When the Fed makes a move, or even if it leaves rates unchanged, it affects your wallet. Here’s how the latest Fed announcement will affect interest rates on certificates of deposit.

Yields on long-term CDs, one-to-five-year maturities, range from 1.80 percent to 3.61 percent.

On the shorter end, the average yield on a three-month CD is 1.46 percent and 1.57 percent on the six-month.

Money market accounts are averaging 1.00 percent.

Best moves now:
Until the Fed makes a move to hike interest rates, rates on deposit products, such as CDs and money market accounts, will continue to stagnate.

If you have a laddered CD plan, stick with it. If a rung is coming due, replace it with the proper maturity. If you have a five-year ladder that was started even a couple of years ago, you have some CDs earning a very good return in comparison to what is offered today.

If your five-year rung is maturing, you may want to shop around and see if another institution is offering a better rate on the five-year than your present institution. There’s no law that says you have to have all the rungs in the same bank.

Check Bankrate.com for the
best CD rates across the country, then look for the
best money market rates.

— Posted: Sept. 24, 2002