This Week’s Economic News Will Keep CD Rates and Other Deposit Rates Low
News out this week doesn't bode well for CD rates and other bank deposit rates. At an economic conference in Jackson Hole, Wyoming, Federal Reserve Chairman, Ben Bernanke, said Friday that the FOMC intends to act to help the economy recovery stay on tract. Stopping short of saying more Fed easing to lower interest rates is imminent Ben still used language to suggest the Fed will act sooner than later if growth doesn't pick up.
The Fed's action to lower bond yields and borrowing costs to spur growth as an negative impact on deposit rates. Bank CD rates on 1 year certificates of deposit are averaging a pathetic 0.27 percent in the FDIC's national rate survey. Bankrate's national survey has 1 year CD rates at banks averaging 0.71 percent.
The highest CD rates on 12 month certificates of deposit are many times the FDIC national average and above Bankrate's average. Right now on our 1 year CD interest rates list the best CD rates are above 1.00 percent. The highest CD rate on our list is from two banks, CIT Bank and Bank of Internet. Current CIT Bank CD rates and Bank of Internet CD rates are at 1.09 percent with an APY of 1.10 percent.
Following is a list of the top 10 CD rates on 1 year certificates of deposit:
1 Year CD Rates
Average 2 year CD rates are not much higher than 1 year rates since the rate curve is flat. The current national average 2 year CD rate is at 0.44 percent in the FDIC survey this week. Jumbo CD rates on 24 month certificates of deposit are only averaging 1 basis point higher at 0.45 percent. Below is a list of the highest CD rates on 2 year CD accounts.
2 Year CD Rates
You can search for the highest CD bank rates from many different banks by using our rate lists. We list interest rates for CD terms ranging from 30 days to 60 months.