Top 2 Year Jumbo Certificate of Deposit Rate at 1.43% APY

There is a new leader on our 2 year jumbo certificate of deposit rate list. CIT Bank is now offering 2 year jumbo CD rates at 1.42 percent with an APY of 1.43 percent. CIT Bank is also offering one of the best rates available for a regular 2 year CD, currently at 1.34 percent with an APY of 1.35 percent.

It won't be long before we see 1 year and 2 year CD rates above 1.50 percent. The change could come as soon as mid June, when the Federal Open Market Committee (FOMC) meets to decide monetary policy. The FOMC will most likely vote on increasing the federal funds rate which is currently near zero percent.

Deposit rates follow the federal funds rate, which explains why rates have been so low. When the fed funds rate is increased, deposit rates will also move higher. We expect incremental 0.25 percent increases in the fed funds rate starting in June.

After the June meeting, the FOMC meets 4 for times, in July, September, October, and December. By the end of 2015, we expect the Fed funds rate to be at 1.25 percent. The best 1 year bank CD rates will be around 2.25 percent to 2.50 percent. The best 2 year CD rates will be above 2.50 percent and possibly as high as 3.00 percent.

Listed below are the highest regular rates and jumbo rates on 1 and 2 year certificate of deposit this week:

1 Year Regular Certificate of Deposit Rates

• Chartway Federal Credit Union 1.31% APY 1.31%
• Connexus Credit Union 1.30% APY 1.30%
• Bank Direct 1.20% APY 1.21%
• CIT Bank 1.19% APY 1.20%
• Synchrony Bank 1.19% APY 1.20%

1 Year Jumbo Certificate of Deposit Rates

• Chartway Federal Credit Union 1.30% APY 1.31%
• Synchrony Bank 1.19% APY 1.20%
• My e-BAnC by BAC Florida Bank 1.19% APY 1.20%

2 Year Regular Certificate of Deposit Rates

• CIT Bank 1.34% APY 1.35%
• Synchrony Bank 1.34% APY 1.35%

• My e-BAnC by BAC Florida Bank 1.30% APY 1.31%
• GE Capital Bank 1.29% APY 1.30%

2 Year Jumbo Certificate of Deposit Rates

• CIT Bank 1.42% APY 1.43%
• My e-BAnC by BAC Florida Bank 1.34% APY 1.35%
• Home Savings Bank 1.29% APY 1.30%