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Highest Short Term CD Rates: Best 2 Month CD Rate at 0.80 Percent

By now you must have heard the news that the Federal Reserve will increase their key-benchmark interest rate in 2015. When the federal funds rate is increased, CD rates and other bank rates will also increase. Higher rates is good news but you should position your CD investments for higher rates.

If you have any certificate of deposit accounts maturing over the next 6 months you should invest in shorter term CDs. This is especially true for long term CD accounts maturing, most banks will automatically roll over your CD into another long term CD.

So pay attention to the maturity dates, the last thing you want to do is lock into another 5 year CD at 2.50 percent. You'll have to either watch rates move above the low rate you locked-in or pay an early withdrawal penalty. By the end of 2015, or by early 2016, 1 year CD rates will probably be at 2.50 percent.

I'm keeping my new CD investments in CD terms of 3 months or less until CD rates top out. When this cycle of higher interest rates starts, it will probably last for at least 3 years or more, depending on economic growth. By 2018 we could see 1 year bank CD rates around 5.00 percent. The last time 1 year rates were that high was right before the financial crisis in 2007 and 2008.

The best short term CD rate in our rate database is from MyCBB Bank. This bank is currently offering a 2 month CD rate at 0.80 percent. To give you a little perspective on how good that rate is, the second highest 2 month rate in our database is much lower at 0.15 percent.

MyCBB Bank's 2 month rate is higher than the best 3 month rate in our database. The best 3 month rate in our database is at 0.60 percent from California First National Bank. In fact, 0.80 percent for a 2 month CD beats many 1 year CD rates available.

You can view all the top certificate of deposit rates in the database below. Again, I would recommend staying invested in shorter term CDs right now so you can take advantage of higher rates when they do finally arrive.

1 Month CD Interest Rates

  1. Lone Star Bank 0.15% Yield 0.15%

  2. Virtual Bank 0.15% Yield 0.15%

2 Month CD Rates at Banks

  1. MyCBB 0.80% Yield 0.80%

  2. E-LOAN 0.16% Yield 0.16%

  3. Lone Star Bank 0.15% Yield 0.15%

  4. Virtual Bank 0.15% Yield 0.15

3 Month Bank CD Rates

  1. California First National Bank 0.60% Yield 0.60%

  2. First Internet Bank of Indiana 0.45% Yield 0.45%

  3. AloStar Bank of Commerce 0.40% Yield 0.40%

  4. Goldwater Bank 0.40% Yield 0.40%

  5. VirtualBank 0.40% Yield 0.40%

6 Month CD Rates

  1. Zions Direct 1.00% Yield 1.00%

  2. California First National Bank 0.95% Yield 0.95%

  3. Pentagon Federal Credit Union 0.81% Yield 0.81%

  4. My e-BAnC by BAC Florida Bank 0.80% Yield 0.80%

  5. Silvergate Bank 0.75% Yield 0.75%

Top CD Rates 9 Month CDs

  1. NewDominion Bank 0.80% Yield 0.90%

  2. AloStar Bank of Commerce 0.80% Yield 0.80%

  3. Discover Bank  0.70% Yield 0.70%

  4. VirtualBank 0.70% Yield 0.70%

  5. 0.70% APYYield 0.70%

1 Year CD Rates

  1. Colorado FSB 1.34% APY 1.35%

  2. Pentagon FCU 1.30% APY 1.31%

  3. Synchrony Bank 1.22% APY 1.23%

  4. Bank Direct 1.20% APY 1.21%

  5. My e-BAnC by BAC Florida Bank 1.19% APY 1.20%

  6. Home Savings Bank 1.19% APY 1.20%

  7. California First National Bank 1.15% APY 1.16%

  8. VirtualBank 1.15% APY 1.16%


Author: Brian McKay
May 18th, 2015