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Year Ending 2013 List of the Best CD Rates

Ending 2013, some banks are increasing long term CD rates to compete with higher long term bond yields. For the past three months of 2013, about half a dozen banks have increased long term CD rates on our rate list. The same can't be said for shorter term CD rates because shorter term bond rates haven't increased and the Federal Reserve hasn't increased the federal funds rate.

One credit union in our database of rates has sharply increased the rates they pay on long term certificates. Pentagon Federal Credit Union increased their 5 year and 7 year "money market certificates"  to over 3.00 percent, which is much higher than any other comparable terms in our database. In fact, PenFed now has the best CD rates in our database for terms of 1 year to 5 years.

Direction of CD Rates in 2014

In 2014 we will continue to see increases in long term CD rates and small increases in short term CD rates. The increase in rates won't be substantial and the majority of financial institutions, banks, and credit unions won't increase their rates. An across-the-board increase in rates won't come until the Federal Reserve increases the fed funds rate, which is currently in a range of zero percent to one quarter percent.

The highest CD rate in our database of 1 year certificates of deposit is at 1.09 percent with an APY of 1.10 percent. (Alsostar Bank of Commerce CD Rates). In 2014, we may see some banks increase their 1 year rates to around the 1.30 percent to 1.35 percent range but not much higher unless the fed funds rate is increased.

Current End of Year 2013 CD Rates

Best 1 Year CD Rates

  • Alostar Bank of Commerce 1.09% APY 1.10%

  • GE Capital Retail Bank Optimizer Plus 1.04% APY 1.05%

  • Pacific Mercantile Bank 1.01% APY 1.02%

  • My e-BAnC by BAC Florida Bank 1.00% APY 1.01%

  • The Palladian PrivateBank 1.00% APY 1.00%

Best 2 Year CD Rates

  • Pentagon Federal Credit Union 1.40% APY 1.41%

  • AloStar Bank of Commerce 1.24% APY 1.25%

  • CIT Bank 1.19% APY 1.20%

  • Pacific Mercantile Bank 1.15% APY 1.16%

  • GE Capital Retail Bank 1.14% APY 1.15%

Best 3 Year CD Rates

  • Pentagon Federal Credit Union CD Rates 2.00% APY 2.02%

  • Intervest National Bank 1.44% APY 1.45%

  • AloStar Bank of Commerce 1.34% APY 1.35%

  • GE Capital Retail Bank Optimizer Plus 1.29% APY 1.30%

  • Salem Five 1.29% APY 1.30%

Best 4 Year CD Rates

  • Pentagon Federal Credit Union 2.20% APY 2.22%

  • EverBank 1.67% APY 1.68%

  • Nationwide Bank 1.66% APY 1.67%

  • Barclays Bank 1.64% APY 1.65%

  • Intervest National Bank 1.64% APY 1.65%

Best 5 Year CD Rates

  • Pentagon Federal Credit Union 3.00% APY 3.04%

  • EverBank 2.14% APY 2.16%

  • 2.13% APY 2.15%

  • GE Capital Retail Bank Optimizer Plus 1.98% APY 2.00%

  • Barclays Bank 1.98% APY 2.00%

Author: Brian McKay
December 27th, 2013