CD Rate Changes The Past Week – All CD Rates Increased
This past week brought more CD rate changes that were once again positive. Five different banks changed CD Rates on 24 certificate of deposit terms and all the increases were higher. Over the past year, the best 1 year CD rates have just about doubled in price to around 2.50 percent.
We anticipate banks increasing CD rates even more this year and next. CD rates are moving higher because the Federal Reserve is putting upward pressure on rates by increasing the federal funds rate. The Fed is widely expected to increase the rate again during their upcoming September meeting, according to the CME's FedWatch Tool.
Another 25 basis point increase in September would put the fed funds rate in a targeted range of 2.00 percent to 2.25 percent. Beside the September meeting, the Fed has two more scheduled meetings this year. The CME FedWatch Tool currently puts the change of an increase during the Fed's December meeting at 60.6 percent.
By the end of September, the highest 12 month CD rates will move into the 2.75 percent range. By the end of 2018, the highest 12 month CD rates will move towards 3.00 percent.
CD Rate Changes The Past Week
TIAA Bank had the most changes by increasing CD rates on 16 different CD products. Banesco USA had the largest increase at 25 basis points. Listed below are all the CD rate changes.
TIAA Bank CD Rate Changes
All CD term increases were for regular and jumbo CD rates.
Banesco USA CD Rate Change
Discover Bank CD Rate Changes
CD term increases were for regular and jumbo CD rates
Limelight Bank CD Rate Changes