CD Rates

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1 Year CD from Barclays
Barclays
https://www.brimg.net/system/img/inst/7987_logo.gif
2.1
2.08
5
100
Barclays Logo
★★★★★  (5 out of 5)100
04/20/2018
1 Year CD from Capital One 360
Capital One 360
https://www.brimg.net/system/img/inst/8351_logo.gif
2.1
2.08
5
100
Capital One 360 Logo
★★★★★  (5 out of 5)100
04/20/2018
1 Year CD from EverBank
EverBank
https://www.brimg.net/system/img/inst/2468_logo.gif
2.1
2.08
4
100
EverBank Logo
★★★★  (4 out of 5)100
04/20/2018
 
1 Year CD from Goldman Sachs Bank USA
Goldman Sachs Bank USA
https://www.brimg.net/system/img/inst/9904_logo.gif
2.1
2.08
5
100
Goldman Sachs Bank USA Logo
★★★★★  (5 out of 5)100
04/20/2018
 
1 Year CD from Sallie Mae
Sallie Mae
https://www.brimg.net/system/img/inst/6642_logo.gif
2.1
2.08
5
100
Sallie Mae  Logo
★★★★★  (5 out of 5)100
04/20/2018
1 Year CD from Pentagon Federal Credit Union
Pentagon Federal Credit Union
https://www.brimg.net/system/img/inst/2212_logo.gif
2.07
2.05
4
100
Pentagon Federal Credit Union Logo
★★★★  (4 out of 5)100
04/20/2018
 
1 Year CD from Ally Bank
Ally Bank
https://www.brimg.net/system/img/inst/5068_logo.gif
2
1.98
5
100
Ally Bank Logo
★★★★★  (5 out of 5)100
04/20/2018
1 Year CD from First Internet Bank of Indiana
First Internet Bank of Indiana
2.22
2.2
4
100
First Internet Bank of Indiana

★★★★  (4 out of 5)100
1 yr CD
2.220%
04/20/2018
2.200%
$1,000.00
 
1 Year CD from BankPurely, a division of Flushing Bank
BankPurely, a division of Flushing Bank
2.2
2.18
4
100
BankPurely, a division of Flushing Bank

★★★★  (4 out of 5)100
1 yr CD
2.200%
04/20/2018
2.180%
$1,000.00
 
1 Year CD from Colorado Federal Savings Bank
Colorado Federal Savings Bank
2.2
2.18
4
100
Colorado Federal Savings Bank

★★★★  (4 out of 5)100
1 yr CD
2.200%
04/20/2018
2.180%
$5,000.00
 
1 Year CD from Live Oak Bank
Live Oak Bank
2.2
2.18
5
100
Live Oak Bank

★★★★★  (5 out of 5)100
1 yr CD
2.200%
04/20/2018
2.180%
$2,500.00
Member FDIC. No opening and maintenance fees. 
1 Year CD from PurePoint Financial
PurePoint Financial
2.2
2.18
4
100
PurePoint Financial

★★★★  (4 out of 5)100
1 yr CD
2.200%
04/20/2018
2.180%
$10,000.00
 
1 Year CD from iGObanking
iGObanking
2.2
2.18
4
100
iGObanking

★★★★  (4 out of 5)100
1 yr CD
2.200%
04/20/2018
2.180%
$1,000.00
 
1 Year CD from AloStar, a division of State Bank
AloStar, a division of State Bank
2.2
2.17
5
100
AloStar, a division of State Bank

★★★★★  (5 out of 5)100
1 yr CD
2.200%
04/20/2018
2.170%
$1,000.00
 
1 Year CD from M.Y. Safra Bank, FSB
M.Y. Safra Bank, FSB
2.18
2.16
M.Y. Safra Bank, FSB

  (NR out of 5)100
1 yr CD
2.180%
04/20/2018
2.160%
$5,000.00
 
1 Year CD from Limelight Bank
Limelight Bank
2.17
2.15
5
100
Limelight Bank

★★★★★  (5 out of 5)100
1 yr CD
2.170%
04/20/2018
2.150%
$1,000.00
 
1 Year CD from My eBanc, A Division of BAC Florida Bank
My eBanc, A Division of BAC Florida Bank
2.17
2.15
4
100
My eBanc, A Division of BAC Florida Bank

