Two economic reports were released this morning showing that the economy is gaining momentum. This may send CD rates higher sooner than later. These two reports coupled with a stronger than expected April Employment report could force the Fed to increase rates before the summer of 2015.
The number of Americans filing unemployment claims fell to 297,000 for the week ending May 10. Analysts were expecting claims to increase to 320,000. This is the lowest level for claims in over 7 years and brought unemployment claims back to the pre-recession level. The Labor Department also announced its Consumer Price Index increased 0.3 percent last month, which is the largest increase since June 2013.
For the 12 months ending in April, consumer prices have risen 2.0 percent, which is near the target level the Federal Reserve has for long term inflation. If inflation increases to 2.5 percent this year, the Federal Reserve will be forced to increase the federal funds rate sooner than they have forecasted.
Once the Fed increases the fed funds rate, credit unions and banks will increase deposit rates on savings accounts, money market accounts and certificates of deposit. This will be welcome news since we have dealt with record low deposit rates since the recession. The best CD rates on 12 month certificates of deposit are just above 1.00 percent. This is a far cry from the 3 percent to 5 percent rate that most banks offered before the recession.
CD Rate Roundup for May 15, 2014
Best 3 Month CD Rates
Best 6 Month CD Rates
Best 1 Year Bank CD Rates
Best 2 Year CD Rates
Best 3 Year Bank CD Rates
Best 4 Year Rates
Best 5 Year CD Rates
We have a new leader on our 1 year CD rates list, Pentagon Federal Credit Union (PenFed) increased their rate to 1.15 percent with an APY of 1.16 percent. Prior to PenFed increasing their 1 year “money market certificate”, AloStar Bank of Commerce held the top rate at 1.10 percent with an APY of 1.11 percent. Update: PenFed has since lowered their CD Rates.
PenFed has increased all their certificate rates the past month with the biggest increase coming on their 5 year CD when the rate was increased to 3.00 percent. Unfortunately PenFed recently reduced their 5 year rate back down to 2 percent, but even that rate puts them in the top five of our list of 2 year CD rates.
As with any credit union you’ll have to join PenFed to open a certificate account, you also have to be eligible to join, you can see if you’re eligible to join PenFed here: PenFed membership application. If you’re not eligible to join PenFed you can still find the best bank CD rates on our rate table.
Highest 1 Year CD Rates
PenFed and AloStar Bank of Commerce hold the top 2 spots on our 1 year rate list at 1.15 percent and 1.10 percent. The third highest rate on our list is held by two banks. CIT Bank’s 1 year CD rate and GE Capital Retail Bank’s Optimizer Plus 1 year CD rates are currently at 1.04 percent with an APY of 1.05 percent. The minimum opening deposit at both banks to earn that rate is $25,000.
If you don’t have $25,000 to invest in a CD account, you can still get a very good rate on our table. The fourth best 1 year rate on our list is at 1.00 percent with an APY of 1.01 percent. We currently have two banks offering that rate and yield, My e-BAnC by BAC Florida Bank and VirtualBank.
The fifth best 1 year rate on our list is held by three different banks, The Palladian PrivateBank, GE Capital Retail Bank and Colorado Federal Savings Bank. All three banks are currently offering 1 year CD interest rates at 1.00 percent with an APY of 1.00 percent.
Highest 2 Year CD Rates
PenFed and AloStar Bank of Commerce also have the top rates on our 2 year certificate of deposit rate list. PenFed’s current rate is at 1.25 percent and an APY of 1.26 percent. AloStar Bank of Commerce rate is currently at 1.24 percent with an APY of 1.26 percent. Both PenFed and AloStar Bank of Commerce have a minimum opening deposit of $1,000.
The third highest rate on our list this week is from CIT Bank at 1.19 percent with an APY of 1.20 percent. CIT Bank’s minimum opening deposit to earn this rate and yield is $25K. The fourth highest rate this week is from GE Capital Retail Bank and Barclays Bank at 1.14 percent with an APY of 1.15 percent. GE Bank has a minimum opening deposit of $500 and Barclays Banks has no minimum opening deposit.
Highest 3 Year CD Rates
The highest CD rates on our 3 year rate list is also from PenFed, in fact this credit union tops our rate list for CD terms ranging between 1 year and 4 years. PenFed’s 36 month rate is currently at 1.50 percent with an APY of 1.51 percent. The second best rate on our 3 year list is from Intervest National Bank at 1.44 percent with an APY of 1.45 percent. Intervest National Bank’s minimum deposit to earn this rate and yield is $2,500.
