GoBankingRates is continuing its state-by-state historical rate comparison by focusing on interest rates offered by local banks and credit unions in Vermont. The interest rate aggregating website compared Vermont's average rates on savings accounts, 6-month CDs, 1-year CDs and 2-year CDs in 2013 against averages from two years ago. Vermont now has the fifth highest average savings account rate.
According to the rankings compiled by GoBankingRates (www.GoBankingRates.com), using its database of interest rates from more than 4,000 U.S. banks and credit unions, average certificate of deposit interest rates in Vermont have dropped over the last two years, but average savings account rates have stayed the same.
In fact, average 2-year CD rates fell most significantly by .48%, representing a 44 percent change from 2011 figures. The average savings account rate held at .30%.
Account Type: 2011 Average Rate/2013 Average Rate
6-Month CD: 0.43% APY/0.33% APY
1-Year CD: 0.75% APY/0.45% APY
2-Year CD: 1.08% APY/0.60% APY
Savings Account: 0.30% APY/0.30% APY
Casey Bond, GoBankingRates managing editor, explains, "CD rates are set not based on today’ s economic situation, but the future. It makes sense, then, that longer-term deposit account rates such as 2-year CD rates would experience the largest drop during the aftermath of a recession."
The study also compares current Vermont rankings in each deposit category against the rest of the U.S. states, with the goal of determining how rates have fared over time in Vermont.
Average Vermont Credit Union & Bank Interest Rates
Vermont credit union and bank interest rates have changed as follows:
March 2011
6-Month CD: 0.43% APY
1-Year CD: 0.75% APY
2-Year CD: 1.08% APY
Savings Account: 0.30% APY
February 2013
6-Month CD: 0.33% APY
1-Year CD: 0.45% APY
2-Year CD: 0.60% APY
Savings Account: 0.30% APY
Steadiest Rate: Savings Account (no change)
Biggest Drop: 2-Year CD (dropped by .48, a 44% difference)
Historical Rankings of Credit Unions and Banks in Vermont
Vermont Rank
Account Type
2011
2013
6-Month CD
47th
33rd
1-Year CD
40th
50th
2-Year CD
41st
50th
Savings Account
34th
5th
About This Vermont Interest Rates Study
This study compares interest rates from local Vermont banks and credit unions only; online-only and national banks were not considered. Rate information is compiled from GoBankingRates’ database of more than 4,000 financial institutions. Current rates are as of February 28, 2013 and historical rates are based on archived rates data as of March 31, 2011.
Interest rates are based on institutions’ online published rates and assume a $10,000 deposit. Please note that current rates may have changed since the publish date.
To see the full report on Vermont interest rates, click here.
For questions about this report or to schedule an interview with a GoBankingRates finance expert, please use the contact information below.
About GoBankingRates
GoBankingRates.com is a national personal finance website dedicated to connecting readers with the best interest rates on bank products nationwide. The GoBankingRates team manually collects interest rate information from over 4,000 banks and credit unions, making their database the only source of comprehensive and authentic local rate data.
GoBankingRates.com is the national flagship site within a network of more than 1,500 banking domains, including local partner site VermontBankingRates.com, which generate more than 2 million visits each month. VermontBankingRates is a locally-focused website dedicated to connecting Vermont readers with the best interest rates in the state on Certificates of Deposit, Savings Accounts, Auto Loans, Mortgages and more.
To learn more about local savings account and CD rates, view our table of current interest rates.
See our most current interest rates today.
March 13, 2013 Cited from: http://www.gobankingrates.com/banking/best-interest-rates/vermont-credit...