National CD rates for Aug. 18, 2011

Interest Rate Roundup
CD rate graph
Compare CD rates nationally and in your area.


  • 0.42% (1-year CD yields)
  • 1.45% (5-year CD yields)

Rates on certificates of deposit fell again this week.

The average one-year CD yield only lost 1 basis point to 0.42 percent. The average five-year CD yield tumbled 9 basis points to 1.45 percent.

Jumbo CDs reflect the same pattern. The average one-year CD yield for deposits of $100,000 is down 2 basis points to 0.45 percent. The five-year yield is down 6 basis points to 1.5 percent.

The average money market account yield fell 1 basis point to 0.15 percent.

With few loans being made, banks have little need for deposits. That puts downward pressure on the rates that banks are willing to pay depositors. But is there a limit to how low rates could go?

There may be a floor on money market account and CD rates as a result of Federal Reserve policies. As Claes Bell wrote in Monday's CD Rates blog, the Fed may be buoying interest rates by paying banks 25 basis points of interest on their excess reserves. With a little extra money flowing to financial institutions, banks may have more incentive to pay depositors.




Show Bankrate's community sharing policy

Connect with us