Are CD Rates Rising?

Cd rates have been declining this year, this is unfortunate for many who are looking to invest in Cds. Many people wish the Federal Reserve would step in and raise the Cd rates. The three month Cd has fallen from .57% to 55% since last week, the six month Cd has dropped from .85% to .84%, the one year Cd has fallen from 1.08% to 1.10%, and the rest have declined accordingly. This part of the recession is starting to affect everyone, not just the banks. The Federal Reserve hasn’t hinted at any way to raise Cd rates.

The economy is struggling to remain stable during this time. The Fed will only continue to lower the rates on Cds in an effort to pull banks out of recession more quickly. When stabilization becomes more apparent the Fed will raise Cd rates to keep the economy from reaching inflation. Since the economy remains in recession the rates and interest will only remains low for now.

Related Articles From Other Bloggers

• Thank You Federal Reserve -So 2008 has come to a close. I decided to log on to my ING Direct account to see what my year-end savings were and to check out how much interest we made in 2008.  What do I see?  ING has lowered their rates! The new rate is now 2.5%......
• What is a Bank CD? -Before comparing interest rates or buying a CD at the bank, come to an understanding on how Certificates of Deposit work. Rules and Regulations of Bank CDs CDs, commonly known to many as bank certificates of deposit, are issued by many different banks. CDs are tightly regulated via state and......
• Moody's Warns US May Lose AAA Rating -[/caption]XINHUA: Today's news from Xinhuanet.com calls attention to yesterday's warning from the credit rating giant Moody's that the US is in danger of losing its AAA credit rating. This report comes out on the same day Christina Romer, Chairwoman of the President's Council of Economic Advisers testifies before Congress that......
• Fed Joins Other Banks To Cut Interest Rates -Photo Credit: epicharmus I'm about to leave my house when I heard on the news that the Federal Reserve has cut its rate. The coordinated effort, aimed at stemming the fallout from the spreading financial crisis around the world, will likely bring some much-needed relief. U.S. futures spiked about......
• Who is to Blame for the Credit Crunch? -There are many lenders currently under investigation for fraud, perhaps most notably the nation's largest mortgage lender, Countrywide Financial. Even if Countrywide is found to be guilty of fraud, one company alone (even if it is responsible for 20% of the mortgages in the U.S.) cannot be to blame for......

Get Free Email Updates
Like this article? Enter your email address and click "Subscribe" to get the latest articles sent to your email for free. Your email will only be used for this daily update and you can unsubscribe anytime.

* Subscribe to our feed now, it's free!

• Banking: Money Market Rates, Small Business Loans, VA Mortgage,
• Credit Cards: Best Credit Cards, Best Business Credit Cards, Best Student Credit Cards.
• Credit Score: Build Business Credit, Credit Score, Credit Repair.

No comments yet.

Please share your comment: