High Yield CD Rates

Like standard CDs, even high yield CD rates are so low that a lot of savers who can afford to take on a small amount of risk are asking financial advisers to invest some portion of their maturing CD money in other fixed income products. Exactly a year ago, the average rate of a 3 month high yield CD was 1.98% and the 6 month CD average was 2.54%. Now, a year later, the average 3 month CD is only 0.75% while the average 6 month CD is 1.15%. The following are the nationally available high yield CD rates of some banks using the 1 year CD term.

Ascencia, a division of PBI Bank, has an interest rate of 1.89% with an APY of 1.91%. Minimum opening deposit is $500. State Bank of India has an interest rate of 1.85% with an APY of 1.86%. Minimum opening deposit is $5000. Fortune Bank has an interest rate of 1.84% with an APY of 1.85%. Minimum opening deposit is $1000. NewDominionDirect.com has an interest rate of 1.80% with an APY of 1.82%. Minimum opening deposit is $3000. Nationwide Bank has an interest rate of 1.78% with an APY of 1.80%. The minimum opening deposit is $500. Colorado Federal Savings Bank has an interest rate of 1.78% with an APY of 1.80%. The minimum opening deposit is $5000. Direct Discover Bank has an interest rate of 1.73% with an APY of 1.75%. The minimum opening deposit is $2,500. Ally Bank has an interest rate of 1.73% with an APY of 1.74%. No minimum opening deposit. Aurora Bank FSB has an interest rate of 1.65% with an APY of 1.66%. The minimum opening deposit is $1000. American Express Bank FSB has an interest rate of 1.49% with an APY of 1.50%. There is no minimum deposit.

Savers should probably not look for the bank CD rates scenario to change considerably in the first several months of the current year. The Federal Reserve apparently sees no need to raise interest rates that may affect high yield CD rates to calm inflation.

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