CD Rates Continue to Rise

One-year CDs in particular saw big gains in rates.
By Lauren LaCapra ,

Rates on CDs with at least a one-year term have ticked up further over the past week, according to BankingMyWay.com.

The longer the term of the CD, the higher the rate, though locking up your cash for five years at the current 3.14% interest rate may not provide the best returns. Inflation is currently at around 3.9%. Instead, some opt to "

ladder

" their cash in CDs with varying terms to maximize returns and provide an exit strategy if rates improve.

One-year CDs have made the biggest gains over the past week, rising 3 basis points to 2.25%. A basis point is equal to 1/100th of a percentage point.

While CD rates have come up from recent lows, the outlook hinges on whether the

Federal Reserve

will continue the rate-cutting campaign it began in September. The cuts have lowered the cost of borrowing for banks, but also boosted inflation, which was at 2.6% a year ago. Minutes from a recent meeting of Fed officials indicated that further cuts are unlikely.

Other savings products like money-market accounts and savings accounts have also made slight gains.

Here is a look at rate changes over the past week, what states have the highest rates on a one-year CD and states that posted the largest gains in one-year CD rates:

Rate changes:

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