CD and Savings Rates Poised to Drop Further

Rate information contained on this page may have changed. Please find latest savings rates.

Based on the decision minutes ago by the Fed to lower the discount rate by half a percent instead of the expected quarter of a percent, rates on short term CDs and savings accounts will most likely drop. The drop may start as early as tomorrow.

Based on the decision minutes ago by the Fed to lower the discount rate by half a percent instead of the expected quarter of a percent, rates on short term CDs and savings accounts will most likely drop. The drop may start as early as tomorrow.

With the Fed dicount rate now at 5.25%, banks have no incentive to lend money out above that rate. A quick glance at the BestCashCow CD Rate Table and BestCashCow Savings Rate Table shows that quite a few banks have CDs and Savings accounts in excess of 5.35% APY.

Consumers who want to be sure they receive these rates may want to lock-in quickly.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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Comments

  • Herman Kline

    September 20, 2007

    This is right. CD rates need to drop below the rate at which the Fed is lending to banks. It may not happen immediately and any delay is an opportunity for savers.

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