Rates on certificates of deposits were mixed this week, according to Bankrate's latest survey of rates.
The 5-year CD yield stayed at 0.82% for the second consecutive week. The typical 1-year CD yield stayed at 0.29% for the sixth week.
For a deposit of $100,000, the average 1-year jumbo CD yield increased 1 basis point to 0.33%. But the 5-year jumbo CD yield remained at 0.87%.
A basis point is one-hundredth of 1%.
The average money market account yield stayed at 0.11% for the seventh straight week.
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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The length of time until the CD matures and the money deposited within can be withdrawn without penalty.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.