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CD rates to decline

By Sheyna Steiner · Bankrate.com
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.

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2 Comments
Brownie
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.

Wolverine
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?