Current CD Bank Rates 2nd Quarter 2013
Current CD rates are holding up as we head into the 2nd quarter of 2013 with an economy that is gaining steam. GDP growth which stalled in the 4th quarter will pick up again in 2013, eventually leading to higher interest and bank CD rates in 2014. The rate of growth was 0.4 percent in the 4th quarter of 2012, down from the 3rd quarter of 3.1 percent.
GDP forecasts for 1st quarter 2013 growth are at 2.1 percent, gradually increasing to 2.7 percent growth in first quarter 2014. Sequestration will have an impact on growth in 2013 and beyond but hopefully growth in the private sector will pick up even more, mitigating any impact. Looking at 2014, GDP growth is expected to be around 2.8 percent.
Growth is gaining momentum and lowering the unemployment rate but not fast enough for the Federal Reserve to increase their key benchmark interest rate. The federal funds rate which is just above zero percent won't be increased by the Fed until the unemployment rate falls below 6.5 percent or if inflation is higher than 2.0 percent.
A fed funds rate stuck near zero percent will keep CD rates at banks low as well. The Fed forecasts the unemployment rate will fall below 6.5 percent late in 2015. If the Fed is correct, we can expect CD interest rates to also remain at current levels until the end of 2015. This is bad news for those who live off of interest gained from certificates of deposit and other interest bearing assets.
Current 12 month certificate of deposit rates are averaging 0.51 percent this week. The FDIC's national average 12 month rate is even lower at 0.22 percent. You can find rates higher than the averages. The highest 12 month CD rates offered on Monitor Bank Rates are double the national average and more than 4 times the FDIC average.
This week, the best 12 month CD rate is offered by GE Capital Retail Bank at 1.04 percent with an APY of 1.05 percent. Looking at shorter term rates, the posted 6 month national average rate FDIC 6 month average this week is at 0.13 percent and the rate available on MBR is at 0.34 percent. The best 6 month rates in our rate database are much higher at 0.88 percent from Doral Bank Direct.
The best 24 month CD rates in our rate database are higher than the averages at 1.15 percent with an APY of 1.16 percent. Average 2 year CD rates are at 0.78 percent and the FDIC national average 2 year rate is at 0.35 percent. CD rates at banks in the FDIC national survey this week are averaging 0.35 percent while the best 3 year rates in our database are at 1.35 percent with an APY of 1.36 percent.
Moving onto 4 year certificates of deposit, we find the FDIC average this week is at 0.59 percent and the highest 4 year CD rates in our database are at 1.55 percent with an APY of 1.56 percent. The national average 5 year rate posted on MBR is at 1.21 percent and the FDIC average 5 year rate is at 0.77 percent. The best 5 year CD rate in our database this week is at 1.85 percent with an APY of 1.87 percent.