Only two banks reported CD rate increases this week

Online journal Financial News Track reported last week that CD rates fell below 1%. Most issuing banks are offering rates between 0.8-0.99percent per annum. Compared to the first week of December, CD performance has not improved and the trend may continue until the end of the year.

Out of the ten banks listed in Financial News Track for continued monitoring in CD rate changes, only two banks reported CD rate increases for the week. These banks were Charles Schwab and Citizens’ Bank. On Thursday, the online journal reported Citizens’ Bank showing a rate increase of 0.25% annual percentage yield (APY) on their CDs – the 15 Month CD, 24 Month, 36 Month, and 60 Month. Although during the same day, no bank other than Citizens’ Bank reported an increase in their CD rate, Financial News Track says that the bank still has low CD rates.

Citizen Bank’s Citizen Financial Group, Inc., is a commercial bank holding company with assets at 160 billion dollars. The bank’s subsidiaries are RBD Citizens and Citizens Bank of Pennsylvania. Citizen Financial Group, Inc. has 1,600 branches operating in 13 different states across the country with more than 3,500 automated teller machines (ATMs) and employees numbering above 24,000 all over the United States.

At a much smaller scale Charles Schwab Bank reported an increase the following at 0.05%. Last Friday, Charles Schwab Bank was also the only bank to report such an increase. The bank’s 1 Month CD saw a 0.05% increase twice during the week. Charles Schwab’s total annual percentage yield is now at 0.25%, compared with the 0.15% APY at the start of the week.

The Charles Schwab Bank, on the other hand, is based in Reno, Nevada. The bank provides CD accounts and money market funds or accounts, checking and savings accounts, debit cards (ATMs), home mortgages and many more. The bank stresses the Federal Deposit Insurance Corporation (FDIC) coverage in the deposits made in their CDs. The Charles Schwab Bank is a subsidiary of the Equal Housing Lender and Charles Schwab Corporation.

With only two banks reporting CD rate increases this week, financial experts say that that it may take more time before banks can get their annual percentage yields back in their competitive shapes again. They concluded that increases in CD rates may take until next year to show significant improvements. Because of this, CD performance has decreased over the weeks as more and more investors opt out of their CD accounts due to the low return.