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CD Rates Enter 3rd Year Of Steady Decline

CD rates fell for the 25th straight month in November, with no end in sight for the decline.

The average return on four of the five certificates of deposit we track fell and ended the month at record lows.

The one exception was for 3-month CDs, whose average return actually ticked up from 0.21% at the end of October to 0.23% at the end of November.

But we’ve seen blips like this before and they have not signaled a change in the overall downward trend for all CD rates.

With Federal Reserve Chairman Ben Bernanke continuing to say the economy isn’t growing fast enough there’s no reason to expect he’ll allow interest rates to rise anytime during 2011 – and maybe not even in 2012.

Bankrate’s final November survey of large banks and thrifts found the average annual yield for a:

3-month CD ended the month at 0.23%, up from 0.21% in October, but down from 0.36% at the start of the year. The 0.21% return reached in October and early November was the lowest average since the survey began tracking 3-month CD rates in March 1989.

6-month CD has fallen to 0.31%, down from 0.32% the previous 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 0.51%, down from 0.53% the previous 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 has fallen to 0.77%, down from 0.79% the previous month and 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 declined to 1.51%, down from 1.57% the previous month and 2.10% at the start of the year. That’s the lowest average rate since the survey began tracking 60-month CDs in January 1984.

Compare these returns with the best CD rates from scores of banks in our database.

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  1. Charlie Bennett said:
    on January 18th at 09:07 pm

    I recently rooled over a 401k, started in 2002, the bank got the check and it was only 950.00 . I started with at least 2000.00. Is this normal or did I get riped off? It was a low to moderate plan?