CD rates Blog

Finance Blogs » CD rates Blog » CD rates to decline

CD rates to decline

By Sheyna Steiner ·
Wednesday, October 5, 2011
Posted: 11 am ET

CD rates may have a little bit further to fall than I predicted in last week's blog post.

On Tuesday, Market Rates Insight, a pricing consultant for banks, released a report projecting interest rate decreases this month on term deposits of 36, 48 and 60 months.

According to the report, the five-year CD yield will dip 6 basis points to 1.22 percent. The one-year CD yield is expected to fall 2 basis points.

Bankrate's weekly rate survey will be completed by this afternoon. My prediction was that the carnage resulting from Operation Twist would be mostly over by last week.

I also predicted that I was probably wrong, so at least that part was right. Since Operation Twist was announced on September 21, longer-term CD rates have fallen 5 basis points.

Get more CD and Investing News with our free weekly newsletter.

Follow me on Twitter.

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
October 10, 2011 at 3:10 pm

Clark Howard Financial Advisor says inflation will increase in about 5 years thus causing cd rates to increase. I will have to see it to believe this will happen. I don't know what is going on in banking today.

October 06, 2011 at 7:39 am

Pretty soon, you'll have to pay just to have a CD and earn no interest.

Pretty awesome, huh?