Savings and CD Rates Keep Dropping Along with Fed

Article Submitted by: BestCash Admin
Savings - Checking - CDs


Six months ago you could find a savings account or CD above 6%. Just a month ago you could find a rate above 5%. Soon, you'll be lucky to find a rate above 4%.

 

Submitted: Mar 11, 2008    Views: 290    Comments: 2    Likes: 3   


Rates keep dropping in anticipation of further rate cuts from the Fed to try and prevent the economy from worsening.   Yields on savings and CD accounts continue to fall in anticipation of a rate cut by the Fed. 

On December 7, 2007 you could still get a 5.30% APY savings account from OneUnited Bank.  They now pay 4%.  In February, the top 1 Year CD Rate was Everbank's 4.25% APY.  The top rate is now IndyMac at 3.70%. 

In a recent Forbe's article, economists speculate that the rate could go even lower depending on how the economy performs.  Either way, it will be some time before we see those 6% APYs again.

Visit the CD Rate Tables

Visit the Savings and Money Market Rate Tables

 




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Comments Received:

drake
(Unregistered)

Do you still recommend against CDs longer than three years?

Posted: Mar 11, 2008

Sam Cass
Sam_Cass

I think the time passed to invest in longer term CDs. Six months ago you could have gotten 6% APY and it would have been worth it. But now rates are too low to lock into CDs longer than 1 year in my opinion. With inflation near 4%, a 4% CD is paying an after-inflation return of 0. Better to keep the money in shorter term investments and wait for rates to rise, assuming they do. I'd go for 1 to 2 year CDs. Three years max.

Posted: Mar 11, 2008



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