The basis point seesaw has fallen once again in the national survey of certificate of deposit rates.
The average yield on a 1-year CD was 0.27% for the 4th straight week. The average 5-year yield was 0.85% for the 3rd week in a row.
A $100,000 deposit qualifies for jumbo CD rates. The average 1-year jumbo CD yield was 0.31% for the 11th straight week. The 5-year jumbo yield was down 1 basis point to 0.89%.
A basis point is one-hundredth of 1%.
The average money market account yield was 0.09% for the 59th consecutive week. That's 1 year and 7 weeks.
These certificates of deposit offer withdrawal flexibility, but the yields aren't too hot. Read more
Bankrate's CD Study shows rising-rate CDs start slow, depend on market to catch up. 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
Here are the average CD rates from Bankrate's weekly survey of large banks and thrifts. Read more
These credit unions pay more than 3 times the average yield on a 12-month CD. 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The length of time until the CD matures and the money deposited within can be withdrawn without penalty.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.