Here's a look at the state of interest rates on five common consumer banking products and the latest rates from Bankrate.com's weekly national survey of large banks and thrifts conducted April 30, 2008.
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CDs
Yields: 1.99 percent (1-year CD yield); 2.79 percent (5-year CD yield)
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A bit of a pop this week for CD yields. The average yield for one-year CDs rose 6 basis points to 1.99 percent, and the average yield for five-year CDs climbed 4 basis points to 2.79 percent. The jumbos fared better too with the one-year coming in at 2.15 percent and the five-year at 2.9 percent, a rise of 5 basis points and 4 basis points, respectively.
Money continues to leave money market funds as investors view the opportunity in the stock market to be much better. CDs and Treasuries will have to pay more if they want to hold on to some of the consumer money they've enjoyed for several months as the stock market lost value.
But don't throw caution to the wind. No one really knows if there will be another big downdraft in the stock market or if the blood-letting is truly over. Find better yielding CDs and money markets for at least some of your cash while the economy tries to turn around.
Money continues to leave money market funds as investors view the opportunity in the stock market to be much better. CDs and Treasuries will have to pay more if they want to hold on to some of the consumer money they've enjoyed for several months as the stock market lost value. Today's cut of the federal funds rate to 2 percent may shave a bit off CD yields, or banks may realize investors are demanding more.
-- Laura Bruce
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CD rates in your area. |
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July 30 - Aug. 5
