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Long Term Average CD Rates Move Higher While Short Term CD Rates Decline

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Long term average CD rates moved higher this week while short term average rates declined. The moves in both short term and long term rates were small. Until the Federal Open Market Committee votes to increase the federal funds rate, CD rates and all deposit rates will remain low. The current federal funds rate is set in a targeted range of 0 percent to ¼ percent.

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

  • Intervest National Bank CD Rate 1.64% APY 1.65%

  • iGObanking.com CD Rate 1.64% APY 1.65%

  • EverBank CD Rate 1.55% APY 1.56%

  • Barclays CD Rate 1.54% APY 1.55%

  • Nationwide Bank CD Rate 1.54% aPY 1.55%


3 Year CD Rates

  • Intervest National Bank CD Rate 1.54% APY 1.55%

  • iGObanking.com CD Rate 1.39% APY 1.40%

  • EverBank CD Rate 1.28% APY 1.29%

  • AloStar Bank of Commerce CD Rate 1.24% APY 1.25%

  • Barclay Bank CD Rate 1.24% APY 1.25%


2 Year CD Rates

  • Nationwide Bank CD Rate 1.14% APY 1.15%

  • My e-BAnC by BAC Florida Bank CD Rate 1.10% APY 1.11%

  • The Palladian PriveBank CD Rate 1.10% APY 1.10%

  • AloStar Bank of Commerce CD Rate 1.09% APY 1.10%

  • Doral Direct CD Rate 1.08% APY 1.08%


1 year CD Rates

  • GE Capital Retail Bank CD Rate 1.04% APY 1.05%

  • Colorado FSB CD Rate 1.00% APY 1.00%

  • The Palladian PriveBank CD Rate 1.00% APY 1.00%

  • Nationwide Bank CD Rate 0.96% APY 0.96%

  • EH National Bank CD Rate 0.95% APY 0.95%


 
 
Author: Brian McKay
September 6th, 2013