The Best CD Rates on 1 Year Certificates of Deposit on Christmas Eve

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Christmas Eve and the fiscal cliff is upon us as the best CD rates on 1 year certificates of deposit remain unchanged at 1.04 percent. Average 12 month CD rates also remain unchanged this week over last at 0.71 percent. Currently on our 1 year bank CD rates list we have five banks offering the highest rate at 1.04 percent with an APY of 1.05 percent.

The future direction of both the highest CD rates and average CD rates on 12 month certificates of deposit will be lower. The declines in 2013 will be minimal as rates are so low already they really can't go much lower. Yes, there are many banks offering rates well below the averages, some as low as 0.20 percent, but those banks obviously are not interested in raising deposits by offering rates at very low levels.



We don't anticipate interest rates increasing after 2013 because the Fed plans to hold the Fed funds rate at a targeted range of zero percent to 1/4 percent until mid-2015. The only variables that might change that policy is inflation higher than 2.5 percent or an unemployment rate below 6.00 percent which most economists and the Fed believe won't be obtained until mid-2015.

Here is a quick rundown of the highest CD rates at banks on Christmas Eve 2012:

  • CIT Bank 12 Month CD Rate 1.04% APY 1.05%

  • Sallie Mae Bank 12 Month CD Rate 1.04% APY 1.05%

  • Colorado FSB 12 Month CD Rate 1.04% APY 1.05%

  • MetLife Bank 12 Month CD Rate 1.04% APY 1.05%

  • ableBanking 12 Month CD Rate 1.04% APY 1.05%

  • Ally Bank 12 Month CD Rate 1.03% APY 1.04%

  • E-Loan 12 Month CD Rate 1.02% APY 1.02%

  • Discover Bank 12 Month CD Rate 1.00% APY 1.00%

  • GiantBank.com 12 Month CD Rate 1.00% APY 1.00%

  • Doral Bank 12 Month CD Rate 0.99% APY 0.99%

  • California First National Bank 12 Month CD Rate 0.95% APY 0.95%

  • Ascencia, a div of PBI Bank 12 Month CD Rate 0.90% APY 0.90%

  • AIG Bank 1 Year CD Rate 0.90% APY 0.90%

  • Virtual Bank 1 Year Bank CD Rate 0.90% APY 0.90%


Average and best rates on 12 month certificates of deposit won't be the only CD terms that will see lower rates for the next couple of years. All other CD terms from 1 month to 10 years will also head lower in 2013 and 2014.
 
Author: Jason P. Jones
December 24th, 2012