Here's a look at the state of CD rates from Bankrate.com's weekly national survey of large banks and thrifts conducted April 7, 2010.
CDsYields: 0.72 percent (1-year CD yield); 2.14 percent (5-year CD yield)
No news is good news in the CD interest rate realm. While only one maturity surveyed by Bankrate saw a slight gain, yields did not lose any ground this week.
The yield on the average one-year CD remains 0.72 percent. The average five-year CD yield inched up 1 basis point to 2.14 percent.
On the jumbo side, yields remain stagnant. The one-year CD yield is 0.77 percent and the yield on a five-year jumbo CD is still 2.13 percent.
The average yield on money market accounts is 0.22 percent for the third week in a row.
Any upcoming rate hikes from the Federal Open Market Committee will likely have a negligible effect on money market fund investors for quite some time, Chuck Jaffee wrote in MarketWatch.com on Wednesday. It will take two or three moves upward before investors see a difference in their returns because fund management has implemented fee waivers to keep returns positive, if only by a hair. They'll want to recoup their costs before passing on a higher yield to investors.
However, investors in bond funds will notice a change, with just a one quarter-point rate increase due to the inverse relationship between bond yields and prices. When yields increase, prices fall.
Jaffee also says CD investors may see an instant uptick in yields but they should wait for further moves from the Fed before locking in a long-term rate.
For some of the best returns available across the country, check Bankrate's high-yield CDs and high-yield money market account tables.
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-- Sheyna Steiner