★★★★  (4 out of 5)100
1 yr CD
2.170%
04/20/2018
2.150%
$5,000.00
3 Months Penalty. Make sure to check our Jumbo Rates 
1 Year CD from TAB Bank
TAB Bank
2.17
2.15
5
100
TAB Bank

★★★★★  (5 out of 5)100
1 yr CD
2.170%
04/20/2018
2.150%
$1,000.00
Member FDIC. Great Rates on Savings. 
1 Year CD from Home Savings Bank
Home Savings Bank
2.15
2.13
5
100
Home Savings Bank

★★★★★  (5 out of 5)100
1 yr CD
2.150%
04/20/2018
2.130%
$5,000.00
 
1 Year CD from Synchrony Bank
Synchrony Bank
2.15
2.13
5
100
Synchrony Bank

★★★★★  (5 out of 5)100
1 yr CD
2.150%
04/20/2018
2.130%
$2,000.00
Great Rates + Safety = Peace of Mind 
1 Year CD from Banesco USA
Banesco USA
2.1
2.1
4
100
Banesco USA

★★★★  (4 out of 5)100
1 yr CD
2.100%
04/20/2018
2.100%
$1,500.00
Having a Banesco USA CD earns you more money. Member FDIC 
1 Year CD from Goldwater Bank
Goldwater Bank
2.1
2.1
Goldwater Bank

  (NR out of 5)100
1 yr CD
2.100%
04/20/2018
2.100%
$5,000.00
 
1 Year CD from VirtualBank
VirtualBank
2.1
2.08
4
100
VirtualBank

★★★★  (4 out of 5)100
1 yr CD
2.100%
04/20/2018
2.080%
$10,000.00
FDIC Insured 
1 Year CD from Discover Bank
Discover Bank
2
1.98
5
100
Discover Bank

★★★★★  (5 out of 5)100
1 yr CD
2.000%
04/20/2018
1.980%
$2,500.00
 
1 Year CD from IncredibleBank
IncredibleBank
1.96
1.95
4
100
IncredibleBank

★★★★  (4 out of 5)100
1 yr CD
1.960%
04/20/2018
1.950%
$1,000.00
 
1 Year CD from Luana Savings Bank
Luana Savings Bank
1.86
1.85
5
100
Luana Savings Bank

★★★★★  (5 out of 5)100
1 yr CD
1.860%
04/20/2018
1.850%
$1,000.00
 
1 Year CD from giantbank.com
giantbank.com
1.76
1.75
5
100
giantbank.com

★★★★★  (5 out of 5)100
1 yr CD
1.760%
04/20/2018
1.750%
$2,500.00
 
1 Year CD from ableBanking, a division of Northeast Bank
ableBanking, a division of Northeast Bank
1.75
1.74
5
100
ableBanking, a division of Northeast Bank

★★★★★  (5 out of 5)100
1 yr CD
1.750%
04/20/2018
1.740%
$1,000.00
$25 New Customer Gift to give to charity (501c3). FDIC insured. 
1 Year CD from California First National Bank
California First National Bank
1.66
1.65
5
100
California First National Bank

