Are CD Rates heading Higher Along With a Higher Discount Rate?
The Federal Reserve Bank raised the discount rate from 1/2 percent to 3/4 percent as part of the Fed's action to noralize the the Fed's lending facilities. The Fed's discount rate is the rate banks pay for emergency loans.
The discount rate was raised as part of the Fed's action pull bank on the liquidity it provided the system to help us through the financial crisis and stop us from heading into a depression.
Unfortunately, a higher discount rate doesn’t mean deposit rates like CD rates and savings rates will go higher. On a positive not this also means bank rates for loans like mortgage rates won't head higher either.
The Fed said the step taking shouldn’t be seen as a signal that it will soon boost interest rates for consumers and businesses. The Fed also reiterated their statement in January's FOMC meeting about keeping the Fed funds rate in the targeted range of zero percent to one quarter percent for an extended period of time.
CD CalculatorsCD Ladder Calculator
Recent CD Rate Articles
Savings RatesSavings Accounts
Bank Savings Accounts
Credit Union Savings Accounts
Mortgage RatesMortgage Refinance Rates
Bank Mortgage Rates
Credit Union Mortgage Rates
CD Rate Archives
CD InformationJumbo CD Rates
Using a CD Calculator
FDIC Certificate of Deposit Insurance up to $50 Million
Direction of CD Rates in 2010
CD Rates by RatesORama
Historical CD RatesCD Rates from American Express Bank
Top 12 Month CD Rates
Top 18 Month CD Rates
Three Month CD Rates and CD Yields
AIG Bank CD Rates
Bank CD Rates - January 5, 2009
Ally Bank CD Rates
Discover Bank CD Rates
ING Direct CD Rates
Average CD Rates
CD Rates - Current 12 Month Bank CD Rates