In September, the national rate averages for certificates of deposits (CDs) did not budge for the most part. The lack of movement is likely due to the heightened speculation of a tapering announcement regarding the Federal Reserve’s bond-buying program. However, the central bank didn’t make such an announcement.
As uncertainty looms over what the Fed wants to do with interest rates, many banks appear hesitant to change rates, whether for better or for worse. The Fed continues to aim for a 6.5 percent unemployment rate, at which point interest-rate hikes will be considered.
The current unemployment rate stands at 7.3 percent and Fed bankers project the target rate won’t be reached until 2015.
Over the past month, only the rate average for 60-month CDs saw a slight uptick of 0.01% APY. The nominal increase resulted from rate hikes on 60-month CDs from E-Loan and EverBank. E-Loan boosted its rate from 1.40% APY to 1.60% APY while EverBank raised its rate from 1.86% APY to 2.05% APY.
Currently, the top nationwide 1-year CD rate of 1.10% APY is available from E-Loan, but the minimum deposit requirement is $10,000. The best nationwide 5-year CD rate is held by EverBank at 2.05% APY, with a $1,500 minimum deposit requirement.
Without a good idea on where rates are headed in the near future, savers may find it difficult to decide on what they should do with extra savings that they want to put into a CD. The constant possibility of rising rates may dissuade savers from CDs, but 1-year CDs are still great for growing your money outside of a typical savings account. Meanwhile, consider bump-up CDs, which provide a one-time rate increase by request of the depositor.
The table below shows the changes in the national averages for CD rates from Aug. 30, 2013 to Sept. 30, 2013. The figures are based on the data acquired from banks that are tracked by MyBankTracker.
|CD Term||APY (as of 8/30/13)||APY (as of 9/30/13)||APY Change|
To compare today’s top CD rates, use the widget below: