The best CD rates going into 2015 are looking marginally better than they did at the onset of 2014.  This headline is not likely to cause a rush of new funds flowing into bank CDs; however with the interest rate market turned on its head during the first week of January 2014, the top performing CD rates are looking mighty attractive.

Market turmoil in 2015 has pushed the ten year Treasury bond down to 1.97 percent at the close of business today (January 6, 2015).  In contrast, the top yielding five year CDs rates available nationally have an average yield of 2.22 percent.  In fact, rate shoppers can choose any one of the CD accounts listed on the five year CD rate table and beat the return offered by ten Treasury bond since all ten of the top yielding five year bank CDs currently have an Annual Percentage Yield over 2.00 percent.

The only downside to CD investing over bond investing is liquidity.  Treasury bonds can be traded or sold on the open market at anytime once they are acquired.  Certificates of deposit may be redeemed early or prior to maturity but the account holder will incur an early withdrawal penalty for that privilege. 

Bond investors should be aware that there are costs for selling bonds prior to maturity and investors that sell their bonds prior to maturity because interest rates are rising will most likely eat a loss on the principal value of the bond.

Savers and investors on the quest for higher yields with improved liquidity can look to shorter term certificates rather than the longer maturities.  The top one year CDs have an average rate of 1.141 percent based on the most recent survey of bank CD rates conducted by SelectCDrates.con on January 2nd, 2015.  Earning rates of return at just over one percent is not going to produce the next Warren Buffet but these rates are soaring above comparable term Treasury securities.  The one year Treasury rate as of January 6th is a dismal 0.25 percent.  It takes a run along the yield curve on up to a three year term to find a Treasury note that has an interest rate over one percent.

With the bond and interest rate markets in turmoil the top bank CD rates are providing an attractive alternative for yield, safety, and security.  The best CD rates in this environment are looking pretty good compare to the competition.

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