Rates on certificates of deposit barely moved from last week, according to Bankrate's latest survey of rates.
The 5-year CD yield was 0.83%, a drop of 1 basis point from the previous week. The typical 1-year CD yield was 0.28% for the 8th straight week.
A basis point is one-hundredth of 1%.
For a deposit of $100,000, the average 1-year jumbo CD yield was 0.31% for the 33rd consecutive week. For a 5-year jumbo CD, the yield was 0.88%, a drop of 2 basis points from last week.
For the 17th straight week, the average money market account yield was 0.11%.
These certificates of deposit offer withdrawal flexibility, but the yields aren't too hot. Read more
U.S. Treasury bills and bonds are almost always a solid investment. Why? They're backed by the U.S. government. Read more
CDs often have interest rates leaps and bounds above those for savings accounts. Read more
Never settle for a mediocre CD. These credit unions pay more than twice the average yield. Read more
CD rates remain low, but these credit unions pay 4 times the average yield. Read more
A certificate of deposit, or CD, is one of the safest and most predictable investments around. As long as the CD is backed by the FDIC, it's guaranteed not to lose principal, and in most cases, investors can count on earning a stable return for the full term of the CD. Find out more about the factors that you need to consider when choosing a CD below.
The length of time until the CD matures and the money deposited within can be withdrawn without penalty.
Short for annual percentage yield, APY is the total return of the CD per year, taking into account the beneficial effect of compounding.
The percentage of the CD's principal paid out annually in interest. Does not take into account the effect of compounding.
The minimum amount of money you need to open a particular CD. Banks may be willing to pay higher rates of interest on CDs with higher minimum deposits.
Short for Federal Deposit Insurance Corporation, the FDIC is an independent government-backed agency that covers the deposits of accountholders at FDIC-insured banks. FDIC-insured deposits are backed by the full faith and credit of the U.S. government, and since the agency was established in 1933, no depositor has lost a single cent of insured principal.