bank rates

CD Rates Settle Lower This Week

As CD rates settled ever lower this week, there’s word that President Obama is preparing to stomp on the top execs at two big banks that helped caused the financial crisis.

According to reports from the Associated Press and New York Times, the president will demand that the annual salaries of the 25 highest-paid executives at Bank of America and Citigroup have their pay cut 50% or more from last year.

With some CD rates reaching new record lows, President Obama is planning to slash the salaries of top executives at Citigroup and Bank of America.About time.

Savers have certainly had their incomes cut because of the incompetent, overpaid leadership at those two banks.

Bankrate’s weekly survey of large banks and thrifts taken Oct. 21 found the average annual yield for a:

3-month CD remained at 0.41% for the third week. But that’s the lowest average since the survey began tracking 3-month CD rates in March 1989.

6-month CD fell to 0.59% from 0.60% — the lowest average since the survey began tracking 6-month CD rates in January 1984.

1-year CD fell to 0.91% from 0.92% — the lowest average since the survey began tracking 12-month CD rates in October 1983.

Average 12-Month CD Rates, October 2009

2-year CD fell to 1.41% from 1.42% — the lowest average rate since July 2003.

5-year CD fell to 2.21% from 2.23%.That’s slightly above the 2.15% reached in July, which was lowest average rate since the survey began tracking 60-month CDs in January 1984.

(Smart savers won’t settle for average returns. Use our extensive database of CD rates to compare the best deals from scores of banks.)

Investors are suffering because the Federal Reserve is pushing interest rates artificially low to save the banking industry from its reckless lending of the early 2000s.

Bank of America and Citigroup are being singled out by the White House because they’re among the seven firms that received the biggest government bailouts but continued to reward themselves like they were titans of industry.

(Executives at the other five, which include General Motors and insurer American International Group will also have their pay slashed.)

The best thing that could happen is that some of those top Citi and Bank of America execs quit because those banks desperately need new and better leadership.

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Comments (2)
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2 Existing Comments
  1. CrankySaver said:
    on October 24th at 10:53 am

    The Treasury Department did order Bank of America, Citigroup and five other big recipients of federal bailout money to cut the compesation of their top executives in half. Click here to read more about that and the Federal Reserve’s plan to monitor bank pay in the future.

  2. BankswillfailunderObama said:
    on October 30th at 10:16 am

    And now Ken Lewis is quitting. 7 more banks failed on Thursday and FDIC was taking them over on Fridays. Well now they have moved it up a day to Thursday. Sheila even has a You Tube Video on the site now.