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 (June 2- June 8) the experts say: When
rates are this low, it's still 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: 60%
Down:
0%
Unchanged:
40%
PANEL: (long term)
Up: 60%
Down:
0%
Unchanged:
40%
Stay with short-term CDs so you're
not locking in your money for longer than six months at these low
rates.
"Expect yields to continue trending higher as
the first Fed rate hike looms at the end of the month." -- Greg McBride, CFA, senior financial analyst,
Bankrate.com Short-term:Up Long-term:
Up
"The national average for five-year CDs is rapidly
approaching 3.5 percent. It's a decent improvement and a definite
upward trend, but still not worth tying up funds for five years. Best
bets are still in the shorter maturities, one-year and under. Check
Bankrate's Highest Yields
page and you'll find significantly better rates than the national
averages." -- Laura Bruce, savings writer, Bankrate.com Short-term:Up Long-term:
Up
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.
