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CD Rates at Banks July 2, 2013: Highest 1 Year Rates at 1.05% APY

Heading towards Independence Day, interest rates on certificates of deposit are stable as bond yields following after recent gains.  Average CD rates on 1 year certificates of deposit are at 0.66 percent while the best CD rates on 1 year CD accounts are at 1.05 percent APY. 10 year bond yields hit a high of 2.60 percent on June 26th but on July 1st declined to 2.50 percent.

The fast increase in long term bond yields took everyone by surprise but the increases weren't warranted and yields will start drifting lower in July. The reason for the sharp increase in yields the past month was concerns that the Federal Reserve would pull back on their stimulus measures. The Federal Reserve has suppressed interest rates for many years now in order to help the economy grow.



Majority of Fed Officials to Keep Fed Funds Rate at Zero Percent Until 2015


A majority of Fed officials said their stimulus measures of keeping the Fed funds rate at zero percent will remain in place for another 2 years. Several Fed officials the past week also said the Fed will continue to purchase bonds and mortgage backed securities to force interest rates lower.

Regardless if bond yields move higher or lower in the month of July, CD rates will barely move in either direction. Below is a list of the highest CD rates for all CD terms in our rate database as of July 2, 2013:

July 2, 2013 Best CD Rates at Banks


1 Month CD Rate 0.15%
2 Month CD Rate 0.20%
3 Month CD Rate 0.46%
6 Month CD Rate 0.61%
9 Month CD Rate 0.92%
1 Year CD Rate 1.04% 1.05% APY
18 Month CD Rate 1.04% 1.05% APY
2 Year CD Rate 1.10% 1.10% APY
30 Month CD Rate 1.09%  1.10% APY
3 Year CD Rate 1.24% 1.25% APY
4 Year CD Rate 1.42% 1.43% APY
5 Year CD Rate 1.74% 1.76% APY
 
Author: Brian McKay
July 2nd, 2013