cds

National CD rates for Aug. 25, 2011

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Compare CD rates nationally and in your area.

CDs

  • 0.41% (1-year CD yields)
  • 1.42% (5-year CD yields)

This week's survey finds certificates of deposit rates slightly lower than last week.

The average one-year CD yield dropped 1 basis point to 0.41 percent. The average five-year CD yield fell 3 basis points to 1.42 percent. A basis point is one-hundredth of 1 percentage point.

For deposits of $100,000, the average one-year jumbo CD yield remains 0.45 percent. The five-year jumbo CD yield is down 4 basis points to 1.46 percent.

The average money market account yield is 0.15 percent for the second week in a row.

With all the recent market turmoil, savers can at least revel in the safety of their CDs. Big investors are joining the conservative money in shallow waters, fleeing to the safety of Treasury securities as evidenced by this week's Treasury auction.

The Treasury Department sold $35 billion in four-week Treasury bills earning an interest rate of zero percent, MarketWatch.com reported on Tuesday.

There was no paucity of buyers. Bidders wanted to spend $151.7 billion on the yield-free bills.

That's not the first time that short-term Treasuries have hit zero percent, but six-month bills did hit a new low, according to Businessweek.com.

The U.S. Treasury Department reports that $27 billion of six-month bills sold at a discount rate of 0.045 percent, the lowest ever recorded for the six-month Treasury bill.

The discount rate indicates that Treasury securities sold for less than face value. At maturity, the securities can be redeemed for their par, or face, value. The difference between the face value and the discounted price at auction equals the annualized interest rate.

 

 

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Product Rate Change Last week
1 Year CD 0.89%  0.01 0.88%
2 Year CD 1.01%  0.02 1.03%
5 Year CD 1.59%  0.01 1.60%
 
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