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Best Short Term CD Rates This Week

We have been recommending staying invested in shorter term certificates of deposit because we believe CD rates will move higher sooner than later. Until recently, the conventional wisdom was that bank CD rates will remain low until the end of 2015, the point at which the Federal Open Market Committee (FOMC) plans to keep the fed funds rate at zero percent.

 The Fed recently said they will change their accommodating stance of keeping interest rates near zero percent until the unemployment rate falls below 6.5 percent, which the Fed believes will happen at the end of 2015. We believe the unemployment rate will fall below 6.5 percent before then.

As soon as all the budget and deficit issues are resolved in Washington D.C. the economy should take off. There are many years of pent-up demand for housing which will add to GDP in a significant way the next several years. We expect the unemployment rate to fall below 6.5 percent some time in 2014, which would lead to higher CD rates in 2014.

Make no mistake, rates are moving higher so to take advantage of higher rates you should be invested in shorter term certificates of deposit. Not only are rates moving higher right now, the rate difference between the shortest term CD rates and longest term CD rates is minimal, another reason to say invested in shorter term CD accounts. Below are lists of the best CD rates for 3 month, 6 month and 12 month certificates of deposit this week:

3 Month Rates

  • E-Loan Rates 0.65% APY 0.65%

  • EverBank Rates 0.51% APY 0.51%

  • Virtual Bank Rates 0.50% APY 0.50%

  • AloStar Bank of Commerce Rates 0.45% APY 0.45%

  • Barclays Bank Rates 0.40% APY 0.40%

  • Discover Bank Rates 0.40% APY 0.40%

6 Month Rates

  • Doral Bank Rates 0.89% APY 0.89%

  • Colorado FSB Rates 0.80% APY 0.80%

  • Ascencia 0.78% APY 0.78%

  • Discover Bank Rates 0.75% APY 0.75%

  • ableBanking Rates 0.75% APY 0.75%

12 Month Rates

  • Colorado FSB CD Rates 1.04% APY 1.05%

  • E-Loan CD Rates 1.02% APY 1.02%

  • Home Savings Bank CD Rates 1.00% APY 1.00%

  • ableBanking CD Rates 1.00% APY 1.00%

  • The National Republic Bank of Chicago Rates 1.00% APY 1.00%

  • Ally Bank CD Rates 0.99% APY 0.99%

Author: Jason P. Jones
February 10th, 2013