Crescent Bank lowered their rates on long-term (24 to 60 months). The rates for these terms dropped by 5 percentage points. However, the rates for shorter-term CDs, such as 12-month and 18-month, remain the same at 4.60% and 4.65% respectively.
Crescent Bank lowered their baseline CD rates for their longer CD terms. The CD rates for 24-month, 30-month, 36-month, 48-month, and 60-term accounts have dropped by 5 percentage points. The rates for shorter-term CDs, 12-month and 18-month, remain the same.
|Term||Current CD Rate||Feb 13 Change To|
|12 mo||4.60%||No change|
|18 mo||4.65%||No change|
Crescent Bank’s rates are still very competitive. However, there are other financial institutions to consider and it pays to compare rates before making a decision.
This change comes as the Federal Reserve has recently increased its rates and has suggested that it will continue to do so in the future. As a result, many banks have also increased their rates. However, recent economic reports are tapering expectations on how rates will behave in the long term. It’s important for consumers to stay informed of changes in CD rates, as this can have a significant impact on their savings and investments. By choosing the best CD rates, consumers can maximize their returns and reach their financial goals more effectively.
How does the Federal Reserve change CD rates?
Every six to eight weeks, the Federal Reserve’s rate-setting committee holds a two-day meeting to determine the future of the federal funds rate, which can be increased, decreased or kept unchanged.
The federal funds rate does not directly impact the interest rates offered by financial institutions for CD deposits. Rather, it is the rate at which institutions lend or borrow their excess reserves to each other overnight. However, a higher federal funds rate creates an incentive for institutions to seek deposits from consumers as a cheaper alternative, leading them to increase savings, money market, and CD rates.
In response to the pandemic, the Fed announced a 0% emergency rate cut in 2020, and the rate remained at that level for two years. In March 2022, the Fed began increasing the rate by 0.25%, with a second increase of 0.50% in May. This was followed by four larger hikes of 0.75% in June, July, September, and November.
The recent easing of inflation led to a more modest 0.50% increase at the December meeting. The Fed has indicated that there will be additional increases in 2023, though it is expected that these will be smaller quarter-point increases.
- Crescent Bank is lowering their CD rates for longer terms, including 24-month, 30-month, 36-month, 48-month, and 60-month terms.
- The rates for these terms dropped by 5 percentage points, while the rates for shorter-term CDs remain unchanged.
- This change comes as the Federal Reserve has recently increased its rates and suggested it will continue to do so in the future. However, recent positive job numbers may be tapering expectations about how rates will behave in the long term.
- It’s important for consumers to stay informed of changes in CD rates as this can have a significant impact on their savings and investments.