bank rates

CD Interest Rates Continue to Fall

In lieu of the Federal Reserve’s interest rate cut a few weeks ago, CD (certificate of deposit) rates have followed suit.

According to Bankrate national data, 1-year CD rates, which were once strongly trending higher, have fallen about 5% from their October highs.

National 5-year CD rates are holding steady at 3.90% APY. For the time being, it makes more sense to stash your cash in money market and savings accounts.

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Comments (34)
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34 Existing Comments
  1. Do you know why? said:
    on November 14th at 07:20 am

    A 53 word post? What is this? The Editorial quality of Bankaholic is gone down the drain recently. I will not be surprised if you type a heading and surround it with Google AdSense and Affiliate links and trick users into clicking them. This is getting bad.

    On top of that no links provided to users who happen to mill around your water cooler for a drink.

  2. Travelinator said:
    on November 14th at 07:31 am

    There is no investment class worth investing in anymore. I think this is a first in American history. Stocks, bonds, Cds, real estate, gold, etc all suck.

    What a great Bush era.

  3. Travelinator said:
    on November 14th at 07:33 am

    Hey, the guy is rich now, he is having fun. Time for Bankrate to hire some writers, it is their site now.

  4. Johns Wu said:
    on November 14th at 08:07 am

    Very true, exotic paper investments that financial engineers have mutated into ponzi schemes, and unfortunately USA taxpayers have to foot the bill.

    Gold is manipulated, real estate is dry, bonds cannot be trusted.

    Why are we investing all of our money in a phantom economy of toxic paper contracts, fiat currency, and intangible wealth?

    And worst of all is that TAXES are at an ALL TIME HIGH—INFLATION IS THE SLEAZIEST OF TAXES!!

    Keep your guard up and manage your wealth tightly. A lot of wealth is going to trade hands in the coming years. Most will lose, but you can position yourself to be one of the few who profit.

  5. Travelinator said:
    on November 14th at 08:14 am

    Easy to say from a guy who has 12 million dollars now. If I was your advisor I would say just put it in several banks and spend some of it on fun things. Heck, if you want to lose a little blow it in Vegas. Losing in Vegas with hot women, free drinks, and great shows sure beats losing it to ugly bald guys in pin stripe suits.

  6. Eric B said:
    on November 14th at 01:22 pm

    Interesting article in the Wall Street Journal Online Business Section today:

    “U.S. banks are in a heated competition for deposits as the industry tries to shore up funding sources. Deposit rates are rising sharply.”

  7. Trevor said:
    on November 14th at 03:28 pm

    Everything is dropping. Give us something we don’t know yet =)

  8. Brian in Portland, Oregon said:
    on November 14th at 06:34 pm

    As seniors living on CD & Savings account interest, this is devastating to us. Prices at the grocery store are skyrocketing. They say that the economy is two-thirds consumer spending……it won’t be coming from us seniors!!

  9. Lee said:
    on November 14th at 07:47 pm

    I’ve been keeping a careful eye on 1-yr interest rates and have been disappointed everywhere. “Best in country! 3.5% for 1yr!”
    Uh… no.

    I’ll stick to my variable savings.
    …Which also keeps dropping 🙁

    Note: Last I saw, cnbc had gold up 40 today. Its a rollercoaster not worth riding for my than a few hours I guess.

  10. BankVibe said:
    on November 14th at 08:32 pm

    Sure things seem bleak now but it’s not as if things haven’t been bleak before, right John and Travelinator? Don’t loose faith in the American Economy! Now is the time to focus on where the smart money is investing. Take a look, for example, at Buffet’s strategy. He just invested 3 billion in GE and made a similar investment with Gold Sach’s, testing the simple theory; buy low, sell high. Now is the time for people with chunks of cash in savings to get in at stock prices going for prices well below wholesale. If you’re like myself and can’t stomach the risk of investing in individual companies then look at opening an IRA (and focus on diversifying assets within it).

