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Average CD Rates Move Higher for Short and Long Term Certificates of Deposit

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Average CD rates across are higher this week over last as banks increase rates to attract deposits. Banks have an incentive to lock in deposits at lower rates now before CD rates move sharply higher in the coming years. Average rates on certificates of deposit with terms of 3 months to 5 years moved higher.

The increase in average rates were marginal but nonetheless higher this week over last. Any big increase in rates will come when the Federal Reserve starts increasing the federal funds rate. The Fed isn't expected to tighten monetary policy by increasing the fed funds rate until sometime in 2015.

3 month CD rates are averaging 0.23 percent this week, an increase from last week's average 3 month rate of 0.21 percent. The best CD rates on 3 month certificates of deposit are almost double the average rate at 0.45 percent.

The average 6 month CD rate this week is at 0.52 percent, up from the previous week's average 6 month rate of 0.49 percent. The highest CD rates on 6 month certificates of deposit on the rate table are at 1.00 percent.

1 year bank CD rates are averaging 0.90 percent this week, up from the prior week's average 1 year rate of 0.85 percent. The best 1 year CD rates on the table this week are at 1.09 percent with an APY of 1.10 percent.

2 year CD interest rates this week are averaging 1.09 percent, an increase from last week's average 2 year rate of 1.03 percent. The highest 2 year rates this week are at 1.25 percent with an APY of 1.26 percent.

5 year rates are averaging 1.74 percent this week, up from last week's average 5 year rate of 1.68 percent. The top 5 year rates available are at 2.27 percent with an APY of 2.30 percent.

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Author: Brian McKay
July 8th, 2014