Barclays Bank and AloStar Bank of Commerce are offering the third top rate on our list at 1.34 percent with an APY of 1.35 percent. Barclays doesn’t have a minimum opening deposit and AloStar Bank of Commerce’s minimum is $1,000. Salem Five and GE Capital Bank are offering the fourth top rate at 1.29 percent with an APY of 1.30 percent. Salem Five’s minimum opening deposit is $10,000 and GE Bank has a minimum of $500.
Highest 4 Year CD Rates
The best 4 year rate this week is from PenFed at 1.75 percent with an APY of 1.76 percent. The second top 4 year rate is from Nationwide Bank at 1.66 percent with an APY of 1.67 percent. Two Banks, Intervest National Bank and Barclays Bank, are offering the third highest 4 year rate at 1.64 percent with an APY of 1.65 percent.
The fourth highest 4 year rate this week is from EverBank at 1.61 percent with an APY of 1.62 percent. EverBank’s minimum opening deposit to earn this rate and yield is $1,500. The fifth top 4 year CD rate this week is from State Farm Bank at 1.59 percent with an APY of 1.60 percent. The miminum opening deposit to earn this rate and yield at State Farm Bank is $500.
Highest 5 year CD Rates
Barclays Bank currently holds the top spot on our 5 year certificate of deposit rate list with a rate of 2.13 percent and an APY of 2.15 percent. The second best 5 year CD rate this week is from EverBank at 2.10 percent with an APY of 2.12 percent. The third best rate this week at 2.03 percent with an APY of 2.05 percent from State Farm Bank.
The fourth best 5 year rate this week is from PenFed and Virtual Bank at 2.0o percent with an APY of 2.02 percent. Virtual Bank’s minimum opening deposit to earn that rate and yield is $10,000. The fifth top rate this week is from GE Capital Bank at 1.98 percent with an APY of 2.00 percent.
Average bank CD rates continue to drift down slowly as we head into 2014, current average 1 year CD rates are at 0.20 percent in the FDIC’s weekly survey this week. Average 1 year CD interest rates reported by MonitorBankRates.com are much higher this week at 0.73 percent.
The highest CD rates available for 12 month certificates of deposit are also higher than the averages. The highest rate this week in our database of rates is at 1.09 percent with an APY of 1.10 percent. List below are the top CD rates for certificate of deposit terms of 3 months to 2 years.
Highest CD Rates 12/28/13
3 Month Rates
6 Month Rates
9 Month Rates
1 Year Rates
18 month Rates
2 Year Rates
Pentagon Federal Credit Union (PenFed) recently increased their certificate CD rates on several different CD products. The best rate for the term right now is on their 2 year certificate, which has been increased to 1.25 percent with an APY of 1.26 percent. Penfed’s 2 year CD rate is now the highest two year rate in our database.
Besides having the highest 2 year rate, PenFed also has the highest 3 year, 4 year, and 5 year CD rate in our database right now. Penfed’s shorter term CD rates, their 6 month and 12 month rates are not even in the top 5 rates in our database. This is unfortunate because rates are moving higher in the near future and it makes sense to stay invested in shorter term CD accounts.
As with any credit union, you are required to join PenFed to be able to open a certificate account. Joining requires you to open a share savings account with a $5 deposit. PenFed is one of the largest credit unions and is in great financial shape, getting a 4 star rating from Bankrate.
For more information on opening an account visit PenFed.org.
Heading towards the end of September, average CD rates haven’t moved much this month but the highest CD rates available have. Last month the top 1 year bank CD rate was from GE Capital Retail Bank at 1.04 percent with an APY of 1.05 percent. This month the best CD rate on a 1 year certificate of deposit is from E-Loan.com at 1.10 percent with an APY of 1.10 percent.
Average CD rates are mixed this week, 1 and 2 year CD rates are lower while 5 year CD rates are slightly higher. Long term CD rates moving higher doesn’t comes as no surprise since long term bond rates have moved sharply higher the past few months. We won’t see short term bank CD rates and credit union CD rates move higher until the FOMC increases the federal funds rate.
Average CD Rates Mixed This Week
1 year CD rates at banks are averaging 0.68 percent this week, down slightly from last week’s average 1 year CD rate of 0.70 percent. Average 2 year CD rates are at 0.85 percent, down from last week’s average rate of 0.90 percent. 5 year CD rates bucked the downtrend and are averaging 1.38 percent this week, up from the prior week’s average rate of 1.36 percent.
5 year Bond Rates Up for 2013 but Down Sharply in September
During the first three quarters of 2013, 5 year bond rates more than doubled. Back on January 2nd, 5 year rates averaged 0.76 percent and at the highest point this year which was on September 5, 5 year bond rates averaged 1.85 percent. 5 year rates have come down significantly this month, down to 1.48 percent.
5 year CD rates moved higher in 2013 but the increase in rates was nowhere near the increase in 5 year bond rates. Over the past few months, some banks have increased 5 year CD rates around 50 basis points.
