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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?
Don't lock in This week (Dec. 3 - Dec. 9) 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: 25%
Down: 0% Unchanged: 75%
PANEL: (long term)
Up: 63%
Down: 0% Unchanged: 37%
Stay with short-term CDs so you're not locking in your money for longer than six months at these low rates.

Graph the trend
Archive of Rate Trend Index columns

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"There is a tug of war going on with the stock market and the bond market. With the dollar continuing to fall, the pressure on bond prices will cause money to transfer from low-yielding bonds to better-performing stocks."
-- Michael Kresh, M.D. Kresh Financial Services Inc., Hauppauge, N.Y.
Short-term: Up
Long-term: Up

"Currently the Fed-fund futures market, where one might see the trend of future short-term interest rates, sees short-term interest rates moving up 25 basis points in May of 2004. As well, investors in TIPS opine that inflation will rise 2.5% over the next several years."
-- Thomas Grzymala, Alexandria Financial Associates, Ltd., Alexandria, Va.
Short-term: Unchanged
Long-term: Unchanged

"No significant change anticipated. If you're determined to buy a CD, be sure to check Bankrate.com. The national average on a one-year CD is 1.14 percent, but you can almost double that, to 2.16 percent, by checking our 100 Highest Yields page."
-- Laura Bruce, savings writer, Bankrate.com
Short-term: Unchanged
Long-term: Up

"Despite very positive economic momentum, the Fed's repeated assertions about keeping interest rates low is restraining any significant improvement in deposit yields."
-- Greg McBride, financial analyst, Bankrate.com
Short-term: Unchanged
Long-term: Up

"I expect short-term rates to continue drifting sideways and longer-term rates to continue to rise. Eventually, short rates will follow long, but it doesn't appear that will be anytime soon."
-- Jason P. Flurry, CFP, LPL Financial, Planmark Capital Management, LLC, Alpharetta, Ga.
Short-term: Up
Long-term: Up

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1 yr CD 1.09%
2 yr CD 1.27%
5 yr CD 1.67%

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