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CD Rate Trend Index

Will CD rates rise, fall or remain relatively unchanged? Experts and Bankrate analysts provide their insights.

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RTI: March 2009
Can the financial picture get any gloomier? Unfortunately, it can and it probably will. All the safe havens, such as CDs, have been pummelled relentlessly. Be sure to stick with the high-yield CDs to get as much return as possible -- FDIC-insured.

Industry experts and Bankrate commentary
Experts' commentsShort termLong term
Foolish mistake: stopping contributions into your 401(k) or 403(b) plans.
Lauren Prince, CFP, Prince Financial Advisory, New York
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Holy smokes, Batman! Who's going to save Gotham City now? Sounds like the caped crusader is the U.S. taxpayer with another $750 billion! Golly gee whiz, I thought during these times Obama would look "not" to institute the tax rate hikes he promised during the election. I thought wisdom and reason would prevail, given the fact the economy is in a severe recession with no bottom in sight. When has increasing tax rates ever been a successful tactic to stimulate the economy? What does this mean for you? Continue to exercise caution. In the words of John Bogle, 'Unfortunately I think it is going to be bad timing but if you can't afford to lose another penny or another nickel, you have to get out.' So keep your CDs and/or add to them, if that's your inclination, and shop the longer side, say three to five years. This economic downturn will not end soon. The 5 million plus insured unemployed are likely still to be out of a job by 2010. I really don't think hyperinflation is a concern when consumer confidence and spending are so low. Those that may be subject to the tax rate increases need to look at after-tax return now more than ever. If you are seeking principal protection for your longer-term dollars, tax-deferred, fixed annuities should be on your radar.
Michelle Ford, CFP, senior vice president, Vantage Point Bank, Fort Washington, Pa.
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Bankrate's analystsShort termLong term
Unfortunately for savers, all the momentum in CD yields is in the wrong direction and is likely to stay that way.
Greg McBride, CFA, senior financial analyst, Bankrate.com
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The CD yield trend is still downward, but the weekly drops have been pared to 1 or 2 basis points, as opposed to double digits earlier this month.
Laura Bruce, senior reporter, Bankrate.com
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Certified Financial Planners, Chartered Financial Analysts and others with similar qualifications are invited to e-mail us if interested in participating in our CD Rate Trend Index survey. Please state your professional background, title, company name and address.

About the Bankrate.com Rate Trend Index
Bankrate.com surveys experts in the banking and mortgage fields to see if they believe certificate of deposit and mortgage rates will rise, fall or remain relatively unchanged. For the deposit index, the panel comprises banks, thrifts and credit unions that directly offer FDIC-insured certificates of deposit to the end consumer. For the mortgage index, the panel comprises mortgage bankers, mortgage brokers and other industry experts who provide residential first mortgages to consumers. Results from Bankrate.com's CD Rate Trend Index will be released monthly. Results from Bankrate.com's Mortgage Rate Trend Index will be released each Thursday.

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Product Rate Change Last week
1 Year CD 0.90%  0.01 0.89%
2 Year CD 1.03%  0.02 1.01%
5 Year CD 1.59% --0.00 1.59%
 
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