  11. BloggingBanks said:
    on November 14th at 08:47 pm

    I think that if you want higher interest rates, you might have to stretch out your maturities.. Anyways with interest rates dropping i think that now is the time to lock in fixed rates.. The issue of course is that inflation could come back in 3 months :-)..

  12. BankVibe said:
    on November 14th at 09:12 pm

    BloggingBanks, I think that stretching out your maturities is definately a decent way to lock in higher rates. The only problem with this is that you may suffer an opportunity loss when/if the dow returns to it’s summer ’07 levels of 14,000+. If you have cash, drop it into 1 or 2 year CD’s then be ready to spring when/if markets begin showing signs of life. If you are more comfortable with longer term investments (5 years+) then consider an IRA.

  13. Larry said:
    on November 14th at 10:10 pm

    Seek and ye shall find.( If you can handle listening to perhaps a 20 minute sales spiel on annuities or whatever.) Here in DFW area you can find brokerage companies offering great FDIC insured CDs. I just got a 3-month paying 6.5. Minimum: 10K.

  14. Johns Wu said:
    on November 14th at 11:07 pm

    PLease provide more info on this 6.5% 3mo CD

  15. Do you know why? said:
    on November 16th at 05:11 am

    I think the only asset class left to INVEST in America -is pump up your back links, buy,borrow, beg steal them. Get some traffic geyser to rush in mindless imbeciles to your blog and wave outside with a neon sign come and buy my blog for $12 million. I think that’s the only game left in town. Shoe strings to millions in 2 years no need if you have any real experience, or not, and if your blog starts looking like re-runs of Jerry Springer show.

  16. Travelinator said:
    on November 16th at 05:51 am

    Hey Do you know why? I love reading jealous people like you. You are so angry at others success and frustrated why your crappy site does not make money. Go in a dark room and scream real loud. You will feel better tomorrow.

    Maybe if you could make a site that was useful someone might want to buy it.

  17. BloggingBanks said:
    on November 16th at 06:58 pm

    People are jealous. But why should they? Bankaholic is a nice site related to bank deals, bonuses, cd rates and checking/savings accounts. What else do you want?


    I ladder my emergency fund and other short-term savings that I know I will spend over the next 5 years ( example: college for a certain someone). I do own stocks and funds/etfs in tax deferred and taxable acocunts..

  18. Johns Wu said:
    on November 17th at 08:45 am


  19. Do you know why? said:
    on November 18th at 02:34 am

    Yes and you do come and post with different aliases to give us a feel that several voices are appreciating our response, when in fact its only one man. This is an old trick in the blog o sphere.

    The original post lacks content. The frequency of posts is once or twice a week. Very few for a $12 million dollar baby..

  20. Larry said:
    on November 18th at 04:29 am

    Johns Wu: You can’t find 6.5% CDS -3 mos and 5% 6-12 month CDS when they’re advertised in every major newspaper. ???? You create a web site and can’t tell your readers where to go-SHAME ON YOU!!!!!!!!!!!!!!!!!!!!!!!!!!

  21. Johns Wu said:
    on November 18th at 08:41 am

    I thought you were never coming back?

  22. Johns Wu said:
    on November 18th at 08:44 am

    And BTW,

    NO, I dont see any bank running 6.5% CDs…..

    With 3mo LIBOR rates at 1.47%, there is no way any bank in America is going to offer 6.5% on a 3mo CD.

  23. BloggingBanks said:
    on November 18th at 07:23 pm

    I am not Johns Wu. I am actually his competitor ( sort of), but I am really liking his professional way of answering personal attacks. That’s the dark side of having a blog – people always attack bloggers, since they ( people) are always hiding behind an alias. I am always amazed how people complain about “free content”. What would you expect when you get something for free? Now I am not saying that his commentary is not very good.
    But hiding under an alias and bashing at other people’s work without giving any alternatives for better articles looks immature to me

  24. Larry said:
    on November 18th at 09:28 pm

    I’ll bet that in some major cities one can find a brokerage that can get you a 7% guaranteed 3-mo CD. They subsidize the amount over what a bank is paying in order to get your business and hopefully sell you their other products. Look in Dallas or Fort Worth business sections today and you will see at least one ad advertising a 6.5% CD. It’s a Discover Bank 2.69% CD that the company adds a bonus to, to get the advertised rate.

