bank rates

CD Rates Fall More Slowly In April

Although most CD rates declined for the 18th straight month in April, they’re falling much more slowly than they did last winter.

The average return on three of the five certificates of deposit we track finished the month lower than were at the end of March.

The average return on three of the five certificates of deposit we track finished the month lower than were at the end of March.But the decline was as small as it could possibly be — just one-hundredth of a point in each instance.

Two-year CDs were unchanged and the average return on 5-year CDs rose for the third straight month and is now up slightly for the year.

That made April the best month for CD rates since the financial crisis began in October 2008 and raises the hope — although right now it’s just a hope — that rates could be bottoming out.

Bankrate’s weekly survey of large banks and thrifts taken April 28 found the average annual yield for a:

3-month CD has fallen to 0.31%, down from 0.32% last month and 0.36% at the start of the year. That’s the lowest average since the survey began tracking 3-month CD rates in March 1989.

6-month CD has fallen to 0.43%, down from 0.44% last month and 0.50% at the start of the year. It’s the lowest average since the survey began tracking 6-month CD rates in January 1984.

1-year CD has fallen to 0.71%, down from 0.72% last month and 0.82% at the start of the year. It’s the lowest average since the survey began tracking 12-month CD rates in October 1983.

2-year CD ended the month exactly where it closed in March, at 1.15%. But that’s down from 1.24% at the start of the year and is the lowest average since the survey began tracking 24-month CD rates in March 1989.

5-year CD rose to 2.14%, up from 2.13% last month and 2.10% at the start of the year. The 2.06% reached in January remains the lowest average rate since the survey began tracking 60-month CDs in January 1984.

You’ll find many better-than-average CD rates from scores of banks in our database.

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