CD rates for May 17, 2012


I'm Greg McBride, senior financial analyst with, and here is your weekly look at yields on certificates of deposit.

Yields on CDs remain in the doldrums. Even though yields were unchanged this week, they currently sit at record lows. The average 1-year CD yields just 0.33 percent, and going all the way out to 5 years finds an average return of just 1.13 percent.

Not very appealing, is it? Well investors have certainly taken notice and rather than rolling over their maturing CDs into another CD at these low levels, they're preferring to keep their money accessible in something like a savings account or money market deposit account.

And this is where the good news comes in. The online savings account arena not only offers yields that are competitive with most CDs, but it comes with federal deposit insurance and the ability to access the money at any time.

Despite an environment of continually declining returns over much of the past 5 years, there has been some rare good news in online savings accounts. The competition is heating up, with new entrants and a boost in the top yield available. Whether for that all-important emergency savings account that we all need or just for a temporary parking place, consumers that shop around can find yields of 1 percent or more without sacrificing safety or liquidity.

To find the best yielding online savings accounts, or CDs, check out the free search engine at

I'm Greg McBride.




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