Certificate of Deposit Yields Set to Drop Further; Bankrate.com Posts Weekly CD Survey Results.Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 30, 2002 Yields on certificate of deposit (CDs) were largely unchanged over the past week, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Bankrate.com data. But does this mean yields have finally bottomed out and are poised to move higher? Unfortunately for CD investors, yields seem almost certain to resume falling. "Economic concerns are once again at center stage thanks to an abysmal consumer confidence reading and disappointing durable good In economics, a durable good or a hard good is a good which does not quickly wear out, or more specifically, it yields services or utility over time rather than being completely used up when used once. Most goods are therefore durable goods to a certain degree. orders," said Bankrate senior financial analyst Greg McBride. "With a heavy economic calendar later in the week, clamoring for a rate cut may grow even louder, pushing yields lower."
Deposit averages from Bankrate.com's national CD survey
Money market account: 0.95%, down from 0.96% last week
6-month CD yield: 1.53%, up from 1.52% last week
1-year CD yield: 1.71%, unchanged from last week
5-year CD yield: 3.41%, up from 3.40% last week
Investors willing to shop for their FDIC-insured money market and certificates of deposit nationwide do much better than average. This week, Bankrate.com found nine institutions paying 2.5 percent APY APY See: Annual Percentage Yield or higher on money market accounts. On one-year CDs, Bankrate.com found five institutions paying 2.9 percent or higher. All yields are available nationally to customers who do not have an existing relationship with the institution. Despite the gloomy economic news, Bankrate's panel of experts remain somewhat optimistic. Slightly more than half are predicting little change in interest rates. Bankrate.com conducts two surveys each week for money market accounts and CDs. The 100 Highest Yields survey is conducted weekly to find the highest-yielding CD and money market accounts available to consumers nationwide. Bankrate.com also conducts a weekly national CD survey, which compiles the rates from the largest banks and thrifts in each of the 10 largest U.S. markets to arrive at a national average. These surveys are supplemented by the Rate Trend Index, a weekly poll of bankers and industry experts on the direction of CD returns in the coming week. To see data from Bankrate's 100 Highest Yields survey, go to http://www.bankrate.com and click on "CD/Savings." To read our Rate Trend Index panel's prediction for CDs, go to http://www.bankrate.com/CD-RTI About Bankrate Inc. Bankrate Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :RATE) owns and operates Bankrate.com, the Internet's leading consumer banking marketplace. Bankrate.com averages 3.3 million unique visitors A count of how many different people access a Web site. For example, if a user leaves and comes back to the site five times during the measurement period, that person is counted as one unique visitor, but would count as five "user sessions. per month, according to comScore Media Metrix, which ranks Bankrate.com first in unique visitors in the "Financial information and advice" category. Bankrate.com reviews more than 4,800 financial institutions in 173 markets in 50 states. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes and small business finance. It is the leading aggregator of over 100 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com provides financial applications and information to a network of more than 80 partners including MSN (1) (MicroSoft Network) A family of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory). (Nasdaq:MSFT MSFT Microsoft (stock symbol) MSFT Movimento Sociale Fiamma Tricolore (Italy) MSFT Multi-Stage Fitness Test MSFT Master of Science in Family Therapy MSFT Macalester Students for Fair Trade ), Yahoo! (Nasdaq:YHOO YHOO Yahoo! Inc. (NASDAQ symbol) ), America Online (NYSE NYSE See: New York Stock Exchange :AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. ), and Smart Money. Bankrate.com's information is also distributed through more than 100 national and state publications. |
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