which was increased 25 basis points. 5 year CD rates were increased from 1.49 percent with a yield of 1.50 percent to 1.73 percent with a yield of 1.75 percent.
The 25 basis point increase puts Astoria Bank’s 5 year rate at 9th place on our rate list, up from 17th. Right now the top 5 year CD rate on our list is from Popular Direct at 2.03 percent with a yield of 2.05 percent. You can see the complete list of 5 year CD rates by searching our rate database at MonitorBankRates.com.
Other Astoria Bank CD rate increases include the bank’s 18 month CD rate which was increased from 0.75 percent to 0.80 percent.
The bank’s 2 year and 30 month CD rates were both increased from 1.04 percent with a yield of 1.05 percent to 1.14 percent with a yield of 1.15 percent.
4 year CD rates were increase from 1.39 percent with a yield of 1.40 percent to 1.49 percent with a yield of 1.50 percent.
You can find the best CD rates at MonitorBankRates.com.
EverBank CD rates, which are changed at least twice a month, were increased this week. This time CD rates at EverBank were increased for both short term and long term certificates of deposit. The last time their CD rates were changed was just over a week ago on October 7, 2016.
The largest CD rate increase was on 5 year certificates of deposit which were increased 9 basis points. 5 year CD rates were increased from 1.79 percent with a yield of 1.81 percent to 1.87 percent with a yield of 1.89 percent. With this rate increase, EverBank is now at 4th place on our 5 year CD rate list.
EverBank CD Rate Changes
Synchrony Bank, formerly run as GE Capital Retail Finance Corporation, has consistently offered some of the best CD rates for the past couple of years. Synchrony Bank CD rates are usually in the top 5 rates available in our database.
Let’s take a brief look at the bank’s history. Synchrony Bank and its parent company, Synchrony Financial, were created when GE Capital spun off GE Capital Retail Finance Corporation. Synchrony Financial was spun off as an initial public offering and it raised almost $3 billion. The stock is traded on the New York Stock Exchange under the ticker symbol SYF.
Most of the big banks shun deposits these days but Synchrony Bank is always actively seeking deposits. This is the main reason CD rates at Synchrony Bank are very competitive. One of the ways Synchrony Financial funds its retail credit card business is by raising deposits through the bank division.
Synchrony Financial is a leader in financing major consumer purchases, funding health care procedures, and is the largest provider of private label credit cards in the United States. Private label credit cards are cards other than the major credit cards like Amex, Visa, Master Card, etc. For example, the credit cards department stores and home improvement stores offer are private label.
Synchrony Bank’s certificates of deposit, savings accounts, and money market accounts are all insured by the Federal Deposit Insurance Corporation (FDIC). Synchrony bank’s FDIC cert number is 27314.
Current CD Rates at Synchrony Financial
Synchrony Bank CD Rates
Synchrony Bank Jumbo CD Rates
You can see how Synchrony Bank’s CD rates compare with other bank CD rates.
Four banks and one credit union changed their CD rates this past week. The good news is most of the CD rate changes were higher, despite the fact that the Fed didn’t increase the fed funds rate. 24 CD rate changes were made last week and only two CD rates were lowered, both from Connexus Credit Union.
You can see how the CD rates listed below compare with other rates available by searching our database of CD rates at MonitorBankRates.com.
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.