Average CD Yields Fall
Posted by Prime Interest Rates on 09/24/08 in Interest Rate News
Carnage on Wall Street isn’t helping CD yields, even if some banks are hungry for deposits. CDs and Treasuries are safe havens in times like this and their yields suffer because of it.
The “price” of a CD doesn’t rise as investors scoop them up, but banks don’t need to offer high yields to attract customers either. Top that off with the Fed deciding to leave its key short-term interest rate target at 2 percent, and we’re sort of in the doldrums for this week.
The average yield for a one-year CD, as surveyed by Bankrate, is 2.47 percent, up 1 basis point from last week. The five-year average yield dropped 1 basis point to 3.55 percent. Folks who invest the $100,000 minimum for one of the jumbo CDs surveyed by Bankrate will find the one-year CD average at 2.69 percent, a gain of 2 basis points. The five-year jumbo average is down 4 basis points to 3.74 percent.
Money market account yields are unchanged this week, averaging 0.7 percent for the third week.
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