bank rates

Highest CD Rates Roundup For Nov. 8

Bringing you the very best CD rates from credit unions and local banks.Here we go again.

Looks like some folks at the Federal Reserve are plotting — again — to delay — again — increasing the key short-term interest rates that impact how much you earn from certificates of deposit and savings accounts.

In a research paper released this week, the head of the Fed’s monetary affairs division advocates for changing the threshold at which the Fed would consider a rate increase from 6.5% unemployment to 5.5% unemployment.

For point of reference, unemployment today stands at 7.3%, according to October data released Friday by the Labor Department.

The Wall Street Journal has the story on the research paper:

“The paper lays out a range of scenarios that show short-term rates not rising until late 2015 but suggests an ‘optimal’ policy might keep rates near zero as late as 2017. ‘Reducing the unemployment threshold improves measured economic performance,’ the paper argues.

“Fed officials have been discussing for several months whether to lower the unemployment threshold as a way to convince markets that they will keep short-term interest rates low for a long time.”

The Journal cautions the paper doesn’t smell “an imminent shift in policy” and mentions some Fed officials are skeptical of changing the threshold.

That’s due in part to the Fed’s credibility problem, which its own members have mentioned.

If you keep moving the goal posts, nobody is going to believe a word you say. I think we’re nearing that point.

Highest CD Rates

The best nationally available CD rates remained stable this week with no rate changes at the top. We did see a couple of banks tie the best deal.

iGObanking, the online division of Flushing Savings Bank in New York, raised its 24-month CD rate to 1.20% APY, tying three other banks on our CD Rates Leaderboard. And CIT Bank, which serves as a lender to small businesses and middle-market companies, increased its 12-month CD rate to 1.05% APY, placing it in a tie with three other banks, as well.

As for the highest CD rates from credit unions and local banks, this week we added two deals to our list:

  • NEFCU in New York (www.mynefcu.org) pays 1.25% APY on 20-month CD rates with a $1,000 minimum deposit of new money. Should interest rates rise, you can bump up the yield on this CD once. Credit union membership is open to those to live, work, worship, attend school or regularly conduct business on the Long Island counties of Nassau or Suffolk, with the exception of East Hampton, Southampton and Shelter Island.
  • Regal Financial Bank in Seattle (www.regalfinancialbank.com) pays 1.11% APY on 11-month CD rates with at $25,000 deposit of new money. You have to be a resident of Washington State to buy this certificate of deposit, but you can do so by mail or in person.

We saw just two rate changes on our list.

LOMTO Federal Credit Union in New York raised its 36-month CD rate from 1.55% APY to 1.60% APY and its 24-month CD rate from 1.40% APY to 1.45% APY. And Superior National Bank & Trust in Michigan has ended its 37-month CD special and has been removed from our list.

You’ll find the top-paying deals clearly marked on our highest CD rates page, showing where they are available, with a quick link back to the original post, which includes more information on the institution and its requirements.

We’ll update this page weekly, so you’ll always know what great deals are out there from credit unions and local banks.

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