Top 1 Year CD Rate Now at 1.35 Percent
Banks continue to increase CD rates even before the Federal Reserve increases the federal funds rate. The highest 1 year CD rate in our database is now at 1.34 percent with an APY of 1.35 percent. Last month, the highest rate available was at 1.40 percent. That rate was a promotional rate from Live Oak Bank that ended on April 30. The current average 1 year CD rate is much lower at 0.98 percent.
Bank CD rates are moving higher, but the increases are small, and will be small until the Fed increases the fed funds rate. At the beginning of 2015, the best 1 year rate was from Bank Direct at 1.16 percent with an APY of 1.17 percent. As you can see, the highest 1 year CD rate in the database has increased 18 basis points the past 4 months.
It won't be long before the fed funds rate is increased and that increase send deposit rates higher. The current fed funds rate has been near zero percent since December 2008. We anticipate an increase in the rate will come either during next month's Fed meeting or during the September meeting.
The key factor that will decide whether or not the rate is increase will be job growth in May. The job's number will be released a few weeks before the June meeting. A really strong jobs report might force the fed to increase the rate 25 basis points. A weaker than expected jobs report will force the Fed to wait a few more months.
CD rates are moving higher in later this year, therefore you should stay invested in shorter term CD accounts. The best short term CD deal in our database is from MyCBB Bank. The bank is currently offering a 2 month CD rate at 0.80 percent, a rate that is higher than most 1 year rates available.
Listed below are the highest short term certificate of deposit rates for May 11, 2015.
1 Month CD Rates
2 Month CD Rates
3 Month CD Rates
6 Month CD Rates
9 Month CD Rates
1 Year CD Rates and APY
You can always search our database for a list of the most current CD rates: Current CD Rates
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