CD Rates Continue Their Slide Down, But For How Long?

Over the past few years interest rates have fallen to record lows. Low interest rates are good if you are in the market to buy a house, refinance your current mortgage or car loan, but for most of us we have seen our interest rates increase on our credit cards (Thank you CitiCards for the increased rate from 14% to 29.99%, even though I have perfect credit and never missed a payment) and our interest rates fall on our certificate of deposits, to record lows.

By taking a look back just a few months we can see that interest rates are still falling. We reported on February 22, 2011 that Walden Savings Bank had a 6 Month CD at 0.75% with a minimum deposit of $1,000. That same certificate of deposit sits at 0.60% for the 6 Month term. We also reported on April 6th, 2011 that Aurora Bank had the current best 1 year CD rate at 1.25%. Now just over two months later that same CD from Aurora is down to 1.21%.

Even the longer term CD’s are seeing drops in interest rates. The 24 Month CD from SalemFive ($10,000 minimum deposit) has dropped from 1.75% on February 21st 2011 to 1.30% on June 23rd 2011. Most major banks have been lowering their rates, while many credit unions such as Melrose Credit Union out of New York has held their rates steady for the most part. Melrose’s 2 year CD has been at 1.66% APY since February. In fact Melrose holds the top spot for the 24 month CD at 1.66% with a minimum deposit of $5,000. This is a credit union that has opened its door’s to anyone located within the USA. You will want to visit their website to view their terms and conditions for opening an account.

Thus far CD rates have fallen throughout the year, while some have held steady. If you plan on investing money into any CD, its best to research as much as you can before making a decision on which bank and term to go with. You can easily find a list of the best CD rates from our CD Rate table for your research. In an unstable economy, rates can continue to fall, so it could be wise to put your money in a higher interest, longer term CD or it could be just as bad to be stuck in a CD with a low interest rate while CD rates increase.

*We cannot make any financial advise and take no responsibility for the actions people take from visiting our website. Please consult your financial advisor before making any investment decisions.


Best CD Rates For Monday July 12 2010

The best 12 month CD Rates we could find for Monday July 12th, 2010 are sitting around 1.55% APY. CD Rates are expected to head to higher grounds after the end of this year and early next year. As the US economy continues to slow down and inflation stays where it’s at, the Fed has no reason to raise interest rates. As long as the Fed keeps interest rates at record lows, the interest rates on CDs will stay the same. As soon as interest rates begin increasing, so will CD Rates.

The national average for a 12 month CD is 0.83 percent starting this week. Even though this national average rate is dismal, you will find better luck with a local bank or credit union or an institution online for a much higher rate. Do not get stuck with this rate, as you can find much higher rates from Flagstar Bank and Sallie Mae.

Both of these banks are currently offering 12 month CD rates at 1.55% annual percentage yield.

Flagstar Bank requires a minimum of $500 for their CD and Sallie Mae has a minimum opening deposit of $1. These might be a good option if you are looking for a place to put a small amount of cash and earn more than the current 1.1% interest rate on a high yield savings account. The only downside to putting money into a certificate of deposit is you have to wait the full 12 month term or risk losing money from an early withdrawal penalty