Bank certificate of deposit rates in Massachusetts continue to tick up, many now well past 2 percent.

Brookline Bank was offering 2.25 annual percentage yield on a one-year CD. East Boston Savings Bank was offering 2.2 percent and United Bank out in Western Massachusetts was offering 2.05 percent, DepositAccounts reported this morning.

Other banks in New York, Rhode Island and New Jersey had similar deals.

The average national APY on a one-year CD has increased from roughly .52 percent in March 2017 to about .87 percent today, DepositAccounts reported yesterday.

For a nationally-available 12-month CD without a balance cap, Wisconsin-based Connexus Credit Union’s 12-month CD with a 2.5 percent APY continues to lead the way. The second highest 12-month rate is 2.35 percent APY.

The increases in CDs have been spurred by rising rates at the Fed. The Federal Reserve in March raised its short-term benchmark rate inside a range of 1.5 percent to 1.75 percent, the sixth time the Fed has raised rates since the financial crisis.

Many believe more rate hikes are coming in 2018, although there is some question of whether that means two or three more rate hikes. According to DepositAccounts, there is nearly a 66 percent on the Fed Funds’ Futures probabilities that there will be rate hikes this month and in September. But there is only a nearly 37 percent chance that those two and also a third rate hike in December will occur.

MA Banks Offering APY Above 2 Percent on One-Year CD

by Bram Berkowitz time to read: 1 min
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