cds

CD rates for Feb. 27, 2014

 

CD rates stayed low and one even dipped lower this week. I'm Doug Whiteman with your weekly look at Certificates of Deposit.

For the fourth week, the average one-year CD yield is 0.23 percent. The five-year yield stayed at 0.8 percent.

For a $100,000 deposit, the average one-year jumbo CD yield is 0.24 percent. The typical five-year yield is down 1 basis point to 0.85 percent.

A report out last week from the Zurich-based financial firm UBS Wealth Management Americas found that people between the ages of 21 and 36 are, in general, very conservative investors. If they plan to invest at all, only 28 percent of young people believe long-term investing will lead to success.

With the rate of inflation outpacing the yields on certificates of deposit, putting money into CDs is the modern day form of mattress-stuffing. In trying to avoid risk, young people may be setting themselves up for retirement failure. Remember that some risk is okay, as long as you regularly rebalance your portfolio and steadily dial back the risk as you close in on retirement.

To find the best CD rates in your area and to look into higher yielding savings instruments, visit the free search engine on Bankrate.com. I'm Doug Whiteman.

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