Certificate of Deposit Rates are Stable as Bond Yields Drop

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As equity markets tank and oil continues to drop, rates on certificates of deposit are stable  in 2015. The uncertainty in the markets is driving the classic investor flight to quality as investors rush to buy U.S. Treasuries, forcing yields lower. 10 year bond yields are under 2.00 percent and traded as low as 1.89 percent today. Last month 10 year bond yields were as high as 2.25 percent.

CD rates on 1 year certificates of deposit are averaging 0.99 percent this week, unchanged from last week's average 1 year CD rate. The average rate on 1 year CDs has been in the current range for the past 6 months. The best CD rates on 1 year CDs has increased about 15 basis points during that time. The best 1 year rate this week in the rate database remains at 1.16 percent with an APY of 1.17 percent.



2 year certificate of deposit rates are averaging 1.20 percent this week, also unchanged from last week's average 2 year rate. The highest 2 year rate available in the database is at 1.39 percent with an APY of 1.40 percent. 2 year rates have also increased the past 6 months as banks and credit unions look to lock in deposits at these current low rates.

Average 5 year certificate of deposit rates are down 1 basis point this week. The current average 5 year CD rate is at 1.82 percent, down from last week's average 5 year rate of 1.83 percent. The highest 5 year rate available in the database this week is at 2.23 percent with an APY of 2.25 percent. There are currently 5 banks in the database offering 5 year CDs at that rate and yield. Listed below are banks with the highest rates this week for certificate of deposit terms of 1 year, 2 years and 5 years.

Top Certificate of Deposit Rates


1 Year CD Rates

  • Bank Direct 1.16% APY 1.17%

  • CIT Bank 1.14% APY 1.15%

  • Synchrony Bank 1.14% APY 1.15%

  • My e-BAnC by BAC Florida Bank 1.14% APY 1.15%

  • Sallie Mae Bank 1.14% APY 1.15%


2 Year CD Rates

  • iGObanking.com 1.39% APY 1.40%

  • Pentagon Federal Credit Union 1.35% APY 1.36%

  • CIT Bank 1.34% APY 1.35%

  • Nationwide Bank 1.32% APY 1.33%


  • My e-BAnC by BAC Florida Bank 1.30% APY 1.31%


5 Year CD Rates

  • Synchrony Bank 2.23% APY 2.25%

  • Nationwide Bank 2.23% APY 2.25%

  • EverBank 2.23% APY 2.25%

  • GE Capital Bank 2.23% APY 2.25%

  • Barclays Bank 2.23% APY 2.25%


 
 
Author: Brian McKay
January 8th, 2015