Brand New High for 12 Month CD Rates in 2017

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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
December 6th, 2017