CD Rates on 24 Month Certificates of Deposit Averaging 0.42 Percent, Best CD Rate at 1.25%

Regardless of which party wins the election it will be interesting seeing which direction the economy will go in with the financial cliff coming our way. The Fed is doing what it can to get things moving again though in the process is hurting holders of interest bearing assets like certificates of deposit. 24 month CD rates are averaging only 0.42 percent, how can any retiree live off of interest income with rates so low.

The best CD rates on 2 year certificates of deposit are better when compared the national average rate but on its own getting a 1.25 percent return is low. I remember when the highest CD rates on 2 year certificates of deposit were 4 to 5 percent several years ago. These days the highest CD rates on 5 year CD rates are even in the 4 to 5 percent range.

Don't expect these low CD rates at banks to increase in the next several years, some economists are comparing our current economic growth to the lost decade in Japan. In both Japan's case in the 1990's and the United States right now we had a credit bubble which created unrealistic real estate prices which eventually collapsed sending the economy into a deep recession followed by 10 years or more of slow growth and interest rates near zero percent.

Millions of retirees counting on interest income from certificates of deposit are left out in the cold. The Federal Reserve even acknowledged this in the past statement they released on economic policy. Millions of people who believe they were going to retire haven't because their return on investment in risk free assets is so dismal.

The highest bank CD rates right now are from Alostar Bank of Commerce at 1.25 percent with an annual percentage yield of 1.26 percent. The best CD rates on 1 year certificates of deposit are also from the same bank at 1.10 percent with an APY of 1.11 percent. The current national average 1 year bank CD rate is only 0.26 percent so a 1 year rate above 1.00 percent looks good as well.

Feel free to search our CD bank rates list for the highest CD interest rates for certificates of deposit terms ranging from 30 days to 5 years.