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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 (June 20 - June 26) the experts say: Don't lock. Higher yields may be in the cards.
PANEL: (short term)
PANEL: (long term)
Quite a mix of opinions this week from our panelists. Several say this lull will continue; but a fair number are expecting higher yields.

Graph the trend
Archive of Rate Trend Index columns

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"Rates are up slightly from last week on CDs. From a practical standpoint, investors may wish to consider broker-sold CDs from reputable brokerage firms that are federally insured and under the FDIC limits. In many cases, they are paying considerably higher rates than local banks. In addition, these are very easy to ladder (different maturities) when bought through a broker."
-- Herbert G. Hopwood III, CFP, CFA, Hopwood Financial Services Inc., Great Falls, Va.
Short-term: Up
Long-term: Up

"Community bankers that I have visited with are indicating pressure in funding loan demand. If the lending environment stays strong, CD rates may have to rise to compete with other fixed income investments. For now do not expect CD rates to move higher, but do watch the trend as you may get an opportunity later this summer to capture a better interest rate. Stay short-term with your safe money."
-- Barry Vosler, CFP, CRPC, AAMS Linsco/Private Ledger, DeWitt, Iowa.
Short-term: Unchanged
Long-term: Unchanged

"We believe that the Federal Reserve is closely watching consumer spending. With the recent reports of weaker retail sales and new home starts we feel any near term action by the Federal Reserve is remote. We expect that the recent spike in rates will be short lived and rates will return to the most recent trading range."
-- Martin P. Mesecke, CFP, Self Worth Financial Planning LLC, Plano, Texas
Short-term: Unchanged
Long-term: Unchanged

"The upward sloping yield curve is welcome relief to banks' profit margins. Don't expect them to squander it by boosting CD yields right away."
-- Greg McBride, CFA, senior financial analyst, Bankrate.com
Short-term: Down
Long-term: Unchanged

"I don't see much movement this week. It would take a while for bond market action to filter down to CDs and Treasury yields have cooled off a bit the past week. There simply is no reason for banks to raise CD yields right now unless they have a need for deposits and are facing stiff competition from other banks in their territory. Online, high-yield offers are probably the best bet for CD hunters."
-- Laura Bruce, senior reporter, Bankrate.com
Short-term: Unchanged
Long-term: Unchanged

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