Generally, certificate of deposit (CD) rates continued to improve in May, however there was a small dip in the national rate average for 5-year CDs. It’s most likely to rebound in the coming months considering that banks are still making every effort to make their long-lasting CD rates competitive.
National CD rate averages for shorter-terms (6-month and 12-month) did not experience any changes while the rate averages for 24-, 36- and 48-month terms are rising. The 60-month CD term national rate average fell just 0.01 % APY.
The nominal decrease was due to a major rate cut by iGObanking.com, which reduced the 60-month CD rate from 2.15 % APY to 0.35 % APY. However, numerous online banks – such as GE Capital Bank, CIT Bank and Sallie Mae Bank – have actually enhanced their 5-year CD rates in Could.
Currently, the leading nationwide 5-year CD rate on a $10,000 balance is 2.25 % APY from 4 online banks (GE Capital Bank, Synchrony Bank, Barclays Bank and CIT Bank).
Although the stable enhancement in CD rates aligns with an improving economy, savers may want to avoid locking in their money cost savings in a CD. Given that deposit rates still have plenty of space to grow, cash that’s dedicated to a CD will wind up earning less than the market rate.
In the meantime, you may choose to just keeping money in a liquid high-yield cost savings account or in a short-term CD. Those who’re more risk-tolerant could invest their extra money in the stock exchange.
The table below programs the modifications in national averages for CD rates from April 30, 2014 to May 31, 2014. The figures are based upon the data gotten from banks that are tracked by MyBankTracker.
|CD Term||APY (as of 4/30/14)||APY (as of 5/31/14)||APY Change|
To see the current leading CD rates, use the widget below:
Latest National CD Fees Averages Alert: Might 2014