Long term bond rates came down this month on news that the Federal Open Market Committee won’t start tapering their purchases which have kept a lid on long term rates. The FOMC has been buying $45 billion a month in long term bonds and $40 billion a month in mortgage-backed securities, both policies were designed to force long term interest rates lower.
Top CD Rates for September 2013
Below is a list of the top short term and long term certificate of deposit rates for the month of September:
CD Rate Curve is Flat
As you can see, there isn’t much difference between short term and long term CD rates. The CD rate curve is flat and has been that way for years now because the FOMC lowered the federal funds rate to zero percent back in December 2008. 5 year CD interest rates have increased the past few months but shorter term rates really haven’t moved much higher at all.
Best CD Rate Deal is on 6 Month Certificates of Deposit
The best CD rate for the certificate of deposit term right now is Zion Direct’s 6 month CD rate of 1.00 percent. Zion Direct’s 6 month rate tops most 12 month rates right now. Another positive point in investing in a short term certificate of deposit is that once the account matures, rates will probably be higher than current levels.
While we are seeing some banks and credit unions increase longer term CD rates, shorter term CD rates haven’t moved at all this week. The increases have been small in long term CD interest rates and nothing like the increase in long-term bond yields the past few months. Bond yields of 5 years and longer moved higher recently with the largest increases coming in bond terms of 10 years or longer.
The best CD rates on 5 year certificates of deposit this week are still above 2.00 percent. In fact, we have another bank who recently increased their 5 year rates above 2.00 percent. iGOBanking and EverBank are the two banks offering 5 year rates above 2.00 percent on Monitor Bank Rates, which is considerably higher than the average 5 year CD rate of 1.34 percent.
Best 5 Year CD Rates
As you can see, the 5 banks offering the best CD rates on 5 year certificates of deposit are all offering rates well above the average rate as reported here at Monitor Bank Rates. These rates are also well above the FDIC average rate this week of a paltry 0.74 percent.
Moving onto the highest CD rates for 4 year certificates of deposit, we see the highest rate is from also from EverBank at 1.60 percent with an APY of 1.61 percent. The current average 4 year CD rate in the FDIC’s National Rate and Rate Cap survey this week is at 0.57 percent.
Highest CD Rates 4 Year CDs
3 year CD rates have also been stable the past several months, no big moves in rates banks are offering. The highest 3 year rate in our database this week is from Intervest National Bank at 1.39 percent with an APY of 1.40 percent. This rate is more than 3 times the FDIC’s current national average this week of 0.45 percent.
Best CD Rates 3 Year CDs
The highest CD rates on 2 year certificates of deposit are also many times the FDIC average and higher than the 2 year rate average reported by Monitor Bank Rates. The highest 2 year rate this week is from two banks at 1.14 percent with an APY of 1.15 percent. The average 2 year rate reported by us this week is at 0.84 percent and the average 2 year rate reported by the FDIC is at 0.33 percent.
Top CD Rates 2 Year CDs
Average 1 year CD rates reported by us are at 0.67 percent this week and the average 1 year CD rate in the FDIC’s survey this week is one third of that at 0.20 percent. The best CD rates in our database for 1 year certificates of deposit are much higher at 1.04 percent with an APY of 1.05 percent. The bank offering that rate and yield is GE Capital Retail Bank.
1 Year CD Rates
Atlanta Postal Credit Union, one of the oldest credit unions in the country, is still offering competitive CD rates for their members. As with any credit union, you will have to join Atlanta Postal Credit Union to open a certificate account. You also have to be eligible to join. To view APCU’s membership requirements, click here: APCU Membership Info.
APCU is offering certificate terms ranging from 91 days to 5 years. The best rate they’re offering is for their 12 month CD. Their current CD rates on 12 month certificates at are 0.846 percent with an APY of 0.85 percent. While that isn’t the highest 12 month credit union CD rate available, APCU’s rate is on the higher end of rates available. This rate is available for both regular CD accounts and IRA CD accounts.
The shortest term certificate, 91 days, also has a very competitive rate. The current 91 day CD rate is at 0.499 percent with an APY of 0.50 percent. That rate beats the best 3 month bank CD rate in our rate database by 3 basis points. That rate is also much higher than the Federal Deposit Insurance Corporation’s national average 3 month CD rate of 0.08 percent and higher than the National Credit Union Administration’s All CU’s average 3 month rate of 0.20 percent.
APCU’s certificate rates are higher than all the average rates from the FDIC and NCUA. You can compare this credit union’s CD rates with the averages below.