★★★★★  (5 out of 5)100
1 yr CD
1.660%
04/20/2018
1.650%
$5,000.00
 
1 Year CD from 5 Star Bank
5 Star Bank
1.65
1.64
5
100
5 Star Bank

★★★★★  (5 out of 5)100
1 yr CD
1.650%
04/20/2018
1.640%
$1,000.00
 
1 Year CD from Pacific National Bank
Pacific National Bank
1.6
1.59
4
100
Pacific National Bank

★★★★  (4 out of 5)100
1 yr CD
1.600%
04/20/2018
1.590%
$1,000.00
 
1 Year CD from Northern Bank Direct
Northern Bank Direct
1.5
1.49
4
100
Northern Bank Direct

★★★★  (4 out of 5)100
1 yr CD
1.500%
04/20/2018
1.490%
$500.00
 
1 Year CD from NewDominion Bank
NewDominion Bank
1.35
1.34
4
100
NewDominion Bank

★★★★  (4 out of 5)100
1 yr CD
1.350%
04/20/2018
1.340%
$1,000.00
Achieve Rapid Growth Results w/Our Rates! Open Online-Member FDIC 
1 Year CD from EH National Bank
EH National Bank
1.1
1.1
5
100
EH National Bank

★★★★★  (5 out of 5)100
1 yr CD
1.100%
04/20/2018
1.100%
$10,000.00
 
1 Year CD from NBKC Bank
NBKC Bank
1.11
1.1
5
100
NBKC Bank

★★★★★  (5 out of 5)100
1 yr CD
1.110%
04/20/2018
1.100%
$1,000.00
 
1 Year CD from Sandia Area Federal Credit Union
Sandia Area Federal Credit Union
1.1
1.95
Sandia Area Federal Credit Union

  (NR out of 5)100
1 yr CD
1.100%
04/16/2018
1.950%
$500.00
 

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Low savings rates were one of the topics at a House Finance hearing this week. It’s nice to hear a Congressman complain to the Fed Chairman about low savings account rates.

In a hearing for the Semi-Annual Monetary Policy Report to the Congress, the House Financial Service Committee Chairman, Jeb Hensarling stated, “…the Fed is currently paying 150 basis points yet our constituents typically receive about 10 basis points on their savings account.” 

Powell’s response was “…retail deposits are sticky on the way up as you know, and they generally come up with a lag.

You can view the exchange on savings rates between the Fed Chairman and Congressman in this short clip provided by CSPAN.

Hensarling saying constituents are getting 10 basis points on a savings account is generous. The FDIC’s current average rate is actually 0.07 percent. Savings rates offered by some large banks are much lower. Three large national banks are currently offering a staggering 0.01 percent on savings accounts.

Opening a savings account at a large bank is rarely advisable due to their low rates. Online banks currently offer online savings rates much higher than the average rate.

Low Savings RatesThe Federal Reserve’s low interest rate policy of near zero percent for seven years decimated deposit rates. As a result, depositors who relied on interest income from deposits saw their income plummet the past decade.

On December 16, 2008, the Fed lowered the fed funds rate 100 basis points to near zero percent. The rate stayed at near zero percent for seven years until December 17, 2015, when the Fed increased the rate 25 basis points. During the same time, the best 1 year CD rates plummeted from around 5.00 percent to under 1.00 percent.

You can view a history of the fed funds rate changes here.

Low Savings Rates Finally Move Higher

Banks finally started increasing interest rates over a year ago but rates are still historically low.

The FDIC Average National Savings Rate is currently at 0.07 percent. The highest online savings rate is much higher at around 1.60 percent. The FDIC’s National Average 12 Month CD rate is currently at 0.32 percent. The best 1 year CD rate is also much higher around 2.10 percent.

Banks are expected to continue to increase deposit rates since the Fed is expected increase the fed funds rate. There may be as many as four rate hikes in 2018. Each rate hike is typically 25 basis points, or 0.25 percent. Four hikes will send deposit rates up another 100 basis points, or 1.00 percent.

 
Author: Brian McKay

CD rates in 2018 continue to move as banks and credit unions increase rates. Interest rates have been increasing since December 2016, when the Federal Reserve started increasing the fed funds rate. Since then, the Fed has increased the fed funds rate four times for a total of 100 basis points. You can see a list of fed funds rate changes going back to 2003 at The Fed – Open Market Operations.

