Despite the fact that the Federal Reserve is slowly removing the monetary stimulus provided by quantitative easing, rates on certificates of deposit have barely budged.
That's not surprising, as the federal funds rate has a direct impact on CD rates.
It is widely expected that the central bank will wait until the quantitative easing program is completely wound down, and maybe then some, before it considers raising the federal funds rate. On a local level, the need for deposits drive rates at individual banks.
That's why some cities enjoy much better CD rates than others. With a brisk lending business, banks in these cities want to sell you a CD.
These are the top three cities for CD rates based on Bankrate's weekly rate surveys of the biggest banks in the top 25 markets in the country.
Top three cities for one-year CD rates in February
|San Diego||0.41 percent|
|Bankrate national average||0.23 percent|
The top three cities for five-year CD rates were a little different.
Top three cities for five-year CD rates in February
|Tampa, Fla.||1.12 percent|
|Bankrate national average||0.8 percent|
How do you search for the best CD rates?
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Senior investing reporter Sheyna Steiner is a co-author of "Future Millionaires' Guidebook," an e-book written by Bankrate editors and reporters. It's available at all the major e-book retailers.