Direction of CD Rates in 2010CD rates have been going down for about 18 months. The good news is bank CD rates will eventually go higher sometime in 2010. In fact, average CD rates were mostly higher this week over last, though we don't anticipate the trend higher will continue until the second half of 2010.
The Federal Reserve will probably start raisingthe Fed funds rate in third quarter of 2010. A higher Fed funds rate will drive CD rates at banks and savings account rates higher. Unfortunately an increase in the Fed funds rate will also cause home mortgage loan rates to head higher as well. Higher CD rates will be good news since rates have been so low for so long. There was an interesting article in Businessweek about how much money banks have made since CD rates have been low. Banks made about $56 billion since the Fed funds rate was lowered to 0%. The average 12 month certificate of deposit rate has been around the 1.00% range for over a year now. The best CD rates available right now for a 12 month certificate of deposit is around 1.75%. We expect CD rates to gradually head higher this year, 12 month CD rates will probably average 2.00%, some banks will probably go as high as 2.50% on a 12 month CD before the end of 2010. The average 5 year CD rate isn't much higher than the average 12 month CD rate, right now the average 5 year CD rate is only 2.43%. You can find CD rates higher than the national average CD rate. PenFed, a credit union in California, is offering a 5 year CD yield of 3.50% right now. Explore Other CD Rate Offers
The Farmers & Merchants Bank 12 Month CD Rates
Best CD Rates: One Year CD Rates
Using a CD Calculator
Certificate Rates at Affinity Plus Federal Credit Union: Wahoo Certificate 12 Month APY 2.00%
Top One Year CD Rates - February 9, 2010
Short Term CD Interest Rates in Augusta, Maine
Top 12 Month CD Rates
Top 25 Three Month CD Rates at Banks
Highest CD Rates in Marietta, Georgia
Maryland CD Rates & CD Yields
|