During the same time, short term CD rates moved higher because the fed put upward pressure on short term interest rates. The highest CD rates on 3 month certificates of deposit have gone from 0.65 percent to the current rate of 1.50 percent.

6 month CD rates are currently at 1.90 percent, up from December 2016’s rate of .85 percent. 1 year rates have increased from around 1.05 percent during December 2016 to the current CD rate of 2.07 percent.

Short term U.S. Treasury yields also had sharp moves higher the past 15 months. 3 month yields increased from 0.50 percent to yesterday’s close of 1.62 percent. Yields on 6 month Treasuries are currently at 1.83 percent, up from around 0.60 percent. 1 year yields increased from around 0.90 percent to 2.00 percent. Source: U.S. Department of The Treasury – Daily Treasury Yield Curve Rates.

Future Outlook for CD Rates in 2018

CD Rates in 2018We anticipate CD rates will continue to move higher in 2018 because the Fed will continue to increase the fed funds rate this year. The Fed’s own projection materials, last updated in December 2017, shows the Fed projects the fed funds rate to be at 2.1 percent by the end of 2018. The current fed funds rate is at 1.50 percent, 60 basis points below 2.10 percent.

If the Fed’s projections are correct, we will see short term CD rates move up another 60 to 75 basis points. 3 month CD rates would be around 2.25 percent, 6 month CD rates would increase above 2.50 percent and 1 year CD rates would be around 3.00 percent.

One important point to make is that the Fed’s last projection in December was before the tax cut. We may very well see the Fed increase rates because of the inflationary pressure of the tax cut. The next set of projection materials will be released when the Fed wraps up their next meeting on March 21st.

The good news is that CD rates are moving higher and are likely to continue the uptrend this year and into 2019.

 
Author: Brian McKay

12 Month CD ratesWe just reached a new milestone for 12 Month CD rates in 2017 as rates continue to inch higher. Crestmark Bank is now offering 12 Month CD rates at 1.80 percent. Just about two months ago, we reported a new high for 1 year CD rates at 1.70 percent. That new high was also from CrestMark Bank. You can read about that post Crestmark Bank Best Rate 1.70%.

The uptrend for CD rates will continue for the rest of this year and into at least 2018 and it may last even longer if the economy doesn’t fall into a recession. The Federal Open Market Committee meets this month and will more than likely increase the fed funds rate by 25 basis points.

Another fed funds rate increase will put additional upward pressure on short term interest rates. 1 year CD rates could therefore hit 1.90 percent this month and 2.00 percent sometime early in 2018. Back in early October, we forecast 1 year CD rates hitting 2.00 percent as a result of another fed funds rate increase.

Current 12 Month CD Rates December 2017

  1. Crestmark Bank 1.80%
  2. Banesco USA 1.75%
  3. CDBank.com 1.75%
  4. Limelight Bank 1.71%
  5. First Internet Bank of Indiana 1.71%
  6. TAB Bank 1.70%
  7. ableBanking, a division of Northeast Bank 1.70%
  8. Sallie Mae 1.70%
  9. Live Oak Bank 1.70%
  10. Colorado Federal Savings Bank 1.70%
  11. My eBanc, A Division of BAC Florida Bank 1.70%
  12. M.Y. Safra Bank, FSB 1.70%
  13. VirtualBank 1.69%
  14. EverBank 1.68%
  15. Capital One 1.65%
  16. GS Bank 1.65%
  17. Synchrony Bank 1.65%
  18. Ally Bank 1.65%
  19. Pentagon Federal Credit Union 1.61%
  20. Pacific National Bank 1.61%

Longer term forecasts for 12 month CD rates and interest rates in general, is higher. The Fed’s own projection for the fed funds rate in 2018 and 2019 is higher from the current level of 1.00 percent to 1.25 percent. Projections released in September forecast the median rate for the fed funds rate to be at 2.10 percent in 2018 and 2.70 percent in 2019.

