I'm Lucas Wysocki with your weekly look at Certificates of Deposit. The Federal Reserve's statement saying that it would implement QE3 spelled bad news for savers. The average yield on a one-year CD is down one basis point coming in at point-three percent. And for the first time ever, the 5-year CD dropped below 1 percent. It came in this week at point-nine-nine percent. Tying up one-hundred thousand dollars or more in a jumbo CD doesn't yield much better results. The average yield on a 1-year jumbo CD is only point-three-two percent while a 5-year jumbo dropped to 1 percent this week.
Until rates turn around on certificates of deposit, it's a smart idea to consider a high-yield checking account to place your money. Interest rates can be found that are dramatically better than CDs and since it's a checking account, your money isn't all tied up.
To shop around for that higher than average CD or to find a high-yield checking account that fits your needs, use the free search engine here at Bankrate.com. I'm Lucas Wysocki.