While we would always want to view the glass as half-full rather than half-empty, when it comes to CD rates, it would be difficult to maintain all that optimism if there are clear signals indicating that a steady and consistent rise in interest rates is still a long way off.
There were some modest improvements in the rate averages last week but for this week, the roundup of CD rate averages reflects a trend that’s heading more towards the downward direction rather than the increase in yields that are long overdue for bank depositors.
6-months and 12-month CDs
The highest rate cuts for this week are for the 6-month and 12-month CDs, with both CD terms falling sharply, going down by 0.04% and 0.02% respectively. While a single basis point decrease may not be all that conclusive of a downward trend, the higher percentage of negative change for these two CD terms show that more banks have decided to slash rates the past few days.
36-months and 48-month CDs
The 36-month and 48-month CDs also experienced some setbacks, although the CD rate drops were only by 0.02% and 0.01% respectively.
24-month and 60-month CDs
These two CD terms held their own this week, their average rates even managing to increase slightly, the 24-month CD by 0.01% and the 60-month national rate average stays the same.
Long List of Rate Cuts
Many banks made the decision to implement CD rate cuts this week, and for a lot of them, the reduction in interest rates was made for most short-term and long-term CDs. Here’s a rundown of the CD rate drops for this week which contributed to the dismal CD averages today:
Banks CD Term From To Change
HSBC Direct 6-month 1.25 1.10 -0.15
9-month 1.35 1.15 -0.20
12-month 2.00 1.85 -0.15
18-month 1.60 1.50 -0.10
Citibank 18-month 2.00 1.75 -0.25
Bank of America 3-month 0.50 0.45 -0.05
6-month 0.55 0.50 -0.05
9-month 0.55 0.50 -0.05
24-month 2.20 2.15 -0.05
Ascencia 36-month 3.00 2.27 -0.73
Most notable among the decrease in CD rates are those made by two banks which often top our best CD rates list:
- OneWest Bank slashed its very enticing 10-month CD deal from a high of 2.10% to 1.76% APY; and
- Ascencia dropped its 36-month CD by a whooping 0.73%, from 3.00% to 2.27% APY.
Let’s wait and see what the following week will bring for savers across the country. For a complete list of nationally-available CD rates and more information on CDs in general, check out our CD pages.