Long term interest rates are getting ready to drop again if the Fed has its way with buying billions of dollars worth of Treasury bonds. The buying of bonds will allow interest rates to continue their downward spiral in an attempt to stimulate the economy. By lowering long term interest rates it would stimulate buying and spending and help to reduce unemployment. The Fed wants to boost the inflation rate because of falling prices and wages which is being viewed as a more dangerous threat to the economy.
The meeting is set for November 2-3, 2010.
There have been no other changes to the best available CD rates since our last update.
The best 12 month CD rate still goes to Melrose Credit Union at 1.51% APY.
| *Term | Bank | October 18 | Last Week |
|---|---|---|---|
| 3 Month CD | Nexity Bank | 0.86% | 0.86% APY |
| 6 Month CD | Aurora Bank | 1.15% APY | 1.15% APY |
| 12 Month CD | Melrose Credit Union | 1.51% APY | 1.51% APY |
| 24 Month CD | Bank of Internet | 1.79% APY | 1.79% APY |
| 36 Month CD | Melrose Credit Union | 2.27% APY | 2.27% APY |
| 60 Month CD | Melrose Credit Union | 3.03% APY | 3.03% APY |
