Long Term Average CD Rates Move Higher While Short Term CD Rates Decline
The next two day FOMC meeting is schedule for September 17 - 18 and right after the meeting on the 18th, the FOMC will release a statement. While no one believes the federal funds rate will be increased in the next meeting, markets will be watching to see if the FOMC announces any changes to their bond and mortgage purchases.
Possible Ending of FOMC Stimulus Sent Long-Term CD Rates Slightly Higher
Concern that the FOMC will begin winding down their purchases has sent long term bond yields and mortgage rates higher by over 100 basis points, or 1.00 percent. The increase in long term bond yields has had a small impact on long term CD rates but not short term CD rates.
Average CD Rates September 6, 2013
Average 5 year CD rates increased to 1.35 percent this week, up from last week's average 5 year CD rate of 1.32 percent. Average 2 year bank CD rates this week are at 0.82 percent, down from last week's average 2 year bank rate of 0.84 percent.
1 year CD rates this week are averaging 0.68 percent, down from last week's average 1 year CD rate of 0.71 percent. 6 month CD rates averaged 0.46 percent this week, down 1 basis point from last week's average rate of 0.47 percent. 3 month CD rates at banks are averaging 0.23 percent, down from last week's average of 0.24 percent.
Find the best CD rates here at Monitor Bank Rates.
Best CD Rates Available September 6, 2013
5 Year CD Rates
While average 5 year CD rates only moved slightly higher the past several months, many banks increased their 5 year rates by large margins. Back in early June, the best CD rates in our 5 year rate database were around 1.50 percent. Now we have many banks offering 5 year rates well above 1.50 percent.
The highest CD rates in our rate database for 5 year CDs is at 2.03 percent with an APY of 2.05 percent. Historically speaking, getting a 2 percent 5 year CD rate is low but when you compare it to the current average 5 year rate of 1.35 percent, the rate looks a lot better.
4 Year CD Rates
3 Year CD Rates
2 Year CD Rates
1 year CD Rates
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