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National CD rates for May 5, 2011

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  • 0.46% (1-year CD yields)
  • 1.71% (5-year CD yields)

Here's a look at the state of CD rates from Bankrate.com's weekly national survey of large banks and thrifts conducted May 4, 2011.

CD rates were unchanged in this week's rate survey.

The average one-year CD yield stayed put at 0.46 percent for the third week in a row. Similarly, the average five-year CD yield cruised at 1.71 percent for the 10th week in a row.

For jumbo CDs, the average one-year yield stayed at 0.51 percent, and the five-year jumbo CD yield stayed planted at 1.73 percent for the third week in a row.

The average money market account yield is 0.17 percent for the fourth week in a row.

With CD rates at historic lows, savers may be tempted by advertisements touting yields well above the national averages. While the ads may contain kernels of truth, anyone claiming to offer extremely high yields should be viewed through a lens of skepticism. The Federal Deposit Insurance Corp. warns against some of the scams the unscrupulous may use to lure in victims.

In "Certificates of deposit: Tips for savers," the FDIC cautions that investors should make certain the company issuing the product is federally insured and that the temptingly high yields aren't just a marketing ploy.

In some instances, a company may advertise an extremely high CD rate but only pay that rate on a limited amount of money, for example, the first $1,000. Use Bankrate's rate tables to find high-yield CDs and high-yield money market accounts.

All deposit products listed with Bankrate are FDIC-insured.

Read more at Bankrate's new blog for CD investors, the CD rates blog.

-- Claes Bell

 

 

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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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