CD Rates from Atlanta Postal Credit Union
National Credit Union Administration Average CD Rates
Federal Deposit Insurance Corporation Average CD Rates
APCU is one of the larger credit unions with over $2 billion in assets and almost 100,000 members. You can view APCU’s financial information, membership information and contact information below:
APCU Address and Contact Information
3900 Crown Road
CD interest rates change constantly. To view a current list of Atlanta Postal Credit Union CD Rates, click here: APCU CD Rates. If you are unable to join APCU you can view a list of credit union and bank CD rates here at MonitorBankRates.com.
CD rates have remained stable over the past month as 10 year U.S. Treasury yields have fallen almost 15 percent over the past month. 12 month CD rates at banks are averaging 0.63 percent this week, up slightly from last week’s average 12 month CD rate of 0.60 percent. Last month at this time average 1 year bank CD rates were around 0.65 percent.
During the same time last month, 10 year U.S. Treasury yields moved above 2.00 percent after a strong employment report was released. Today 10 year Treasury yields are averaging 1.78 percent, a 27 basis point decline in a month. If yields continue to decline we also expect deposit rates to decline.
Currently in our database of 1 year certificates of deposit the best CD rates are from GE Capital Retail Bank at 1.04 percent with an annual percentage yield (APY) of 1.05 percent. We also have other banks offering 1 year rates well above the national average including OneWest Bank and Home Savings Bank both offering 1 year rates at 1.00 percent with an APY of 1.00 percent.
Other bank CD rates that are really good deals right now include Doral Bank Direct offering a 6 month CD rate at 0.88 percent with an APY of 0.88 percent. Doral Bank Direct’s 6 month rate is higher than most 12 month CD bank rates available right now. The FDIC national average 6 month CD rate this week is much lower at 0.13 percent.
Below is a list of the top CD rates for all the certificate of deposit terms in our rate database this week:
Lock in a 12 month CD rate now before rates move lower in 2013? Yes, unfortunately that is the case, already low bank and credit union CD rates are expected to move lower in 2013 so you should lock in a rate now. We believe CD interest rates are moving lower in 2013 but will move higher by 2015. That is, mind you, if Congress can get their act together regarding the fiscal cliff problems they created.
Rates may actually move higher in 2014 if the economy grows quicker than expected but that is unlikely. Right now the best CD rates on 1 year certificates of deposit are at 1.04 percent with an APY of 1.05 percent. Average CD rates at banks in the FDIC’s National Rate and Rate Caps Survey are considerably less this week at 0.23 percent.
Late in 2012, some banks already lowered the rates they pay on shorter term certificates of deposit. On our rate list the top CD rate on 1 year CD accounts used to be held by five different banks – now only two banks are tied with the highest rate at 1.04 percent. You could get a higher rate on a longer term CD investment like a 2 year CD but rates are only marginally better.
The best 2 year CD rates are at 1.19 percent with an APY of 1.20 percent, only 15 basis points higher than 1 year rates. I recommend staying in shorter term CDs, like 6 months (best 6 month rate at 0.90%) or 12 months. That way you can be in a position take advantage of higher rates right away when they finally do move higher.
Below is a list of the top CD rates for the last week of January 2013:
Savannah Federal Credit Union, based in Savannah, Georgia, is offering certificate (CD) accounts that have tiered CD rates. The three tired certificate accounts include regular certificate accounts with balances below $5,000, regular certificate accounts with balances of $5,000 or more and jumbo certificate accounts with balances of $100,000 or more.
Savannah Federal Credit Union’s rates are competitive and better than the FDIC’s national average rates. Naturally the best CD rates are for jumbo accounts of $100,000 or more. Certificate terms range between 3 months and 60 months for accounts of less than $5,000 and accounts of $5,000 and higher have CD terms of 6 months through 60 months.
Savannah Federal Credit Union was founded in 1931 and is a not-for-profit cooperative financial institution owned by their members. Deposits are federally insured for up to $250,000 by the National Credit Union Administration. As a credit union, you are required to join Savannah Federal Credit Union in order to open a certificate account.
Membership at Savannah FCU is open to federal employees in Chatham, Bryan, Effingham, and Liberty Counties in Georgia and Jasper and Hampton Counties in South Carolina as well as to the faculty and staff of Armstrong Atlantic State University, faculty and staff of Savannah College of Art and Design, employees of Sullivan’s Administrative Managers, and employees of Telfair Museum of Art and their family members.
Joining requires you to request membership. When the credit union receives your request, they will send you a membership packet which will include a membership application and any pertinent credit union disclosure information.
Post Office Box 8122
124 Barnard St. Room B 110,
Membership Information and Financial Information
Current Certificate (CD) Rates
Term Rate APY
$5,000 or Above
Jumbo ($100,000 or Above)
You can easily compare how this credit union’s certificate (CD) rates compare with the highest CD rates on bank certificates of deposit by using our rate tables below.
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