1 Year Certificate of Deposit Rates Remain Stable as Inflation Posts Biggest Drop in 6 Years

U.S. consumer inflation fell by the largest amount in 6 years but that won't change the Federal Reserve's timeline for increasing interest rates. This is good news for certificate of deposit rates and other bank rates, which are expected to move higher sometime in 2015.

The Labor Department reported on Wednesday that its Consumer Price Index (CPI) fell 0.3 percent in November, the largest decline since December 2008. The biggest factor in the decline in the CPI was lower gas prices. Removing food and energy prices from the index, the core CPI edged up 0.1 percent in November. The past 12 months through November, the core CPI rose 1.7 percent, remaining below the Federal Reserve's long term target of 2.00 percent.

The Federal Open Market Committee wraps up their two day meeting today but there is no chance they will announce a change in interest rates. They are expected to remove their language of keeping interest rates low for a "considerable time." This is the final change that will probably take place before they increase the federal funds rate.

The FOMC is expected to increase interest rates sometime in the final two quarters of 2015. Once the FOMC increases the fed funds rate, banks will increase deposit rates. Following are the 1 year certificate of deposit rates for December 17, 2014:

Highest 1 Year Certificate of Deposit Rates

• Bank Direct Rate 1.16% APY 1.17%
• CIT Bank Rate 1.14% APY 1.15%
• Sallie Mae Bank Rate 1.14% APY 1.15%
• My e-BAnC by BAC Florida Bank Rate 1.14% APY 1.15%
• Pentagon Federal Credit Union Rate 1.10% APY 1.11%
• Synchrony Bank Rate 1.09% APY 1.10%
• GE Capital Bank Rate 1.09% APY 1.10%
• California First National Bank 1.09% APY 1.10%
• Colorado Federal Savings Bank 1.09% APY 1.10%
• Ally Bank Rate 1.04% APY 1.05%