bank rates

CD Rates Fall For 15th Straight Month

The Federal Reserve has just reiterated its determination to keep interest rates at record lows until the economy is not just growing, but creating enough jobs to drive the unemployment rate down.

With more than 15 million Americans out of work, we understand that the country can’t afford another jobless recovery like the ones that followed the last two recessions.

But that policy is making savers pay a frightful price as the returns on certificates of deposits continue their relentless, 15-month decline.

The Federal Reserve has just reiterated its determination to keep interest rates at record lows until the economy is not just growing, but creating enough jobs to drive the unemployment rate down.Bankrate’s weekly survey of large banks and thrifts taken Jan. 27 found the average annual yield for a:

3-month CD has fallen to 0.34%, down from 0.36% at the end of December. It’s the lowest average since the survey began tracking 3-month CD rates in March 1989.

6-month CD has fallen to 0.48%, down from 0.50% at the end of December. It’s the lowest average since the survey began tracking 6-month CD rates in January 1984.

1-year CD has fallen to 0.76%, down from 0.82% at the end of December. It’s the lowest average since the survey began tracking 12-month CD rates in October 1983.

2-year CD has fallen to 1.20%, down from 1.24% at the end of December. It’s the lowest average since the survey began tracking 24-month CD rates in March 1989.

5-year CD has fallen to 2.07%, down from 2.10% at the end of December. The 2.06% reached earlier in January was the lowest average rate since the survey began tracking 60-month CDs in January 1984.

With average rates like this you can’t settle for average returns.

Use our database of CD rates to find and compare the best deals from scores of banks.

Since mid-2009, the consensus among economists was that the unemployment rate would peak in February and show enough improvement by June for the Fed to ease up and allow interest rates to rise.

So it’s crunch time for those predictions.

If we don’t see some serious job creation over the next few months, it’s quite likely that the Fed would continue its aggressive intervention in the market through late summer or even fall.

The economy needs to create 120,000 jobs every month just to cope with all of the new entrants to the job market.

To do that, and put a significant number of those who lost their jobs during the recession back to work, it needs to be growing by at least 200,000 to 300,000 jobs a month by summer.

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (3)
1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 5.00 out of 5)
Loading...
3 Existing Comments
  1. Dave said:
    on January 29th at 02:13 am

    For all of you who sat on your a$$ and did nothing while Ben Bernanke was reconfirmed for four more years of class warfare against savers, retirees and small investors you got what you deserved, ZERO as in interest rates and concern for anybody but Bank CEOs and Hedge Fund managers.
    Like all the other trash leftover from the Bush administration this man has only two states of being: corruption or incompetence.
    Enjoy the next four years, he’s there because it’s easier to do nothing.

  2. Daniel Hahn said:
    on January 30th at 08:17 am

    So Dave, are you saying Obama is going to fix the problem?

  3. willam hopkins said:
    on January 31st at 12:05 am

    Why don’t you just join reward checking accts and get 4-5% instead of bitching?