Short-term CD rates trending upward?
We just received some positive news from Discover Bank earlier today. They just announced that their 18 month certificate of deposit product will now hold a higher interest rate of 2.25%, up from 2.10% a week earlier. Although this is only a small gain (0.15%) hopefully it is a sign of things to come!
If you’ve been in the market for savings products (particularly FDIC insured ones) lately, then you undoubtedly know that rates have been trending downward since the beginning of 2009. E-Trade, for example, has seen their online savings rate plummet since the beginning of 2009 from 3.01% APY to a mere 0.95% APY. This same pattern currently holds true for many online savings products.
Now for some positive news…
Besides the recent uptick in Discover Bank’s 18 month CD, we wanted to make note of a couple other national institutions with savings rates on the rise (hopefully not just temporarily).
- Umbrella Bank recently saw the interest rate associated with their 1 year CD raise to it’s current level of 2.01% APY, up from 1.98% APY last week. To put this in perspective, the national average for 12 month CD’s is roughly 1.65% APY.
- ShoreBank Direct saw the interest rate on it’s savings account raise from 2.05% APY to 2.15% APY
- EBank saw a pretty substantial jump in their 12 month CD rate (up to 2.20% APY from 2.00% APY last week)
The largest interest rate raises from last week (national banks only) came from UFB Direct and Bank USA whom saw their rates increase by nearly 30 percent!
UFB DIrect’s 12 month CD rate rose from 1.70% APY to 2.00% APY and Bank USA’s 6 month CD rate rose from 1.75% APY to 2.00% APY.
While the environment still looks bleak for deposit investors, atleast their are some positive trends beginning to take place!
