bank rates

CD Rates Now Rising In Every Term

percent signA few weeks back we wrote about how the average 5-year CD was at its highest rate of 2014. Well, that typical yield has continued to climb, and not just for long-term certificates of deposit.

Average yields this week either tied or exceeded their 2014 highs in every term we track.

As we warned last month, these returns are still nothing to get excited about. But just two months ago we wrote about how CD rates had all but frozen in place for a full year.

So this is definitely progress. Slow progress, but progress nonetheless.

Here’s what we’re seeing, according to Bankrate’s latest national survey of banks and thrifts:

  • 3-month CD rates rose to 0.11% APY. The average rate for this term last was this high on June 5, 2013.
  • 6-month CD rates held at 0.15% APY for the 15th consecutive week. This term’s rate has not been higher in 2014.
  • 12-month CD rates held at 0.26% APY for the second consecutive week. Prior to Sept. 24, the average rate for this term last was this high on April 3, 2013.
  • 24-month CD rates held at 0.39% APY for the second consecutive week. Prior to Sept. 24, the average rate for this term last was this high on May 8, 2013.
  • 36-month CD rates rose to 0.53% APY this week. The average rate in this term was last this high on Feb. 13, 2013 – more than 1½ years ago.
  • 60-month CD rates rose to 0.84% APY this week. The average rate in this term was last this high on March 6, 2013 – again, well more than a year ago.

Again, we have a long way to go to respectability. But it’s clear – as it has been for long-term CD rates for some time – that yields have hit the bottom and are starting to recover in every term.

We’ve seen that on our CD Rates Leaderboard as well, with the best nationally available deal paying more today in every term (except 3-month CDs) than they were just two months ago.

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