Savings and CD Rates Keep Dropping Along with Fed

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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%.

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 Forbes 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.

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Visit the Savings and Money Market Rate Tables


Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to bank transparency and the climate crisis. 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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Today's Highest Online CD Rates

Bank Product Term Interest Rate (APY)
M.Y. Safra Bank 1-Year 2.51% APY with $500 minimum
Sallie Mae Bank 1-Year 2.50% APY with $2,500 minimum
Discover Bank 1-Year 2.30% APY with $2,500 minimum
Pentagon 3-Year 3.25% APY with $1,000 minimum
Popular Direct 3-Year 3.10% APY with $10,000 minimum
M.Y. Safra Bank 3-Year 3.06% APY with $500 minimum
Bread Savings, a division of Comenity Capital Bank 5-Year 3.65% APY with $1,500 minimum
M.Y. Safra Bank 5-Year 3.26% APY with $500 minimum
Popular Direct 5-Year 3.25% APY with $10,000 minimum

See More Online CD Rates →


  • drake

    March 12, 2008

    Do you still recommend against CDs longer than three years?

  • Sam Cass

    March 12, 2008

    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.

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