CD Rate Trend Index -- April 24, 2002
Bankrate.com

Each week, Bankrate.com surveys bankers, brokers and others to gauge the direction of certificate of deposit (CD) interest rates over the short (one year or less) and long (more than one year) term. Will rates rise, fall or remain relatively unchanged?

This week (May 1 - May 7) the experts say: When rates are this low, it's tough to advise people to lock in a rate. Check Bankrate's "100 highest yields" page for the best CD rates across the country.

PANEL: (short term) Up: 19% Down: 13% Unchanged: 68%
PANEL: (long term) Up: 19% Down: 6% Unchanged: 75%

Again, the majority sentiment this week remains in the "unchanged" column. Businesses are keeping a tight grip on their cash, and consumers are paring back a bit, too. It will be a while before the economy gets stoked and the Fed sees a need to raise interest rates.

EXPERT'S COMMENTS:
"The absence of manufacturer pricing power, caused at least in part by the prevailing public confidence that the value of money is not eroding, has kept a lid on the inflation jar. The current Fed stance on monetary policy, i.e., not raising short-term interest rates, is consistent with this price stability."
-- Thomas Grzymala, Alexandria Financial Associates, Ltd., Alexandria, Va.
Short-term: Unchanged
Long-term: Unchanged

"The government tells us that the economy is getting better, but business and consumer spending was actually less in the first quarter compared to the fourth quarter. Until the economic improvements trickle down to the individual level, rates don't have anywhere to go. We are most likely going to be stuck around current levels for a while longer."
-- Jason P. Flurry, CFP, Flurry Financial, LLC, Roswell, Ga.
Short-term: Unchanged
Long-term: Unchanged

BANKRATE'S ANALYSTS:
"There isn't much excitement in CD yields right now. But the economy is improving, even if interest rate hikes are still a couple months away. Be content to stay in short-term maturities for now."
-- Greg McBride, financial analyst, Bankrate.com
Short-term: Unchanged
Long-term: Unchanged

"It's status quo for the time being. Rates will likely remain stagnant. Search Bankrate.com's list of "100 highest yields" to get the best deals on CDs."
-- Laura Bruce, savings writer, Bankrate.com
Short-term: Unchanged
Long-term: Unchanged

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About the Bankrate.com Rate Trend Index
Bankrate.com surveys more than 100 experts in the banking and mortgage fields to see if they believe certificate of deposit and mortgage rates will rise, fall or remain relatively unchanged. For the deposit index, the panel is comprised of banks, thrifts and credit unions that directly offer FDIC-insured certificates of deposit to the end consumer. For the mortgage index, the panel is comprised of mortgage bankers, mortgage brokers and other industry experts who are actively engaged in providing residential first mortgages to the end consumer. Results from the Bankrate.com CD Rate Trend Index will be released each Wednesday. Results from the Bankrate.com Mortgage Rate Trend Index will be released each Thursday.