National averages -- CD rates for week of Jan. 22, 2009

Here's a look at the state of interest rates on five common consumer banking products and the latest rates from's weekly national survey of large banks and thrifts conducted Jan. 21, 2009.


Yields: 1.63 percent (1-year CD yield); 2.37 percent (5-year CD yield)

Another sizable drop in CD yields to report this week.

The average yield for a one-year CD as surveyed by is 1.63 percent, down 12 basis points from last week. Maybe we should look at it this way -- the yield for a one-year Treasury is about 0.42 percent. It stinks all over.

The average yield for a five-year CD dropped 16 basis points to 2.37 percent. Imagine locking up your money for five years for 2.37 percent?

Jumbos crashed just as badly this week. Just because you're plunking down $100,000 doesn't mean you can expect a considerably better return in this environment than someone depositing $1,000. The average one-year yield came in at 1.74 percent, off 11 basis points. The five-year jumbo yield dropped 16 basis points to 2.39 percent.

Considering the awful state of the economy and the fact that inflation, apparently, is nowhere to be found, we should expect this scenario to continue for quite some time.

For comparison, one-year high-yield CDs are paying between 2 percent and 3 percent.

Cash you've stashed in a money market account is pretty much on loan to the bank for free these days. The average yield this week is 0.57 percent, down 1 basis point.

High-yield money market accounts are running from 1 percent to almost 4 percent, at least at this moment!

All deposit accounts listed on Bankrate are FDIC-insured.

-- Laura Bruce


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