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CD Rates Kept Falling In October

Savers have been taking it on the chin for two years now, as CD rates fell for the 24th straight month in October.

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

The biggest declines were on longer-term CDs, with the average yield on 5-year CDs falling more than a tenth of a point.

With the Federal Reserve determined to push interest rates even lower, we certainly expect the decline to continue into a third year this month.

Bankrate’s weekly survey of large banks and thrifts taken Oct. 27, found the average annual yield for a:

3-month CD ended the month at 0.21%, down from 0.22% in September and 0.36% at the start of the year. It’s the lowest average since the survey began tracking 3-month CD rates in March 1989.

6-month CD has fallen to 0.32%, down from 0.33% 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 0.53%, down from 0.57% 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 0.79%, down from 0.88% 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 1.57%, down from 1.68% 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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