We have made an enhancement to the rate table pages. It’s an enhancement that is easy to miss. At the bottom of each of the major rate tables, a chart is included that displays the trend of the average APY of all the banks and credit unions that we track. This is intended to help you see where rates are headed. It also can be useful to see how the Fed rate hikes are affecting deposit rates.
These average yield charts are located at the bottom of the major rate tables, which include savings accounts, standard checking, reward checking, money market accounts and CDs for terms of 1 year, 18 months, 2 years, 3 years, 4 years and 5 years.
Below is an example of the chart for the average 1-year CD APY. The following chart is set for a period of two years of history. The period can be adjusted by the user from 3 months to 5 years. The product type can also be adjusted by the user.
You can see how the average 1-year CD yield was slowly climbing in 2015. This climb ended early in 2016, and the yield remained essentially unchanged until December 2016 when the yield began climbing again. In the last few months, the average yield has been rising faster than at any other time in the last five years.
The last two Fed rate hikes appear to be affecting CD rates more than savings account rates. If you select “personal savings” in the chart, you can see how the average savings account APY has changed in the last two years. As can be seen, the yield has been essentially flat.
As additional Fed rate hikes take place, you can use these charts to see how they’re affecting the deposit yield averages. Hopefully, once the averages start moving up, the climb will be long and steady.