  25. Do you know why? said:
    on November 21st at 07:47 am

    WM known as JPM’s adopted child is offering some sweet pot annuities for short periods running 5%-6.5%. These act like CD accounts you ladder them properly. Now they do not have a Mickey Mouse clad high school kid standing outside on the curb to advertise these, you need to go there and ask for them.

    As far asking Bankaholics for answers you might as well address the question to a standing tree- you may get a better answer

  26. Dan said:
    on November 21st at 08:23 pm

    Do you know why?, Why are you such a hater? You spend so much time on this site just to talk shit to the owner… you gotta have something better to do…

  27. Johns Wu said:
    on November 22nd at 02:22 am

    Yeah why you gotta be hatin?

  28. Philip said:
    on November 23rd at 08:24 am

    Jealousy! It’s an emotion when a person believes he has been beaten by a rival and when mixed with envy it results in anger, sadness and fear of losing. These people basically acknowledge that they could never accomplish a successful site like
    Anyways, I think now is the best time to save your money. With the current deflation the value of the dollar is rising so the best CD is under your pillow.

  29. Do you know why? said:
    on November 23rd at 09:14 pm

    Bankaholic is not what it use to be. Something has gravely changed. Back links was stopped. Posts were not approved. Posters banned. If that was not enough the JOHN WU handling of comments was rather poor. This all lead to the breakdown and its over the top. I just come here hoping to find something good but its getting harder and harder.

  30. nmlhats said:
    on December 1st at 05:35 pm

    “In lieu of” means “instead of”. Perhaps you meant “in light of”??

  31. MikesMunchiesdotcom said:
    on December 5th at 04:41 pm

    Bloggers are human….envy for one’s success is always amusing. So the publishers of Bankaholic won the lottery….great! Deal with it!
    The only way out of this financial mess…is to tie bailout funds to lenders with the caviat that every subprime loan be converted to a fixed rate for the duration of each or adjust to a shorter period agreeable to the property owner and the lending institution. Say 3% to 3 1/2% fixed for 5-10 or 15 years. Interest only or more payments….gives the homeowner breathing room while giving the banking industry stability and stock holders a reason not to commit suicide. There will be homeowners that lied on their apps, and mortgage reps that created this mess…give the banks back their property..those homes will they say in the car biz…”there is an ass for every seat!” Wall Street investors bought those loan packages at bargain rates, their cash on cash return would still be reasonable and investment stocks will rebound. The old story about folks that deserve pain because they opted to get these loans is bogus, now that everyone is sharing the pain. Anyone that has a loan, income, residential or industrial, should get a 5 to 15 year option to renegotiate to the lowest possible rate, fix it for a short term then get the opportunity to renegotiate without penalty for a new fixed rate loan. A loan the property owner can afford to make monthly without going “bonkers!” Let’s get this country back on track and stop trying to get votes by offering loans to folks that cannot afford them.

  32. Sal Gore said:
    on December 10th at 04:49 pm

    “What a great Bush era.”

    Hi Rip Van Winkle.

    In case you were not taught properly, the US congress makes the laws, not the president. By the way, the congress went under DEMOCRATIC control in 2006, house AND senate.

    Now you have woken up and can see how things have gone down the toilet since THE DEMOCRATS TOOK CONTROL OF CONGRESS.

    While you were sleeping, we had a great run from 2000 through 2006 under a REPUBLICAN president and congress. Gee, what changed in 2006 again??

    Go back to sleep.

  33. curious said:
    on December 21st at 03:17 pm

    I am looking for a safe lump sum investment. Protecting the principal is my goal while making some modest interest returns…any advise

  34. curious said:
    on December 21st at 03:20 pm

    oops..posted too early accidentally…

    any advise about off-shore CDs that are tauting 6.5% APY?? They are income tax free. Are there some off-shore banks folks can recommend??