Here's a look at the state of CD rates from Bankrate.com's weekly national survey of large banks and thrifts conducted Jan. 13, 2010.
CDsYields: 0.78 percent (1-year CD yield); 2.07 percent (5-year CD yield)
There was continued downward movement in CD rates this week, albeit just a few basis points, but this is something we should expect for the next several months.
An improving economy should drive up interest rates, but who knows exactly what metrics the Federal Reserve wants to see before the Board is willing to roll the dice? Adding to the mystery are the November elections. No, the Fed isn't supposed to let politics sway monetary policy but if the inflation dragon isn't spewing out giant flames with every breath -- maybe just every other breath -- why not put off a rate hike until the end of the year? All we really can posit is that short-term fixed-income yields will likely be awful for another year.
The average yield for one-year CDs, as surveyed by Bankrate.com, dropped 3 basis points to 0.78 percent. The average yield for five-year CDs also shed 3 basis points; it now stands at 2.07 percent.
The jumbos performed similarly on the short end, with the average yield for one-year CDs marching from 0.87 percent down to 0.84 percent. But, on the long end of our curve, the five-year jumbo average yield gained 1 basis point, nudging up to 2.13 percent.
Money market accounts rose 1 basis point to 0.24 percent.
Check Bankrate's high-yield CDs and high-yield money market account tables for some of the best returns available nationwide.
All deposit products listed with Bankrate are FDIC-insured.
See all CD rates content.
-- Laura Bruce