Highest CD Bank Rates This Week: Best 1 Year Rate at 1.10% Best 2 Year Rate at 1.25%
CD rates this well haven't changed much and won't for several more years. Today is the first day of the two day meeting of the Federal Open Market Committee. Recent weak economic news has most economic analysts believing that another round of quantitative easing is just around the corner.
The highest CD rates on 1 year certificates of deposit are at 1.10 percent and the best CD rates on 2 year certificates of deposit are at 1.25 percent this week. The FDIC's national average 1 year CD rate is at 0.26 percent and the national average 2 year CD rate is at 0.43 percent.
If the FOMC doesn't announce more easing right after their meeting, it will just be a matter of time before the Fed acts with more easing. Many analysts also believe that policy of the keeping "exceptionally low interest rates" until the end of 2014 will extend until the end of 2015.
High unemployment and slow growth will keep interest rates low for another three years which also means low bank CD rates and savings rates for the next three years. The yield curve on short term and long term certificates of deposit will also remain flat for the next three years. There is only a 61 basis point difference between average 1 year CD rates and average 5 year CD rates right now.
Thankfully the CD rates at banks for 1 year certificates of deposit are well above the national average rate. We recently had a bank increase 12 month CD interest rates and 24 month CD interest rates. AloStar Bank is the bank that increased rates and now has the highest CD rates on our 1 year and 2 year rates list.
Ally Bank also increased the rates it pays on some of the bank's certificates of deposit. Ally Bank CD bank rates on 1 year certificates of deposit are now in the top 5 CD rates on our list.
Following is a list of the best rates available right now our our certificate of deposit rates lists.
Highest 1 Year CD Rates
Highest 2 Year CD Rates