CDs
Yields: 1.37 percent (1-year CD yield); 2.29 percent (5-year CD yield)Short-term CDs continue losing ground. The average one-year yield is 1.37 percent, down 6 basis points since last week. For comparison, a one-year Treasury is paying 0.71 percent, so the CD still wins even with the Treasury's preferential tax treatment. Regardless, the return on either product is disheartening.
The average yield for a five-year CD came in at 2.29 percent, off by 1 basis point from last week.
The one-year jumbo yield shed 5 basis points and now stands at 1.49 percent; while the five-year is at 2.32 percent, down 2 basis points.
Let's take a look at high-yield CDs, which have also come down significantly over the months but still offer a considerably better return. If you're willing to lock up your money for one year you can easily earn 2.5 percent. A five-year CD gets you in the 3.5 percent neighborhood.
The average yield for money market accounts fell 1 basis point to 0.49 percent. Our high-yield money market account tables list several banks paying between 2 percent and 2.5 percent.
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-- Laura Bruce