Strong Monthly Job Numbers Could Send CD Rates Higher in 2014

We could see higher CD rates in 2014 if the strong job numbers we saw in April's employment report continue in the coming months. Higher monthly job creations and a lower unemployment rate will force the Federal Open Market Committee (FOMC) to increase the federal funds rate. A higher federal funds rate will force banks and credit unions to increase CD rates.

Long term CD rates have already started moving higher as financial institutions try to get ahead of the curve and lock savers in with low rates. Don't be enticed to lock into a higher long term rate right now, you'll regret the move in the next couple of years when rates move higher.

Average 2 year bank CD increased to 1.06 percent this week, up from the previous week's average 2 year CD rate of 1.03 percent. 5 year CD rates are also higher this week averaging 1.72 percent, up 13 basis points from last week's average 5 year rate of 1.59 percent. 1 Year CD rates were lower this week averaging 0.87 percent, down from last week's average 1 year rate of 0.90 percent.

The best CD rates in our 1 year certificates of deposit rate database remain unchanged at 1.06 percent with an APY of 1.07 percent. Virtual Bank is offering that rate and yield on deposits of $10,000 or more. If you don't have $10k to invest in a CD account, we have other banks offering CD rates just below Virtual Bank's rate with a much lower minimum deposit.

Listed below are the best CD rates on 1 year certificates of deposit. We recommend staying invested in shorter term CDs because CD rates will be increasing sometime in the next 12 to 18 months.

Best 1 Year CD Rates