CD Rates Report – Feb. 4: National Averages Drop as Leaders Cut CD Rates

Simon Zhen

Updated on Tue Feb 17, 2015

February started in a slump for national CD rates averages. Last week’s Federal Reserve meeting may have contributed to consistently disappointing savings interest rates, even leading CD rates from Discover Bank and Ascencia have fallen recently.

In January, national CD rates averages started off neutral but began to fall as the month came to an end, likely the result of speculations of the Fed’s meeting announcements. The Fed’s decision was to keep interest rates unchanged near zero.

Top players that have slashed CD rates include Bank of Internet, Everbank, Discover Bank, and Ascencia.

Discover Bank, Ascencia Cuts CD Rates

Discover Bank has been consistently offering competitive rates on all their deposit savings accounts until it recently dropped rates across the board. With the lowered CD rates, returns from Discover CD products have fallen below that of rival Ally Bank. One distinct offering from Discover Bank is the IRA CD product, which remains attractive despite the rate decreases.

Ascencia has been offering some of the highest CD rates on short terms. The online division of PBI Bank followed the industry-wide rates cuts with some of its own. Today, Ascencia’s leading 12-Month CD fell from 1.35% APY to 1.30% APY. Also, its 6-Month CD is now paying 1.06% APY and 24-Month CD is paying a disappointing 1.35% APY.

This Week’s CD Rates Change

Last week, national CD rates averages fell an average of nearly 0.02% APY. Although the drop has slowed down, CD rates continue to fall.

The table below shows the weekly change of the national daily averages for CD rates from January 28, 2011 to February 4, 2011. The figures are based on data acquired from banks that are tracked here on

CD TermLast week's APY (as of 1/28/11)This week's APY (as of 2/4/11)APY Change
12-Month0.74%0.72%- 0.02%
24-Month1.04%1.03%- 0.01%
36-Month1.37%1.36%- 0.01%
48-Month1.65%1.64%- 0.01%
60-Month2.04%2.03%- 0.01%

If you would like to find out more about your bank’s CD rates or compare them with other products, visit the CD rates page.


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