The next set of projection materials scheduled to be released in March 2018 will be higher because of the Republican tax plan. As a result, the forecast federal funds rate will be increased at least 5o basis to 75 basis points higher next year and in 2019.

 
Author: Brian McKay

Crestmark Bank 1 Year CD RatesShort term online CD rates continue to march higher as another month brings another new high for 1 year CD rates. Last month the top 1 year CD rate was at 1.65 percent. This month Crestmark Bank 1 year CD rates are now offering the best rate.

CD rates have moved higher since the beginning of 2017. In early January, the top 1 year CD rate was at 1.30 percent. By April 1st, the top 1 year CD at rate moved 10 basis points higher at 1.40 percent. In July the top rate moved up to 1.50 percent.

Crestmark Bank 1 Year CD Rates

1 year CD rates at Crestmark Bank are now the best rate at 1.70%. Crestmark bank is based out of Tory, Michigan. The minimum opening deposit for a 1 year certificate of deposit is $25,000. You can read more about this bank at Crestmark Bank 1 year certificate of deposit rate.

If you don’t have $25k to open a CD account, you can still get a very good online 1 year CD rate. Goldman Sachs Bank USA has the second best 1 year CD rate at 1.65% but their minimum opening deposit is only $500.

New Forecast for 1 Year CD Rates

A couple of weeks ago, we forecast 1 year rates would hit 1.75 percent this year. That is only if the Fed increased the fed funds rate once more in 2017. Now that 1 year rates are only 5 basis points away from 1.75 percent we are increasing our forecast. We now forecast 1 year CD rates will hit 1.75 regardless of whether or not the Fed increases the fed funds rate.

We are also forecasting 1 year CD rates will hit 2.00 percent if the fed increases the fed funds rate. The Fed has telegraphed one more rate hike in 2017, which is expected to happen during the December meeting. If the rate is hiked, we expect 1 year CD rates to hit 2.00 percent soon after.

 
Author: Brian McKay

The financial crisis and great recession almost a decade ago forced interest rates down to record lows. Over the past year, short term interest rates started to move higher. At the same time long term interest rates remain near historical lows. Why is this happening?

There are several factors causing long term interest rates to remain near historical lows, despite four fed funds rate increases totaling 100 basis points, or 1.00 percent. Low inflation, slower productivity growth, and a surplus of global savings have kept a lid on long term rates.

Investors have a gloomy economic outlook and anticipate low rates of inflation and output growth to persist for the foreseeable future. This outlook has also put downward pressure on long term rates.

Long Term Interest Rates In Long Term Down Trend

Long term interest rates globally have traded down for almost three decades now. You can see in the chart below, 10 year government bond yields declined in the U.S, Germany, U.K, Canada, and Japan since 1990.

10 Year U.S. Government Bonds - Interest Rates

 

None of the factors mentioned above are expected to change much in the future. Yes, the Fed has announced they would begin implementing a balance sheet normalization program this year, but the Fed’s actions still won’t raise long term rates.

There has also been a change in the term premium on long term bonds because of accommodative monetary policy in the United States. The term premium is the premium investors expect when holding long term bonds instead of short term bonds.

Term premiums have been trending lower since the 1980s. The chart below shows the downtrend since 1981 and the accelerated downtrend the past couple years.

10 Year Treasury Yield and Term Premium

Investors are willing to earn less for holding longer term securities. This is because there is a lower perceived risk in doing so. Expectations are for low inflation for many years to come. As a result, there is less of a risk holding long term bonds. Term premiums on longer-term securities will move higher when investors perceived risk of holding those securities is higher. Don’t count on this happening anytime soon.

Low inflation, low expectations of inflation in the future, and lower perceived risk in holding long term bonds isn’t going to change in the coming years. That being said, low long term interest rates are here to stay for a long, long time.

 
Author: Brian McKay

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Brian McKay launched MonitorBankRates.com in April 2008. MonitorBankRates.com is now one of the leading online personal finance publications and bank rate aggregators.

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