cds

National CD rates for Sept. 8, 2011

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

CDs

  • 0.39% (1-year CD yields)
  • 1.34% (5-year CD yields)

The average one-year CD yield is down 1 basis point to 0.39 percent. The average five-year CD yield is down 4 basis points to 1.34 percent. A basis point is one-hundredth of 1 percentage point.

For deposits of $100,000, the average one-year jumbo CD yield is down 2 basis points to 0.42 percent. The average five-year yield is down 4 basis points to 1.38 percent.

The average money market account yield remains the same at 0.15 percent.

Clearly, money market account yields have suffered greatly in the years since the Federal Reserve slashed short-term interest rates to zero in December 2008. According to Bankrate data, the average yield on money market accounts fell from 0.59 percent at the beginning of 2009 to 0.15 percent in early September 2011.

As a handful of basis points won't help anyone reach their savings goals, the hunt has been on for safe alternatives to savings stalwarts. The most recent offering comes from Forbes.com, tempting savers with "5 places to save cash other than US money markets, Treasurys."

According to the story, savers need to broaden their horizons in order to earn more interest and pick up some currency diversification along the way. The recommendations include holding the Swiss franc and buying CDs from Chinese, Norwegian, Australian and Singaporean banks.

 

 

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