Top Bank CD Rates Across the United States This Week
2012 marks another year of extremely low CD rates on all types of certificates of deposit. The CD rate curve going from 1 month to 60 month bank CD rates is basically flat and rates on all types of certificates of deposit won't be going higher in 2013. In fact, rates will stay low for at least two more years and probably three years more.
Right now the best CD rates at banks on 1 year certificates of deposit are at 1.04 percent with an APY of 1.05 percent, a far cry from a few years ago when you could find 1 year CD rates above 3.00 percent on average. These days the average 12 month certificate of deposit rate in the FDIC's week's average survey is at a measly 0.25 percent! You can't even keep up with the inflation rate if you invest in a certificate of deposit with a rate of 0.25 percent, you might as well place your money under a mattress.
Going out longer term on the certificate of deposit rate curve two year CD rates are only slightly higher than 1 year rates. Right now the highest CD rates on 24 month certificates of deposit are at 1.19 percent with an APY of 1.20 percent, only 15 basis points above the best 12 month CD rates. The average 24 month CD rate in the FDIC rate survey this week is considerably less at 0.38 percent.
The average 36 month certificate of deposit rate in the FDIC's survey this week is at 0.52 percent. Average jumbo CD rates on 3 year jumbo CD accounts are only 2 basis points higher. In fact, jumbo rates on all types of CD accounts are only about 1 to 2 basis points higher than regular CD accounts.
As with 12 month and 24 month rates the best 36 month rates are many times the national average rates. Right now the highest CD interest rate on 36 month certificates of deposit are much higher at 1.30 percent with an APY of 1.31 percent. Going out even longer on the rate curve doesn't really get you that higher of a rate on your deposit.
The current national average 60 month certificate of deposit rate is at 0.84 percent this week. The best 5 year CD rates on our rate list are higher at 1.78 percent with an APY of 1.80 percent. Since rates are low on all CD terms I would stick with investing in shorter term certificates of deposit, like 1 year to 2 year CDs. That way you can take advantage of higher rates when they return sometime in 2015 or 2016.
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