Current CD Rates, the Calm Before the Storm

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The next few months will be the calm before the storm regarding CD rates. Banks and credit unions will keep CD rates near current levels until the Federal Open Market Committee (FOMC) increases the federal funds rate. Our money is on the FOMC increasing the fed funds rate in the June meeting.

The last time the fed funds rate was increased was way back in July 2006, when the rate was increased from 5.00 percent to 5.25 percent. You can view the rate's history going back to 1954 on the St. Louis Fed's website: Fed Funds Rate Chart



The current fed funds rate, near 0.00 percent, is a long way away from 5.00 percent. Unless inflation picks up considerably, we don't expect to see the fed funds rate near 5.00 percent until 2018. By the end of 2015, the rate should be near 1.00 percent, which will send 1 year bank CD rates above 2.00 percent. The last time we saw a 2.00 percent rate on a 1 year certificate of deposit was about 5 years ago.

Average CD Rates April 13 2015Right now the best CD rates on 1 year certificates of deposit offered by a bank are at 1.22 percent with an APY of 1.23 percent. The best CD rate offered by a credit union on the rate table is slightly higher at 1.30 percent with an APY of 1.31 percent.

You can view average CD rates in the chart to the right.

Listed below are the highest CD rates at banks and credit unions for April 13, 2015:


6 Month CD Interest Rates

  • Zions Direct Rate 1.00% APY 1.00%

  • California First National Bank Rate 0.85% APY 0.85%

  • Chartway Federal Credit Union Rate 0.85% APY 0.85%

  • EH National Bank Rate 0.80% APY 0.80%

  • My e-BAnC by BAC Florida Bank Rate 0.80% APY 0.80%

  • Giantbank.com Rate 0.75% APY 0.75%


1 Year CD Interest Rates

  • Chartway Federal Credit Union Rate 1.30% APY 1.31%

  • Connexus Credit Union Rate 1.30% APY 1.30%

  • Synchrony Bank Rate 1.22% APY 1.23%

  • BankDirect Rate 1.20% APY 1.21%

  • My e-BAnC by BAC Florida Bank Rate 1.19% APY 1.20%

  • Congressional Bank Rate 1.19% APY 1.20%

  • GE Capital Bank 1.19% APY 1.20%

  • Home Savings Bank 1.19% APY 1.20%

  • California First National Bank Rate 1.15% APY 1.16%

  • Virtual Bank Rate 1.15% APY 1.16%

  • Midwest Regional Bank Rate 1.10% APY 1.10%

  • AloStar Bank of Commerce Rate 1.09% APY 1.10%

  • Silvergate Bank Rate 1.07% APY 1.08%

  • Giantbank.com Rate 1.05% APY 1.06%

  • Ally Bank Rate 1.04% APY 1.05%


2 Year CD Interest Rates

  • Live Oak Bank Rate 1.50% APY 1.50%

  • CIT Bank Rate 1.34% APY 1.35%

  • Synchrony Bank Rate 1.34% APY 1.35%

  • Barclays Bank Rate 1.34% APY 1.35%

  • Congressional Bank Rate 1.34% APY 1.35%

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


3 Year CD Interest Rates

  • Synchrony Bank Rate 1.49% APY 1.50%

  • Lone Star Bank Rate 1.49% APY 1.50%

  • First Internet Bank of Indiana Rate 1.45% APY 1.46%

  • Barclays Bank Rate 1.44% APY 1.45%

  • GE Capital Bank Rate 1.44% APY 1.45%

  • Discover Bank Rate 1.44% APY 1.45%


4 Year CD Interest Rates

  • Nationwide Bank Rate 1.88% APY 1.90% APY

  • CIT Bank Rate 1.85% APY 1.87%

  • Barclays Bank Rate 1.83% APY 1.85%

  • Virtual Bank Rate 1.77% APY 1.78%

  • Discover Bank Rate 1.74% APY 1.76%

  • Synchrony Bank Rate 1.73% APY 1.75%

  • GE Capital Bank Rate 1.73% APY 1.75%


5 Year CD Interest Rates

  • Synchrony Bank Rate 2.23% APY 2.25%

  • Barclays Bank Rate 2.23% APY 2.25%

  • GE Capital Bank Rate 2.23% APY 2.25%

  • Home Savings Bank 2.13% APY 2.15%

  • First Internet Bank of Indiana Rate 2.10% APY 2.12%

  • Discover Bank 2.08% APY 2.10%

 
Author: Brian McKay
April 13th, 2015