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 May 7, 2008.
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CDs
Yields: 2 percent (1-year CD yield);
2.83 percent (5-year CD yield)
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Another small dose of upside this week for CD rates
as the one-year average yield rose 1 basis point to an even 2 percent,
and the five-year rose to 2.83 percent on a gain of 4 basis points. The
jumbos also saw gains with the one-year now averaging 2.17 percent and
the five-year at 2.96 percent with gains of 2 basis points and 6 basis
points, respectively.
These gains, while certainly nothing to write home
about, are interesting on the back of last week's Fed cut of 25 basis
points. The market is anticipating higher moves on the long end, but we
shouldn't expect to see a lot in the way of gains on shorter-term CDs
until the Fed starts ratcheting up the short-term rates again. However,
competition for customers and deposits is always an issue with many banks,
so look for institutions
that are willing to pay far better than average rates for your money.
Money market accounts gained 2 basis points this
week and now pay an average of 0.66 percent. You don't have to settle
for that. Scout around for much better money market accounts in Bankrate's
high-yield
database.
-- Laura Bruce
See
CD rates in your area. |
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July 30 - Aug. 5
